Why not euroisation?

The debate about unilateral euroisation (i.e. the unilateral adoption of the euro as legal tender) that emerged in CEECs at the end of the 1990s has finally ebbed in 2000 following the very negative reaction of the EU officials. We argue, however, that we may potentially see a renewal of the debate in the future if the institutional path set by EU to introduce the euro is not modified. Indeed, both the political and the economic context are now radically different from the ones existing in 2000. In this paper, two main lines of argument are developed. First, the credibility of (implicit) sanctions in the event of unilateral euroisation is currently very low, even nil, because acceding countries are now de facto economically and politically integrated into the EU. Second, the recent economic slowdown and a recovery that has not been as strong and fast as expected, have resulted in a halt to the nominal convergence process that may delay their entry in EMU. Given the risk of unilateral euroisation, we argue that either consensual euroisation or, at least, a relaxation of nominal convergence criteria would be a better option from the viewpoint of both current and future members of EU.