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Germany’s attitude towards the enlargement of the eurozone

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  • Płóciennik Sebastian

    (Vistula University in Warsaw, Institute of Economics, ul. Stokłosy 3, 02-787Warszawa. Also: Polish Institute of International Affairs (PISM), ul. Warecka 1a, 00-950Warszawa, Poland)

Abstract

The purpose of this paper is to answer the question as to why Germany is cautious towards a faster enlargement of the euro area. The usual explanation focuses on concerns that some of the candidate countries are not economically ready to adopt the common currency and their membership could destabilize the monetary union. However, such an approach does not take into account other factors that may influence Germany’s reluctance to speed up the enlargement process. One of them is the conviction that the existing division of integration does not translate into economic costs and a long-term political cleavage in the EU. Another argument explaining Germany’s position is their doubt about the economic policy preferences of the candidates which may prove to be crucial in the upcoming reform of the euro area governance. Some of them can drift towards more interventionism and support for the debtors’ positions which is at odds with German interest.

Suggested Citation

  • Płóciennik Sebastian, 2021. "Germany’s attitude towards the enlargement of the eurozone," Economics and Business Review, Sciendo, vol. 7(1), pages 47-67, March.
    • Handle: RePEc:vrs:ecobur:v:7:y:2021:i:1:p:47-67:n:7
    DOI: 10.18559/ebr.2021.1.4
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    References listed on IDEAS

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    More about this item

    Keywords

    eurozone; enlargement; Central and Southern Europe; European Union; differentiated integration;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies

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