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European Union finance ministers agreed to allow Slovakia to become the second East European country to adopt the euro, endorsing a proposal to convert the Slovak koruna to the common currency at a rate of 30.126.

Ministers backed the European Commission's proposal to widen the euro region to 16 nations on January 1st and exchange the koruna at the so-called central parity rate.

That rate was set in May when the EU allowed the koruna to strengthen within the exchange-rate mechanism, the pre-adoption test of currency stability.

Slovakia, which follows the former Yugoslav republic of Slovenia into the euro zone, expects the economy to benefit from the scrapping of foreign exchange charges while the strength of the conversion rate contains inflation.

The forint and zloty are among currencies that will benefit the most from Slovakia adopting the euro at the current peg, according to Barclays.

“We managed to negotiate the strongest possible rate,” said Slovak Finance Minister Jan Pociatek in a phone interview from Brussels. “It is beneficial for citizens and their savings as well as for companies.”

The Slovak koruna declined to 30.275 at in Bratislava, from 30.226 late yesterday.