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Feasibility And Timing Of The Euro Adoption By The New Eu Member States, Lucjan Orlowski
Feasibility And Timing Of The Euro Adoption By The New Eu Member States, Lucjan Orlowski
WCBT Faculty Publications
The 10 new member states are now facing the challenge of framing and implementing policies for adopting the euro. They are all bound by the EU Treaty to replace their national currencies with the euro at some future time as they were admitted to the Union with a derogation to this effect. In order to prepare adequately for entry to the euro area, the candidates need to undergo fiscal and monetary convergence. In principle, they should refrain from lax fiscal policies that could skew the eurozone policy mix by forcing the European Central Bank (ECB) to tighten monetary policy. They …