START

1. REVALUATION OF A CURRENCY/THE EURO ERM: What do you know about the revaluation of a currency? What do you know about the euro ERM (Exchange rate Mechanism)? Who does it affect? Which countries are hoping to join the euro? Go round the room swapping stories. Change partners often.

2. DICTATION: The teacher will read some of the article slowly and clearly. Students will write down what they hear. The teacher will repeat the passage slowly again. Self correct your work from page 2 - filling in spaces and correcting mistakes. Be honest with yourself on the number of errors. Advise the teacher of your total number of errors. Less than 5 is very good. 10 are acceptable. Any more is room for improvement! More than 20 - we need to do some work!

3. READING: Get students to read the passage aloud. Swap readers every paragraph.

4. VOCABULARY: Students look through the article. Underline/highlight any vocabulary you do not know. Look in dictionaries. Discuss and help each other out. The teacher will go through & explain any words or phrases you do not understand.

5. EXPLAIN: Explain the following: a stable exchange rate / not ruling out / remark / debt and budget deficits / eurozone / devalued / revaluation / upward pressure / creates inflationary pressures / exchange rate cushion / budget discipline / year on year /  mount / EU executive arm / fuelled by energy prices / another “Slovenia” / invaluable / extraordinary / urged tighter / have sparked market speculation / fuelled by energy / are keen to avoid / gains

6. QUICK ECONOMIC DISCUSSION: With your partner discuss the meaning of the following economic points:                                                                      

How will they affect the economy of your country?

7. ARTICLE QUIZ: With your partner or in small groups: (1 point for each correct answer. Lose ½ point if you look at the article for help!)                                              

Student A                                                                                             

1)         Who was meeting who?                                                                

2)         Whose backing is invaluable?                                                       

3)         What creates inflationary pressures?                                               

4)         Who hopes to become part of the eurozone from 2009?                            

5)         Who was optimistic?                                                                          

6)         Sum up Junkers comments                                                                  

7)         What is the European Commission concerned about?                                   

8)         What was Slovakia’s inflation rate in January?                                     

9)         What fuelled Slovakia’s inflation rate in January?                                     

10)         What were EU officials keen to avoid?                                                              

Student B                                                                          

1)         What reached a 13-month high in January?                                         

2)         Name the Slovak Finance Minister                                                            

3)         What happened in March 2007?                                                      

4)         What is Jean-Claude Junker?                                                            

5)         Why did Slovakia revalue the crown in March 2007?                           

6)         What reached record highs?                                                                       

7)         What will Fico introduce if needed?                                                           

8)         Who can invite Slovakia into the eurozone?                                       

9)         Which city did the meeting take place in?                                                 

10)         What has the EU executive arm urged? 

8. UN-SCRAMBLE: Put the following into the right order:                                    

Easy                                                                                            

1)         control Slovakia keep under will inflation                                              

2)         Luxembourg Minister in Finance Slovakia’s was                              

3)         powerful a eurozone is figure Junker                                                     

4)         pressures creates strong growth Slovakia’s inflationary                    

5)       needs criteria Union meet to European Slovakia                                                  

Harder                                                                                             

6)         difficult comment this to is it issue on                                                  

7)         on high inflation year a hit year                                                        

8)         deficit already cuts made tight has Slovakia budget                                  

9)         another keen EU avoid officials to “Slovenia” were                             

10)         reached in inflation entry 6.4% euro January since                                                       

(Answers are on page 15)     

9. CROWN APPRECIATION: Swap partners! Think of three advantages and disadvantages of the Slovak Crown appreciating. Compare and discuss with your partner(s).

The teacher will choose some pairs to discuss in front of the class.

10. QUICK DEBATE: Students A believe the Slovak crown should be revalued by the National Bank of Slovakia as soon as possible. Explain why. Students B believe the crown shouldn’t. Explain why. 

11. WORLD CURRENCIES: Look at each of the following currencies. With your partner talk about each one. Which is the strongest? Which is the most volatile? Where / Which country will you find each currency? Have any of these currencies undertaken a revaluation recently? If yes, why? If no, should they? Why?

12. CURRENCY APPRECIATION: With your partner on the board write as many words to do with ‘Currency appreciation’ as you can. One-two minutes. Compare with other teams. Discuss together – linking your words.

13. SENTENCES: Choose six/nine of the words from no 12. Write two/three sentences using two/three words in each. Underline your chosen words. The teacher will if necessary correct your work. Students might be asked to read their sentences aloud.

