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Slovenia Business Week no. 52/2004: IMAD Says 2005 Crucial for Meeting Convergence Criteria

The Institute for Macroeconomic Analyses and Development (IMAD) anticipates that it will be clear by the middle of next year whether Slovenia is on the right track of meeting the convergence criteria

The Institute for Macroeconomic Analyses and Development (IMAD) anticipates that it will be clear by the middle of next year whether Slovenia is on the right track of meeting the convergence criteria.

According to Bostjan Vasle of the government institute, Slovenia's entry into the euro zone by 2007 will remain the country's top priority under the new government of Janez Jansa.

The institute will meanwhile have to fulfil a key task next year of gathering data about inflation, public finances, interest rates and domestic currency rate, Vasle explained for STA.

He also assured that the institute would supplement the convergence programme for the period 2004-2007, adopted by the government in May, by the end of this year.

The country has to supplement the convergence programme once year, in between 15 October and 1 December. However, the institute has asked the European Commission for a one-month postponement given the recent change of government.

Vasle does not expect any extensive changes or corrections to be made to the programme this time since all key economic policies have already been adopted in previous months by the former government.

According to Vasle, the country's key priority in the coming months would be to curb inflation and adopt structural changes regarding the public finances.

The main risks the country will face will be the excessive inflow of capital, which might jeopardise the permitted exchange rate between tolar and euro, and the excessive credit expansion, Vasle explained.

Source: Slovene Press Agency STA

Author: STA