BRUSSELS, Jan 11 (Reuters) - Estonia is likely to be the next country to join the euro zone, the nominee to be the European Union's next monetary chief said on Monday, boosting the country's hopes of adopting the single currency in 2011.
Olli Rehn suggested at a hearing in the European Parliament that the executive European Commission would in the first half of 2010 assess the Baltic country's readiness to adopt the euro.
"The next likely candidate is Estonia. Public finances are in pretty good shape," he said.
By law, if the evaluation is positive and backed by the EU's 27 finance ministers, Estonia could become the euro zone's 17th member next year.
"Estonia is rather close, but we will have to ensure that all the rules are respected, that the (EU) treaty is respected, and we will return to this matter in the coming spring," Rehn said.
Estonia, a former Soviet country of 1.4 million people, is still struggling with an economic crisis that has hit the Baltic republics especially hard.
Analysts say adopting the euro would boost the country's economy by attracting foreign investors.
To join the euro, Estonia will have to meet criteria on budget deficits, public debt, inflation, long-term interest rates and currency stability. (Reporting by Marcin Grajewski, editing by Dale Hudson)