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Enlargement of the euro area toward CESEE: progress and perspectives

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Abstract

This article reviews the enlargement of the euro area toward CESEE EU Member States since 2010. It covers the Baltic countries’ accession to monetary union and summarizes the present state of convergence of non-euro area CESEE EU Member States, with a focus on the economic convergence criteria. Furthermore, it depicts the current views of these countries on future euro area accession. We show how convergence assessments have developed since the onset of the crisis and examine the impact of the deepening of Economic and Monetary Union on the monetary integration process. Looking ahead, the article argues for an even-handed application of the principle of equal treatment in an advancing environment, which combines continuity with a careful and well-grounded integration of the lessons from the past and the institutional reforms that have resulted as a consequence, for the mutual benefit of all stakeholders in the process.

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  • Peter Backé & Sandra Dvorsky, 2018. "Enlargement of the euro area toward CESEE: progress and perspectives," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q3-18, pages 43-56.
    • Handle: RePEc:onb:oenbfi:y:2018:i:q3-18:b:4
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    1. Rey, Hélène, 2015. "Dilemma not Trilemma: The Global Financial Cycle and Monetary Policy Independence," CEPR Discussion Papers 10591, C.E.P.R. Discussion Papers.
    2. Diaz del Hoyo, Juan Luis & Dorrucci, Ettore & Heinz, Frigyes Ferdinand & Muzikarova, Sona, 2017. "Real convergence in the euro area: a long-term perspective," Occasional Paper Series 203, European Central Bank.
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    4. Sandra Dvorsky, 2009. "Central Banks in Transition: Legal and Institutional Challenges on the Way to EU Integration," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 5, pages 82-91.
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    7. Rafał Riedel, 2017. "The evolution of the Polish central bank’s views on Eurozone membership," Post-Communist Economies, Taylor & Francis Journals, vol. 29(1), pages 106-116, January.
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    Cited by:

    1. Peter Backé & Elisabeth Beckmann, 2020. "What drives people’s expectations of euro adoption? – Evidence from the OeNB Euro Survey on selected CESEE countries," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q4/20, pages 57-79.
    2. Augusto Cerqua & Roberta Di Stefano & Guido Pellegrini, 2023. "What kind of region reaps the benefits of a currency union?," Journal of Regional Science, Wiley Blackwell, vol. 63(3), pages 552-582, June.
    3. Peter Backé & Elisabeth Beckmann, 2022. "Euro adoption in CESEE: How do financial literacy and trust in institutions affect people’s attitudes?," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q1/22, pages 7-28.
    4. Sebastian Blesse & Annika Havlik & Friedrich Heinemann, 2021. "Euro area reform preferences of Central and Eastern European economic experts," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 48(1), pages 155-179, February.
    5. Grigaliuniene, Zana & Celov, Dmitrij & Hartwell, Christopher A., 2020. "The more the Merrier? The reaction of euro area stock markets to new members," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 66(C).
    6. repec:agr:journl:v:4(621):y:2019:i:4(621):p:5-18 is not listed on IDEAS
    7. Iulian Nicolae VASILOIU, 2019. "Expanding the Eurozone. The stage of economic convergence for Bulgaria, Czech Republic, Croatia, Hungary, Poland and Romania," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(621), W), pages 5-18, Winter.
    8. Blesse, Sebastian & Havlik, Annika & Heinemann, Friedrich, 2019. "Searching for a Euro reform consensus: The perspective from Central and Eastern Europe," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 201191.

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    More about this item

    Keywords

    European Union; euro area; monetary integration; Central; Eastern and Southeastern Europe;
    All these keywords.

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-

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