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EU Accession and the Euro: Close Together or Far Apart?

  • Peter B. Kenen

    ()

    (Princeton University)

  • Ellen E. Meade

    (London School of Economics)

In May 2004, ten countries are due to join the European Union. They are therefore obliged to join the European Monetary Union (EMU) and adopt the euro as their national currency. Most of them, moreover, have been eager to do that. None of them sought an opt-out of the sort that Britain and Denmark obtained in 1991, when the Maastricht Treaty was drafted. Membership in EMU is not automatic, however, because the accession countries must first satisfy the preconditions contained in the Maastricht Treaty. Although those preconditions are rigorous, and some of the accession countries are still far from meeting them, most of those countries have indicated that they want to enter EMU at the earliest possible date.

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Paper provided by Peterson Institute for International Economics in its series Policy Briefs with number PB03-09.

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Date of creation: Oct 2003
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Handle: RePEc:iie:pbrief:pb03-09
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  1. Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
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