Bratislava - Slovakia's admission into the euro club crowned a post-communist boom and marked a historic shift that its leaders say will further boost the economy, currently paced by Asian and European carmakers.

Switching to the joint currency on January 1 will spur foreign investment and make business easier for companies with plants in the Central European country, Slovak officials say.

"The euro will bring us additional stability," central bank chief Ivan Sramko said. "No one will automatically get richer or poorer on January 1, 2009, but in the end the euro will contribute to progress for everyone."

Tell that to Edita Kosikova, 60, a retired government employee in Bratislava, the capital of one of Europe's fastest-growing economies.

"I don't think it's good," she told a reporter. "Prices will go up. My pension is small."

Fears are growing particularly among older and low-income Slovaks that the euro switch will be a bad bargain, pushing up consumer prices when food and energy costs are already soaring.

A recent government-sponsored poll said 72 per cent in Slovakia feared the euro's arrival and 56 per cent expected more drawbacks than advantages, up from 40 per cent in a November survey.

Popular concern about euro-driven inflation has popped up repeatedly, including in Germany, since the currency's 1999 debut.

No conclusive proof has emerged, but the European Union's executive arm and the European Central Bank did warn Slovakia to be vigilant on inflation when they approved its euro application Wednesday.

The government plans to spend 6 million euros (9 million dollars) on an information blitz this year to increase public support for the euro. New laws are in place to punish price gouging.

Yet no euro referendum is planned and EU governments are expected to formally invite Slovakia this summer to become the 16th eurozone country. It would be the first from the former Soviet economic zone.

For companies that use Slovakia as a European export base - big names include automakers Volkswagen, Toyota, Hyundai and Kia and electronics giants Sony and Samsung - the advantage of operating in the currency used by the continent's largest economies is clear.

When Sony talked with Slovak officials in February about expanding production, the euro was a key factor.

Slovakia's economy grew a record 10.3 per cent in 2007 and car production nearly doubled to 571,000, making Slovaks the world's biggest car producers per head. EU forecasts call for slower growth, but also lower inflation, next year.

Medicine student Dusan Oprsal, 22, said he wasn't sure the government's efforts to hold prices in check would work. But he said he looks forward to trading in his Slovak korunas for the convenience of a currency used by some 320 million people.

"I think it's great for the future," he said. "With economic growth, it will be all right in a few years." (dpa)