MNI BRUSSELS WATCH: Cz, Sw Closest Euro Joiners On Convergence

--VP Dombrovskis Says The Two Are Technically Closet Joiners

By Tara Oakes

     TALLINN (MNI) - Sweden and the Czech Republic are the closest countries to

joining the single currency in terms of convergence criteria, the European

Commission Vice President in charge of the euro said Thursday.

     VP Valdis Dombrovskis told journalists in Tallinn ahead of an Ecofin meet

that the two countries were technically closest.

     "Some countries are almost there: Sweden is one, Czech Republic is

another," he said of convergence criteria

     Commission President Jean-Claude Juncker appeared to batten down on euro

rejecters in his State of the Union address Wednesday, saying that: "The euro is

meant to be the single currency of the European Union as a whole".

     But despite the weight of expectation heightened by Juncker, the bloc has

no legal recourse to force countries to be part of the club, so those dragging

their feet -- Poland, for example -- can't be forced into action.

     There are some enthusiasts, however.

     "One country from which we see the most interest is Bulgaria," Dombrovskis

said.

     To qualify, though, countries needed to "actively work", including joining

the exchange rate mechanism as a prerequisite.

     Perennial euro rebels the UK are set to leave the bloc. Denmark also has a

special deal to avoid the -- admittedly unenforced -- obligation to eventually

join.

--MNI Brussels Bureau; +44 203-865-3851; email: tara.oakes@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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