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Slovenia Business Week no. 02: Economists: Euro Will Require Responsibility and Discipline

Two prominent Slovenian economists have expressed their belief that a successful euro changeover does not mean the job is done and that Slovenian economic policy makers can relax

Two prominent Slovenian economists have expressed their belief that a successful euro changeover does not mean the job is done and that Slovenian economic policy makers can relax. Instead, they claim, serious work has only begun.

Former finance minister Dusan Mramor told STA the government's failure to face the upcoming challenges could annul all the benefits of the euro and even change things for the worse.

"There are many examples of countries which have experienced negative consequences of the common currency," Mramor said.

According to him, the government will have to adapt to the new situation by replacing the macroeconomic policies led so far excellently by the central bank with a new approach to the set of policies that are still in its domain and continue with an appropriate adaption of the economic system.

The task requires discipline, knowledge and some difficult political decisions, says Mramor. He adds that however things turn out, the Slovenian economy has gained a lot with the euro, at least in the long run.

Economist and former chancellor of the Ljubljana University, Joze Mencinger, believes the "enthusiasm over the achievement is unnecessary as it was impossible to avoid the euro".

Mencinger claims the present euphoria makes us overlook the fact that the euro changeover also means the adoption of a monetary policy adjusted to the EU average and to the "big ones".

According to him, Slovenia has lost one of its last attributes as a national economy and is now even less independent than at the time when its national economy was still in the making.

Mencinger does not see many reasons to celebrate the euro, not because of a lost "national identity" or nostalgia, but rather because he does not think the euro will have only positive effects on the economy.

Source: Slovenian Press Agency STA

Author: STA, Slovenian National Press Agency