14. SENTENCE STARTERS: With your partner(s), finish these sentence starters. Change partner(s) and talk about the sentences you made.

a)   Another revaluation ______________________________________________

b)   The ERM  ______________________________________________________

c)    The euro ______________________________________________________

d)   The crown _____________________________________________________

e)   Inflation _______________________________________________________

f)     Market speculation  ______________________________________________

AFTER READING / LISTENING

1. TRUE / FALSE: After reading the article guess whether these sentences are true (T) or false (F):

2. SYNONYM MATCH: Match the following synonyms from the article:

3. PHRASE MATCH: Match the following phrases from the article:

GAP FILL: READING

Put the words into the gaps in the text.

GAP FILL: LISTENING:

Listen and fill in the spaces.

Luxembourg visit prompts possible Slovak crown revaluation

Slovakia’s Finance Minister Jan Pociatek said on Thursday in Luxembourg that _________________ out another “revaluation” of his countries currency. The remark helped _________________ record highs against the euro of 32.525. Asked by reporters in Luxembourg if he was considering _______________ whether it would make sense Pociatek said, “It is difficult to comment on this issue _________________ possibility cannot be ruled out.” Slovakia hopes to become the 16^th member of the eurozone from 2009. ________________ European Union criteria including a stable exchange rate, low interest rates and inflation, and debt and budget deficits below EU thresholds. While EU rules do not allow for a currency to be devalued while in the ERM-2 revaluation ________________. Slovakia already revalued the ERM-2 peg by 8.5% to 35.4424 per euro in March 2007 because of upward pressure on the currency from years of GDP growth, large productivity gains and strong foreign investment.

Slovakia’s strong growth creates ______________________. The European Commission is concerned that once the exchange rate cushion is gone, inflation pressure may mount. The EU executive arm has therefore urged tighter Slovak budget discipline to keep inflation under control.  But Slovakia has already made tight budget ____________________ Commission remarks have sparked market speculation that Slovakia could again revalue the crown, possibly ____________________ conversion rate to the euro is set in mid-year, if the country is accepted into the single currency area. Year on year inflation hit a 13-month high of 3.8% in January, fuelled by energy and food prices, but its 12-month average inflation - the measure used for euro entry – ___________________ limit of the average of the 3 best EU performers plus 1.5%. ________________ keen to avoid another “Slovenia” where inflation ________________ reached 6.4% in January.

DISCUSSION

STUDENT A’s QUESTIONS (Do not show these to student B)

a)   Did the headline make you want to read the article?

b)   Are you interested in economics?

c)    Do you think Slovakia should join the euro?

d)   Did you study economics at school or university?

e)   What is inflation?

f)     How does the revaluation of a currency affect employment opportunities?

g)   What does revaluation do for imports and exports?

h)   In your view what are the prospects for Slovakia joining the euro?  

i)     Is revaluation the best way to tackle inflation?

j)     If Slovakia joins the euro do you think prices there will increase a lot?

$---------------------------------------------------------------------

STUDENT B’s QUESTIONS (Do not show these to student A)

a)   Does your country encourage strong foreign investment?

b)   Who are the three biggest foreign investors in your country?

c)    What is the tax rate in your country?

d)   Does this tax rate encourage foreign investment?

e)   How will your holiday be affected if your currency appreciates?

f)     What happens if your currency depreciates?

g)   How does your currencies exchange rate today compare to recent years against other currencies like the dollar/yen/euro/pound etc…?

h)   Is inflation high in your country?

i)     What can be done to curb inflation?

j)     Did you like this discussion?

AFTER DISCUSSION: Join another partner / group and tell them what you talked about.

a.   What was the most interesting thing you heard?

b.   Was there a question you did not like?

c.    Was there something you totally disagreed with?

d.   What did you like talking about?

e.   Which was the most difficult question?

SPEAKING

ROLE PLAY: PRESS CONFERENCE:

In pairs or small groups:                                                           

You are at a press conference in Luxembourg. One of you is Slovak Finance Minister Jan Pociatek. The other(s) is/are a reporter/reporters from (a)local radio station(s).

The Slovak Finance Minister has to give a short speech about his country possibly joining the euro, a possible revaluation of the Slovak Crown and his country possibly meeting EU criteria for joining the euro.

The reporter(s) has/have to prepare 3 questions to ask the Slovak Finance minister.                                                                                                                                                                                                    The teacher may ask some groups/pairs to role play in front of the class

LANGUAGE: CORRECT WORD: Choose the correct words from a–d below and write them in the article.

Slovakia’s Finance Minister Jan Pociatek said on (1)__ in Luxembourg that he was not (2)__ out another “revaluation” of his countries currency. The remark helped send the crown to record highs against the euro of 32.525. Asked by reporters in Luxembourg if he was considering such a move and whether it would make sense Pociatek said, “It is difficult to comment on (3)__ issue in detail but the possibility cannot be ruled out.” Slovakia hopes to become the 16^th member of the eurozone from 2009. It needs to meet European Union criteria including a stable exchange rate, low interest (4)__ and inflation, and debt and budget deficits below EU thresholds. While EU rules do not allow for a currency to be devalued while in the ERM-2 revaluation is not a problem. Slovakia (5)__ revalued the ERM-2 peg by 8.5% to 35.4424 per euro in March 2007 because of upward pressure on the currency from years of GDP growth, large productivity gains and strong foreign investment.

