On 28 June 2004, the tolar was pegged against the euro in the ERM II, the European Union exchange rate mechanism.

The timescale for conversion from the tolar to the euro operated differently from the first wave of European Monetary Union (EMU).

Unlike the first wave of EMU, this period was only a day (the conversion rates were fixed on 31 December 1998 and euro non-cash payments were possible from 1 January 1999).

The coins were designed by Miljenko Licul and Zvone Kosovelj and featured reliefs of animals by Janez Boljka.

[3] These notes all feature Triglav, the tallest mountain in Slovenia, on the front, and the Prince's Stone, honeycomb pattern, and Carniolan honey bee on the back.