Without a transfer of national fiscal powers to the European level, such a set-up would undermine the incentives for sound and sustainable policy decisions in the member states. I will come back to this point later on. 3.
Our main concern is that Slovakia, being a catching-up economy, is likely to face inflationary pressures that could derail the economy from a sustainable convergence path after euro adoption. Top priority must therefore be given to the sustainable economic convergence of the Slovak economy towards the more mature countries of the euro area.