Article: Baltics, Slovenia may lure investment on euro link

Estonia, Lithuania and Slovenia may attract more foreign direct investment after becoming the first Eastern European nations to establish formal links with the euro, said fund managers.

The three nations, with 6.7 million people and a combined economy of US$55 billion, joined the European Union's exchange-rate mechanism on Sunday, agreeing that their currencies will trade at an agreed rate against the euro and paving the way for them to switch to the common currency as early as 2007.

"Entry to the exchange-rate mechanism should trigger some investments that countries of this size otherwise wouldn't get," said J.P. Morgan Fleming analyst Mark Robinson, who manages US$1.6 billion of Eastern ...

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