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Economic and Monetary Union in the Accession Countries - Political and Economic Contexts

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  • Maria Dunin-Wasowicz
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    Abstract

    The EU-25 will start operating on May 1, 2004. This paper reviews the position of the new Member States (NMS) in the Economic and Monetary Union (EMU) with respect to future adoption of euro. It argues that further integration in this area is much more about the deepening of the political integrity of the EU than about lowering transaction costs. However, a debate on the political and economic implications resulting from the adoption of euro by the NMS is full of unsolved issues. The central one is to define the possible scenario of the path to the euro. It implies actions on both sides: the NMS need to implement many economic reforms and enhance the political debate on the benefits of the euro adoption. The EU side must proceed with reforms, including the redefinition of the Stability and Growth Pact. The lack of reforms may hamper the political position of the EU.

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    Bibliographic Info

    Article provided by University of Economics, Prague in its journal Prague Economic Papers.

    Volume (Year): 2004 (2004)
    Issue (Month): 2 ()
    Pages: 99-114

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    Handle: RePEc:prg:jnlpep:v:2004:y:2004:i:2:id:233:p:99-114

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    Related research

    Keywords: public opinion; euro; EMU criteria; EMU; adoption of the euro; accession countries;

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    References

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    1. Buti, M. & Eijffinger, S.C.W. & Franco, D., 2003. "Revisiting the Stability and Growth Pact: Grand Design or Internal Adjustment?," Open Access publications from Tilburg University urn:nbn:nl:ui:12-176184, Tilburg University.
    2. Robert Alan Feldman & Heliodoro Temprano-Arroyo, 1998. "Selected Transition and Mediterranean Countries," IMF Working Papers 98/82, International Monetary Fund.
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