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Central Bank Independence in Southeastern Europe with a View to Future EU Accession

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Abstract

The paper provides a qualitative overview on current central bank legislation in Southeastern Europe (SEE), namely Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Romania, and Serbia and Montenegro, and assesses the degree of central bank independence (CBI) already achieved, using the Maastricht Treaty requirements as a yardstick. The following aspects of legal CBI are examined: first, the definition of statutory objectives in central bank laws (functional independence); second, the central banks independence in the formulation and implementation of monetary policy (institutional independence); third, the legal status of the central bank governor and other members of the highest decision-making body (personal independence). Fourth, the paper examines two aspects of financial independence, namely the budgetary independence of the central bank itself and the prohibition of monetary financing. Fifth, the paper briefly deals with central bank accountability issues. Moreover, selected aspects of actual CBI are analyzed. The paper concludes that the central bank laws already comply with Treaty requirements in some areas, while a considerable number of weaknesses remain. With a view to future EU accession, a further strengthening of both legal and actual CBI will be necessary for the countries to fulfill the requirements of the Maastricht Treaty.

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  • Sandra Dvorsky, 2004. "Central Bank Independence in Southeastern Europe with a View to Future EU Accession," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 50-75.
    • Handle: RePEc:onb:oenbfi:y:2004:i:2:b:1
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    1. International Monetary Fund, 1991. "Central Bank Independence: Issues and Experience," IMF Working Papers 1991/058, International Monetary Fund.
    2. Sylvester C. W. Eijffinger & Marco Hoeberichts, 2002. "Central Bank Accountability and Transparency: Theory and Some Evidence," International Finance, Wiley Blackwell, vol. 5(1), pages 73-96.
    3. repec:zbw:bofitp:2000_013 is not listed on IDEAS
    4. Eijffinger, S.C.W. & Hoeberichts, M.M. & Schaling, E., 1998. "A Theory of Central Bank Accountability," Other publications TiSEM 5741a56f-3a69-41f4-b9fb-4, Tilburg University, School of Economics and Management.
    5. Cukierman, Alex & Miller, Geoffrey P. & Neyapti, Bilin, 2002. "Central bank reform, liberalization and inflation in transition economies--an international perspective," Journal of Monetary Economics, Elsevier, vol. 49(2), pages 237-264, March.
    6. Manfred Neumann, 1991. "Precommitment by central bank independence," Open Economies Review, Springer, vol. 2(2), pages 95-112, June.
    7. Cukierman Alex, 1992. "Central Bank Strategy, Credibility, And Independance: Theory And Evidence," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 3(4), pages 1-10, December.
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    1. repec:onb:oenbfi:y:2009:i:0:b:11 is not listed on IDEAS
    2. Thomas Gruber & Doris Ritzberger-Grünwald, 2005. "The Euro Changeover in the New Member States - A Preview," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 52-75.
    3. Sandra Dvorsky, 2009. "Central Banks in Transition: Legal and Institutional Challenges on the Way to EU Integration," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 5, pages 82-91.
    4. Damir Piplica & Ivo Speranda & Zvonimir Josip Perkovic, 2018. "Some Aspects of Actual CBI and Inflation in the Countries of Southeast Europe," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 14(2), pages 41-57.
    5. Anita Angelovska - Bezhoska, 2018. "Central bank independence-the case of the National Bank of Republic of Macedonia," Working Papers 2018-01, National Bank of the Republic of North Macedonia.

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