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EMU Accession Issues in Baltic Countries

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  • Raoul Lättemäe

Abstract

After joining EU, the accession countries are expected to join the EMU and the euro-area. This cannot take place immediately after EU enlargement, as prior joining euro-area the accession countries should apply to the European Commission for entering EMU stage three and fulfil Maastricht convergence criteria’s. There is no deadline, when accession countries should make the decision to join euro-area. However, there is no opt-out clause for accession countries either, like there was for Denmark and UK in 1999. All accession countries are expected to join the monetary union in some stage. This paper analyses briefly the EMU accession issues in Baltic countries. In addition, a formal inspection of the OCA criteria in Baltic countries is carried out, using the structural VAR methodology. The results of Baltic countries are compared with the results of other accession countries and EU countries.

Suggested Citation

  • Raoul Lättemäe, 2003. "EMU Accession Issues in Baltic Countries," Eastward Enlargement of the Euro-zone Working Papers wp17a, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 May 2003.
    • Handle: RePEc:ezo:ezppap:wp17a
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    Cited by:

    1. Minea, Alexandru & Rault, Christophe, 2011. "External monetary shocks and monetary integration: Evidence from the Bulgarian currency board," Economic Modelling, Elsevier, vol. 28(5), pages 2271-2281, September.
    2. Fidrmuc, Jarko & Korhonen, Iikka, 2006. "Meta-analysis of the business cycle correlation between the euro area and the CEECs," Journal of Comparative Economics, Elsevier, vol. 34(3), pages 518-537, September.
    3. Sandrine Levasseur, 2008. "Updating empirical evidence on business cycles synchronization between CEECs and euro area : how important is the recent period," SciencePo Working papers Main hal-00973040, HAL.
    4. Marko Malovic & Malisa Djukic & Srdjan Redzepagic, 2011. "Maastricht Criteria at the Age of 18: Are They Converging, Which Party and to What End?," Book Chapters, in: Mirjana Radovic Markovic & Srdjan Redzepagic & João Sousa Andrade & Paulino Teixeira (ed.), Serbia and the European Union: Economic Lessons from the New Member States, edition 1, volume 1, chapter 1, pages 11-26, Institute of Economic Sciences.
    5. repec:hal:spmain:info:hdl:2441/6141 is not listed on IDEAS

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    Keywords

    Regional Input; Optimum Currency Area; VAR;
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