Slovak euro entry, Czech presidency deepen Czechoslovak split

(PRAGUE) - Former Czechoslovak federation peers made European Union history on Thursday as the Czech Republic took over the EU presidency while Slovakia became the 16th member of the eurozone.

Both central European post-communist countries, which joined the EU separately in 2004 after the federation had split amicably in 1993, took another step apart Thursday.

Slovakia is now surfing on a wave of optimism as a newcomer to the euro club, while the Czechs are facing six months of hard work amid doubts about their capacity to preside over the EU.

About 100,000 people, including a number of tourists, gathered in Bratislava's main square on Wednesday night for a ceremony crowned with midnight fireworks dominated by blue and yellow, the colours of the European Union.

"The 16 years of an independent Slovak Republic have been a success story," Slovak Prime Minister Robert Fico said triumphantly before withdrawing 100 euros from a cash machine in the parliament building.

Slovakia has beaten regional peers Poland, Hungary, and the Czech Republic on the way to the euro by a broad margin. The latter two countries have not set a euro entry date yet.

On the Danube embankment in Bratislava, thousands of people gathered near a large stage under a huge 2009 logo in which the euro signs replaced the zeros. Another euro sign, made of yellow balloons, flew in the sky above.

The Czech Republic, in contrast, held a far more timid celebration of its historical presidency: the deputy prime minister illuminated a pendulum on a hill above Prague with the EU colours with the help of his mobile phone while sitting in a TV studio.

Meanwhile, Czech Prime Minister Mirek Topolanek decided to go for a "private programme" on the last evening of the year, according to his spokesman.

The eurosceptic President Vaclav Klaus, who has described himself as a "European dissident", also failed to appear in public a day ahead of his official New Year's Day speech.

The presidency may turn out to be a tough job for the liberal Topolanek owing to growing opposition from Klaus, who has dismissed the presidency as "unimportant", making foreign media wonder about Czech ability to preside over the EU.

The first challenge will be to tackle a looming stoppage of gas supplies from Russia to Ukraine, which could disrupt supplies to the rest of Europe, and the conflict between Israel and Palestine in the name of the 27 European countries.

Another major concern is the current financial crisis. Both the Czech Republic and Slovakia have largely been spared so far, but the effect of the turmoil on the industry-based countries is already beginning to tell.

While Fico's left-leaning government is hoping the euro will shield the country from the worst of the crisis and help it maintain its rapid growth, his Czech counterpart promotes the koruna currency, saying being independent is not a bad way to handle the crisis.

Last night showed the difference between the Czech sceptics and the euro-happy Slovaks even in the streets.

"I'm happy we have the koruna," said Milos, a Czech man in his thirties, declining to give his surname. "The euro will hurt the poorer Slovaks," he added, walking down a Prague street.

"I feel a step ahead of the Czech Republic. They are more cautious, but we are the first," said 28-year-old Katarina Benczova in Bratislava.