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Macroeconomic aspects of Croatia's accession to the European Union

In: Croatian Accession to the European Union: Economic and Legal Challenges

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Author Info
Dubravko Mihaljek (Bank for International Settlements, Basel)
Abstract

This paper analyses the main macroeconomic conditions for joining the EU and the European Monetary Union (EMU), the readiness of the Croatian economy to meet these conditions, and the main challenges for economic policy on the road to these integrations. Croatia does not lag significantly behind the other CEE countries in fulfilling the criteria for EU and EMU membership. It has certain advantages with respect to the criteria of macroeconomic stability (with the exception of the budget deficit), investment efficiency, and potential growth. However, delays in the implementation of some structural reforms, in particular the development of a securities market are estimated at about four years. The main challenges for economic policy in the run-up to EU and EMU are expected to be reducing the budget deficit and stabilising the public debt. Moreover, macroeconomic policies should remain prudent so as to strengthen external stability and maintain favourable conditions for growth.

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This chapter was published in: Katarina Ott (ed.) Croatian Accession to the European Union: Economic and Legal Challenges, , chapter 2, pages 25-65, 2003.

This item is provided by Institute of Public Finance in its series Chapters in books with number 1-02.

Handle: RePEc:ipf:chaptr:1-02

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Related research
This chapter was published in the following book, which is listed on IDEAS:
Katarina Ott (ed.), 2003. "Croatian Accession to the European Union: Economic and Legal Challenges," Books on Croatian accession to the European Union, Institute of Public Finance, volume 1, number 1, May. [Downloadable!]
Keywords: Croatian economy Central European economies enlargement of the EU transition convergence to the EMU economic growth inflation external stability budget deficit public debt

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