Slovakia became the 16th nation to join the euro region, after record advances in economic growth and the koruna helped the eastern European country qualify to adopt the common currency.
Fireworks set off at midnight glittered over the Danube River in the Slovak capital Bratislava following a countdown at Hlavne Namestie, the main square in the old town where thousands of Slovaks gathered for an all-night rock concert.
Slovakia, which joined the European Union in 2004, is the second former communist nation to complete the switch after Slovenia. It passed up Hungary, Poland and the Czech Republic into the euro zone at a time other candidates are scrambling to make the change to shield themselves from the brunt of the worldwide financial crisis.
"We are waving goodbye to the Slovak currency, to which we have become strongly emotionally attached," said prime minister Robert Fico, who withdrew €100 from an ATM bank machine in the parliament building near Bratislava Castle early this morning.
Slovakia was able to keep inflation below the euro-adoption limits because of the record strength of its currency, the koruna, which capped import prices. Its budget deficit was kept under control because of increased revenue from economic growth. Gross domestic product expanded a record 14.3 per cent in the fourth quarter of 2007 and grew an annual 7 per cent in last year's third quarter.
Bloomberg