Central and Eastern European Countries and the Advent of the Euro: Is Euro-isation a Good Idea ?

  • Koen Schoors

Abstract

The Euro will affect CEEC (Central and Eastern European countries) well before their accession to the EU. There has been some speculation about the question whether the CEEC first wave entrants (the Czech Republic, Estonia, Hungary, Poland, and Slovenia) should enter the EMU at the occasion of their accession to the EU. There has been suggested that the EU should not expect EMU-accession right away. The European Commission itself mentions that “… they are not expected to join the European Monetary Union directly, because of formal and substantial reasons” (European Commission, 1998, p. 135). Therefore we do not limit ourselves to the accession of the CEEC to the EU and EMU but also focus on the question how the CEEC should react on the advent of the Euro. Section 2 focuses on the question whether the CEEC should link their respective currencies to the Euro or not. In section 3 we analyse whether it might be interesting and feasible for some CEEC to adopt the Euro unilaterally, before accession or even without reference to accession at all. We address the question what role the EU could should play in this process and show that there is scope for a gamble for sustainable Euro-isation. Section 4 summarises and concludes.

Keywords

Europe Income Argentina Defend Romania 

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Copyright information

© Springer Science+Business Media New York 2000

Authors and Affiliations

  • Koen Schoors
    • 1
  1. 1.Ghent UniversityBelgium

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