Identifier
Created
Classification
Origin
07LJUBLJANA2
2007-01-03 13:21:00
UNCLASSIFIED
Embassy Ljubljana
Cable title:
SLOVENIA SAILS SMOOTHLY INTO EUROZONE
how-toVZCZCXRO8024 RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV DE RUEHLJ #0002 0031321 ZNR UUUUU ZZH R 031321Z JAN 07 FM AMEMBASSY LJUBLJANA TO RUEHC/SECSTATE WASHDC 5432 INFO RUCNMEM/EU MEMBER STATES RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS LJUBLJANA 000002
SIPDIS
SIPDIS
DEPT FOR EUR/NCE MNORDBERG, EUR/ERA, EB
PLEASE PASS TO USTR/LERRION, USDOC FOR ITA/CRUSNAK,
TREASURY FOR VATUKORALA
E.O. 12958: N/A
TAGS: ECON EFIN EINV ETRD EUN SI
SUBJECT: SLOVENIA SAILS SMOOTHLY INTO EUROZONE
REF: LJUBLJANA 000815
-------
SUMMARY
-------
UNCLAS LJUBLJANA 000002
SIPDIS
SIPDIS
DEPT FOR EUR/NCE MNORDBERG, EUR/ERA, EB
PLEASE PASS TO USTR/LERRION, USDOC FOR ITA/CRUSNAK,
TREASURY FOR VATUKORALA
E.O. 12958: N/A
TAGS: ECON EFIN EINV ETRD EUN SI
SUBJECT: SLOVENIA SAILS SMOOTHLY INTO EUROZONE
REF: LJUBLJANA 000815
--------------
SUMMARY
--------------
1. (U) The Government of Slovenia (GOS) successfully entered
the eurozone on January 1. The Slovenian Central Bank
Governor, Mitja Gaspari, and Finance Minister, Andrej Bajuk,
heralded Slovenia's entry as the 13th eurozone country with a
laserlight countdown, loud fanfare and thousands of
onlookers. Although many Slovenians and tourists from
neighboring countries are concerned about price increases,
the overall mood is upbeat and expectations are high for new
economic growth and opportunities connected with entry into
the eurozone. END SUMMARY.
--------------
PREPARATIONS PAY OFF
--------------
2. (U) A few minutes after midnight on January 1 Gaspari,
Bajuk, and the "father" of the Slovenian tolar France Arhar,
all went to different bank machines in Ljubljana and
successfully drew out euros. All were sanguine about the
transition to the euro and confident that the changeover
deadline would be met without any difficulties. The
confidence seems to be well placed. Almost 75% of bank
machines were back online by 4AM January 1 with 90% online by
11AM. All bank machines were distributing euro by January 2.
Stores, restaurants and vendors were also well prepared for
the transition. Concerns that vendors would run out of euros
to make change were unfounded. January 3 is the first working
day using euros, but because of Slovenians' familiarity with
using euros, the changeover has been smooth sailing.
--------------
PRICE HIKES GREATEST CONCERN
--------------
3. (SBU) Based on a December 2006 poll, price increases
continue to be the main concern for Slovenians. The GOS has
strongly encouraged businesses and government offices to
maintain current prices at least until June 2007. Overall, no
major violations have been discovered, although price
increases on individual items such as movie tickets and food
items have been observed. One notable pricing violation was
the City of Ljubljana's parking office. In response to
consumer complaints regarding public parking fee increases,
the Mayor of Ljubljana, Zoran Jankovic, dismissed the
Director of Public Parking and forced the resignation of the
head of the Department of Public Companies and Traffic for
unlawfully raising prices on parking fees. Market inspectors
are out in full force and will continue to monitor retailers
throughout 2007.
COLEMAN
SIPDIS
SIPDIS
DEPT FOR EUR/NCE MNORDBERG, EUR/ERA, EB
PLEASE PASS TO USTR/LERRION, USDOC FOR ITA/CRUSNAK,
TREASURY FOR VATUKORALA
E.O. 12958: N/A
TAGS: ECON EFIN EINV ETRD EUN SI
SUBJECT: SLOVENIA SAILS SMOOTHLY INTO EUROZONE
REF: LJUBLJANA 000815
--------------
SUMMARY
--------------
1. (U) The Government of Slovenia (GOS) successfully entered
the eurozone on January 1. The Slovenian Central Bank
Governor, Mitja Gaspari, and Finance Minister, Andrej Bajuk,
heralded Slovenia's entry as the 13th eurozone country with a
laserlight countdown, loud fanfare and thousands of
onlookers. Although many Slovenians and tourists from
neighboring countries are concerned about price increases,
the overall mood is upbeat and expectations are high for new
economic growth and opportunities connected with entry into
the eurozone. END SUMMARY.
--------------
PREPARATIONS PAY OFF
--------------
2. (U) A few minutes after midnight on January 1 Gaspari,
Bajuk, and the "father" of the Slovenian tolar France Arhar,
all went to different bank machines in Ljubljana and
successfully drew out euros. All were sanguine about the
transition to the euro and confident that the changeover
deadline would be met without any difficulties. The
confidence seems to be well placed. Almost 75% of bank
machines were back online by 4AM January 1 with 90% online by
11AM. All bank machines were distributing euro by January 2.
Stores, restaurants and vendors were also well prepared for
the transition. Concerns that vendors would run out of euros
to make change were unfounded. January 3 is the first working
day using euros, but because of Slovenians' familiarity with
using euros, the changeover has been smooth sailing.
--------------
PRICE HIKES GREATEST CONCERN
--------------
3. (SBU) Based on a December 2006 poll, price increases
continue to be the main concern for Slovenians. The GOS has
strongly encouraged businesses and government offices to
maintain current prices at least until June 2007. Overall, no
major violations have been discovered, although price
increases on individual items such as movie tickets and food
items have been observed. One notable pricing violation was
the City of Ljubljana's parking office. In response to
consumer complaints regarding public parking fee increases,
the Mayor of Ljubljana, Zoran Jankovic, dismissed the
Director of Public Parking and forced the resignation of the
head of the Department of Public Companies and Traffic for
unlawfully raising prices on parking fees. Market inspectors
are out in full force and will continue to monitor retailers
throughout 2007.
COLEMAN