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Financial Integration and the New EU Member Countries: Challenges and Dilemmas

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  • Antonín Rusek

Abstract

Real convergence is the key economic challenge for the new EU Member Countries. The main growth area today is the "new" entrepreneurial economy of creativity and innovation. But such an economy needs a financial structure capable of coping with the higher risk inherent in the "new" economy. To provide such a financial structure, the financial markets must be broad, deep and liquid, i.e. financial markets must be large enough to provide this financial structure. Hence, the financial integration became an imperative for the new Member Countries. But this integration process possesses both economic and political challenges and dilemmas. Answers to those challenges and dilemmas will then determine the degree of real convergence - and hence the degree of economic success - for each new Member State.

Suggested Citation

  • Antonín Rusek, 2005. "Financial Integration and the New EU Member Countries: Challenges and Dilemmas," Prague Economic Papers, Prague University of Economics and Business, vol. 2005(1), pages 17-32.
    • Handle: RePEc:prg:jnlpep:v:2005:y:2005:i:1:id:250:p:17-32
    DOI: 10.18267/j.pep.250
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    Cited by:

    1. GANIĆ Mehmed, 2020. "Are Determinants Of International Financial Integration In The European Transition Countries Different From Post-Transition Countries?," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 15(1), pages 40-54, April.
    2. Zuzana Kučerová, 2013. "Financial and trade integration in the EU countries," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(4), pages 981-993.

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    More about this item

    Keywords

    financial sector; real convergence; financial integration; new EU Member Countries; 'new' economy;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F39 - International Economics - - International Finance - - - Other
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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