The European Commission today proposed that with effect from 1st January 2007 the euro will replace Slovenia's currency, the tolar, at the fixed and irrevocable conversion rate of 239.640 tolars for one euro. This is the central rate at which the tolar entered ERMII two years ago and at which the tolar-euro exchange rate has stayed close ever since. The decision on the conversion rate must be taken by the euro area finance ministers together with Slovenia during the next Ecofin Council on July 11.
The Commission today proposed to the Council to fix the irrevocable conversion rate at which the euro will replace the tolar at 239.640 tolars for one euro with effect from the 1st of January 2007.
This is the central rate agreed on 28 June 2004 when the Slovenian currency entered the Exchange Rate Mechanism II (ERMII). As the Commission noted in its Convergence Report on Slovenia of 16 May, the tolar-euro exchange rate has stayed close to the central rate with maximum variations of roughly 0.1% both up and down.
The final decision will be taken by the finance ministers of the euro area and Slovenia during the next Ecofin meeting on July 11, in Brussels. Earlier that day the Ecofin Council is expected to approve the Commission's proposal of May 16 ending Slovenia's derogation from the euro and clearing the way for the adoption of the euro by Slovenia on January 1, 2007.
Last week, in its third report since the 2004 enlargement of the European Union, the Commission concluded that the practical preparations for the introduction of the euro in Slovenia were at an advanced stage. But the final preparations must be speeded up to ensure a smooth changeover and to address citizens' fears about price increases (See IP/06/817)
Slovenia became member of the EU in May 2004 together with nine other countries. If agreed by the Ecofin Council, it would be the first to adopt the euro. Most of the other countries wish to join the euro area between 2008 and 2010.
Slovenia, which last Sunday celebrated 15 years of independence, has a population of around two million for an area of 20,000 square kilometres. It adopted the tolar in 1991 in replacement of the dinar, the currency of the former Yugoslavia.
The national sides of the Slovenian euro coins will depict national landmarks and heroes. The €1 coin, for example, features Primo¯ Trubar, the author of the first printed book in Slovenian in the 16th century.
 The Convergence Report on Slovenia can be found at: http://ec.europa.eu/economy_finance/publications/convergence/report2006_slovenia_en.htm
 For details on the Third Report on the Practical Preparations on the Enlargement of the Euro Area go to :