Occasional Papers

Adopting the Euro in Central Europe: Challenges of the Next Step in European Integration

April 14, 2005

Preview Citation

Format: Chicago

Adopting the Euro in Central Europe: Challenges of the Next Step in European Integration, (USA: International Monetary Fund, 2005) accessed December 23, 2024

Summary

Upon entry into the European Union, countries become members of the Economic and Monetary Union (EMU), with a derogation from adopting the euro as their currency (that is, each country joining the EU commits to replace its national currency with the euro, but can choose when to request permission to do so). For most of these countries, adopting the euro will entail major economic change. This paper examines likely economic developments and policy challenges for the five former transition countries in central Europe--the Czech Republic, Hungary, Poland, the Slovak Republic, and Slovenia--that joined the European Union in May 2004 and operate under independent monetary policies but have not yet achieved policy convergence with the rest of the euro area.

Subject: Credit, Economic integration, Exchange rates, Fiscal consolidation, Fiscal policy, Foreign exchange, Inflation, Monetary unions, Money, Prices, Real exchange rates

Keywords: Adoption strategy, Baltics, CECs FDI, Credit, ECB financing, ECB intervention, ECB-financed intervention, ERM2, EU membership, Euro, Euro adoption, Euro candidate, Europe, Exchange rate, Exchange rates, Fiscal consolidation, Global, Inflation, Inflation-targeting regime, Monetary unions, OP, Real exchange rates, Southern Europe, Western Europe

Publication Details

  • Pages:

    148

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Occasional Paper No. 2005/004

  • Stock No:

    S234EA

  • ISBN:

    9781589063501

  • ISSN:

    0251-6365

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