Brussels - The European Union has approved a revaluation of the Slovak national currency, the koruna, by almost 18 per cent, shortly before EU member states are set to decide on whether or not Slovakia should join the euro next year.

Following a request from the Slovak government, the ministers of the 15 countries which currently use the euro, plus officials from Denmark, the Baltic states and the European Central Bank, agreed to revalue the koruna upwards by 17.65 per cent, a statement from the European Commission said late Wednesday-early Thursday.

The new, strengthened rate of the koruna to the euro, which is allowed to fluctuate by 15 per cent, is 30.126 koruna per euro, the statement said.

The decision, taken just weeks after the commission recommended that Slovakia be taken into the eurozone next year, was based on an appreciation of "ongoing improvements in underlying fundamentals" in the Slovak economy, and will "support the authorities in maintaining macroeconomic stability," the statement said.

In return for the decision, the commission and member states insisted that the Slovak government keep its spending tightly in check and continue to modernize the economy.

Slovakia joined the EU's Exchange Rate Mechanism II (ERM-II, the precursor to joining the euro) in 2005, thereby pegging the exchange rate of the koruna to the euro.

While the commission has recommended that Slovakia join the euro next year, EU member states still have to approve the move. (dpa)