Euro Conference Stresses Benefits, Challenges of Euro

Slovenian central bank Governor Mitja Gaspari said in his keynote address that the euro was an opportunity for the country to build a stable economic and financial environment.

European Central Bank (ECB) President Jean-Claude Trichet said the benefits of the euro included no exchange rate risks with respect to its main trade partners, price transparency, protection against financial disturbances and the benefit of stability-oriented policy from the ECB.

While the officials were full of praise for Slovenia's speedy adoption of the single currency, warnings could be heard about the challenges that face Slovenia in the future.

Gaspari said that "whether and how we will succeed in further developing all that we have achieved in the past years does not depend on the euro, but on ourselves."

European Commissioner for Economic and Monetary Affairs Joaquin Almunia expanded on this by stressing the need for low inflation and long-term sustainability of public finances. He said Slovenia must continue to pursue anti-inflationary macro-economic policies and "make use of the currently favourable economic climate to accelerate the ongoing fiscal consolidation process."

The officials made a point of the risk posed by the ageing population in Slovenia, with Almunia saying that demographic trends in the country placed "the long-term sustainability of public finances in the high-risk category".