Slovakia to seek strong euro exchange rate

Left-wing Robert Fico said Slovakia wanted the strongest possible exchange rate for its crown currency into the euro, when it would be set in July by EU finance ministers, but not one that would harm economic growth.

"We want the strongest possible conversion rate ... that people can pay as few crowns as possible for the euro," he told reporters at an EU summit in Brussels.

"But too strong a conversion rate could reduce economic growth. We would like to keep economic growth at the highest possible level and the people to profit from it (the conversion rate) as much as possible."

The Slovak crown rose against the euro on Fico's remarks to 30.285 from 30.355, according to Reuters' data.

The EU's 27 leaders earlier approved as expected Slovakia's bid to the euro zone's 16th member, despite European Central Bank concern over the country's inflation.

"We have the euro. Definitely. This is a big success of Slovakia, because it met all the criteria in difficult times of food and oil price rises," Fico said.

Analysts say that a strong conversion rate will help Slovakia fight inflation. Fico has said it will also make the country's 5.4 million citizens richer when their salaries are translated into euros.

The EU leaders concluded, as recommended by the executive European Commission, that Slovakia met all euro entry criteria on inflation, interest rates, budget deficit and currency stability.

Slovakia will become the fourth of the bloc's new members that have joined the EU since 2004 to adopt the euro. Much smaller Slovenia entered the single currency zone in 2007, followed by Cyprus and Malta this year.

Bigger EU newcomers Poland, the Czech Republic and Hungary are expected to adopt the euro well after 2010.