Slovakia’s strong growth creates inflationary pressures. The European Commission is concerned that once the exchange rate cushion is gone, inflation pressure may mount. The EU executive (6)__ has therefore urged tighter Slovak budget discipline to keep inflation under control.  But Slovakia has already made tight budget deficit cuts and the Commission remarks have sparked market speculation that Slovakia could again revalue the crown, possibly at the time when the conversion rate to the euro is set in mid-year, if the country is accepted into the single currency area. Year on year inflation hit a 13-month high of 3.8% in January, (7)__ by energy and food prices, but its 12-month average inflation - the measure used for euro entry – was still (8)__ the limit of the average of the 3 best EU performers (9)__ 1.5%. EU (10)__ are keen to (11)__ another “Slovenia” where inflation since euro entry (12)__ 6.4% in January.

GRAMMAR 1: MIDWAY

Put the words into the gaps in the text.

GRAMMAR 2: EASY

Put the words into the gaps in the text.

HOMEWORK

1. NEWSPAPER ARTICLE: Write an article on “Why Slovakia should join the euro” (Minimum 200 words)

Read what you wrote to your classmates in the next lesson. Which article was best and why?

2. NEWSPAPER ARTICLE: Write an article on “A stable exchange rate, low interest rates and inflation” (Minimum 200 words)

WRITING: IN CLASS:

1. FIVE MINUTE ARTICLE: Write an article on “A stable exchange rate, low interest rates and inflation.” You have five minutes. Afterwards swap articles with your partner. Read through their article and correct any mistakes. The teacher will select some students to read out their work.

Countdown: Every minute the teacher may say, “You have xx minutes.”

2. FIVE MINUTE ARTICLE: Write an article on “Why Slovakia should join the euro.” You have five minutes. Afterwards swap articles with your partner. Read through their article and correct any mistakes. The teacher will select some students to read out their work.

Countdown: Every minute the teacher may say, “You have xx minutes.”

SPELLING TEST

The teacher will ask the class individually to spell the following words that are in the article:

ANSWERS: 2

13. UN-SCRAMBLED:                                                                     

Easy                                                                                         

1)         Slovakia will keep inflation under control                                                     

2)         Slovakia’s Finance Minister was in Luxembourg                                    

3)         Junker is a powerful eurozone figure                                             

4)         Slovakia’s strong growth creates inflationary pressures                               

5)         Slovakia needs to meet European Union criteria                                                     

Harder                                                                                             

6)         It is difficult to comment on this issue                                                 

7)         Year on year inflation hit a high                                                      

8)         Slovakia has already made tight budget deficit cuts                             

9)         EU officials were keen to avoid another “Slovenia”                              

10)         Inflation since euro entry reached 6.4% in January

ANSWERS: 1

TRUE / FALSE:

SYNONYM MATCH:

PHRASE MATCH:

GAP FILL: Luxembourg visit prompts possible Slovak crown revaluation: Slovakia’s Finance Minister Jan Pociatek said on Thursday in Luxembourg that he was not ruling out another “revaluation” of his countries currency. The remark helped send the crown to record highs against the euro of 32.525. Asked by reporters in Luxembourg if he was considering such a move and whether it would make sense Pociatek said, “It is difficult to comment on this issue in detail but the possibility cannot be ruled out.” Slovakia hopes to become the 16^th member of the eurozone from 2009. It needs to meet European Union criteria including a stable exchange rate, low interest rates and inflation, and debt and budget deficits below EU thresholds. While EU rules do not allow for a currency to be devalued while in the ERM-2 revaluation is not a problem. Slovakia already revalued the ERM-2 peg by 8.5% to 35.4424 per euro in March 2007 because of upward pressure on the currency from years of GDP growth, large productivity gains and strong foreign investment. Slovakia’s strong growth creates inflationary pressures. The European Commission is concerned that once the exchange rate cushion is gone, inflation pressure may mount. The EU executive arm has therefore urged tighter Slovak budget discipline to keep inflation under control.  But Slovakia has already made tight budget deficit cuts and the Commission remarks have sparked market speculation that Slovakia could again revalue the crown, possibly at the time when the conversion rate to the euro is set in mid-year, if the country is accepted into the single currency area. Year on year inflation hit a 13-month high of 3.8% in January, fuelled by energy and food prices, but its 12-month average inflation - the measure used for euro entry – was still below the limit of the average of the 3 best EU performers plus 1.5%. EU officials are keen to avoid another “Slovenia” where inflation since euro entry reached 6.4% in January.

LANGUAGE WORK