On 1 January 2007, Slovenia entered the Euro Area as the first of the ten new EU member states. By means of simulations with
SLOPOL6, a macroeconometric model of the Slovene economy, this paper examines which macroeconomic effects can be expected
from this event. It is shown that Euro Area accession brings about temporarily higher real GDP growth, a permanently higher
GDP level, more employment, temporarily lower inflation and a permanently lower price level. On the other hand, both public
finances and the current account deteriorate.