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The Eastward Enlargement of the Eurozone - State of the Art Report

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Author Info
Michael Bolle () (Jean Monnet Centre of Excellence, Freie Universitaet Berlin)
José Caétano (Departemento de Economia, University of Évora)
Jaakko Kiander (Government Institute of Economic Research (VATT) Helsinki)
Vladimir Lavrac (Institute of Economic Research (IER) Ljubljana)
Renzo Orsi (Dipartemento di Scienze Economiche, University of Bologna)
Tiiu Paas (Oeconomicum, University of Tartu)
Katarzyna Zukrowska (Institute of International Studies, Warsaw School of Economics)

Additional information is available for the following registered author(s):

Abstract

European Monetary Union (EMU) and its enlargement to prospective members in central and eastern Europe is a politically highly desired process, given that everything works out smoothly. The future eurozone will show a much higher degree of heterogeneity than now. The CEEC are in the process of transition from a planned to a market economy. Despite considerable progress during the past decade, much remains to be done in economic, social, and political terms. However, it is important to note that monetary integration is not a stand alone project, but is preceded by the EU enlargement and its obligation to adopt the acquis communautaire. Both events will be mutually reinforcing: The acquis contains numerous rules and institutions to be followed or created by the prospective members, albeit enforcement will be a problem. The success of the eastward enlargement of the eurozone depends on these institutions and, thus, increases the costs of failure. On the other hand, a successfully introduced euro in the CEEC will facilitate the whole integration process.

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Paper provided by Free University Berlin, Jean Monnet Centre of Excellence in its series Eastward Enlargement of the Euro-zone Working Papers with number wp02.

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Length: 93 pages
Date of creation: 01 Jan 2002
Date of revision: 01 Jan 2002
Handle: RePEc:ezo:ezppap:wp02

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Keywords: EMU; EU enlargement; monetary integration; state of the art report;

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