EIRP Proceedings, Vol 5 (2010)
An Appraisal on the Earlier Euro Adoption by the new Member States in the Frame of the Current Global Economic and Financial Crisis
Abstract
The pathway of the new member states towards the euro area was stopped, but not modified by the current world economic crisis. Their inflation declined but the fiscal status suffered. On the verge of the financial crisis, the European Central Bank overruled the Central and Eastern European member states' intentions for an earlier adoption of the euro, requiring compliance with the Maastricht criteria. The objective of this paper is to analyze the main proposed solutions and to draw attention on the most suitable ones in keeping with the particular features of these countries. Our conclusion is that fast results on the euro adoption will definitely depend on the fiscal consolidation, the soundness of global economic rehabilitation, the capital availability, and the domestic policies. The nature of the approached problems and the authors' experience
recommend this study, both for researchers and practitioners.
recommend this study, both for researchers and practitioners.
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