The Story of the Euro

Slovenia’s application to join the euro area in 2007 was approved by the Council of the European Union on 11 July 2006.

Introduction of the euro in Slovenia

Slovenia was the first of the ten countries that joined the EU on 1 May 2004 to then join the euro. On 1 January 2007 the euro became legal tender in Slovenia, at the irrevocable conversion rate of 239.640 tolars to the euro. Since 15 January 2007 it has only been possible to use euro banknotes and coins to make payments in Slovenia; until 14 January the period of dual circulation was in effect, when tolar banknotes and coins could also be used for cash payments. Tolar banknotes are permanently exchangeable at Banka Slovenije, while the exchange of tolar coins ceased on 3 January 2017.

Stages of the introduction of the euro in Slovenia

Pre-accession stage

(until EU accession, i.e. before 1 May 2004)

• Fulfilment of the criteria for EU membership.

• Adoption of the regulations related to the Economic and Monetary Union (EMU).

• Beginning of consultations regarding participation in ERM II and the central exchange rate (central parity).

Post-accession stage until joining ERM II

(from 1 May 2004 to joining ERM II on 28 June 2004)

• Participation in EMU as a member state with a derogation regarding the introduction of the euro.

• The exchange rate policy is a matter of common interest.

• Banka Slovenije becomes part of the European System of Central Banks (ESCB), and the Governor of Banka Slovenije becomes a member of the General Council of the ECB.

• Compliance with the rules on the coordination of economic policies in EMU.

Participation in ERM II

(from 28 June 2004)

• The exchange rate policy focuses on a stable exchange rate against the euro.

• The European Commission and the ECB prepare a convergence report.

  • European Commission convergence report

  • ECB convergence report

• Irrevocable determination of the tolar/euro conversion rate following the decision that Slovenia can join the euro

Introduction of the euro 

(1 January 2007)

• The tolar/euro conversion rate begins to apply (239.640 tolars to the euro).

• Introduction of the euro as legal tender.

• Banka Slovenije becomes part of the Eurosystem, consisting of the ECB and national central banks of those EU Member States that have introduced the euro (the Governor of Banka Slovenije becomes a member of the Governing Council of the ECB).

History of the introduction of the euro: key events

Stages in the introduction of the euro in the first euro area countries

Under the scenario for the introduction of the euro as the new single currency, which was approved at the European Council meeting in Madrid in December 1995, the introduction of the euro proceeded in the following stages:

The euro was introduced on 1 January 1999 as an accounting currency in 11 EU Member States (Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain), who were then joined by Greece on 1 January 2001, to create a euro area of 12 EU Member States. The currencies of these countries thus became subunits of the euro (their irrevocable conversion rates against the euro began to apply on 1 January 1999, or 1 January 2001 in the case of Greece). The public debt of these countries was denominated in euros, and the financial markets of these countries also changed over to the new currency. Central bank operations also began being executed in euros.

During the transition period from 1 January 1999 to 31 December 2001 preparations were made for the final replacement of the euro area legacy currencies and the introduction of euro banknotes and coins. The banknotes and coins of the legacy currencies retained their status as legal tender.

Euro banknotes and coins entered into circulation on 1 January 2002. This was followed by a period during which the banknotes and coins of the legacy currencies and the new euro banknotes and coins were both in circulation. The period of dual circulation lasted until 28 February 2002. This period was shorter in some countries, depending on the decision of the country in question and its national plan for changing over from the domestic currency. During this period both legacy banknotes and coins and euro banknotes and coins could be used to make payments. The legacy banknotes and coins were gradually withdrawn from circulation, with euro banknotes and coins alone remaining legal tender in the euro area countries after the period of dual circulation. During the period of dual circulation (to 28 February 2002), individuals in the euro area could exchange legacy banknotes and coins free of charge at commercial banks (usually this only applied to bank customers or up to a certain amount, e.g. a maximum sum of ATS 50,000 in Austria, a maximum sum of EUR 635 in Ireland). In certain countries this continued after the end of the period of dual circulation (to the end of June 2002 in some countries and the end of December 2002 in others), although commercial banks were allowed to charge a fee in some places.

Since the end of the period of dual circulation, the legacy banknotes and coins have no longer been legal tender, and are now exchangeable solely at the central banks of the euro area. Banknotes of other euro area countries could also be exchanged free of charge at the central banks of euro area countries until 31 March 2002 (e.g. German marks and Italian lira could be exchanged at the Austrian central bank).

The legacy currencies ceased to exist as accounting currencies on 1 January 2002. All bank accounts of individuals and businesses in the euro area were automatically converted into euros by 31 December 2001. References to legacy currencies in legal provisions, contracts, payment instruments (other than banknotes and coins) and other acts having legal effect and in force as at 31 December 2001 were considered to be a reference to the euro at the valid conversion rate.

National scenarios for the exchange of cash in the euro area