On the Fast Track to EU Accession: Macroeconomic Effects and Policy Challenges for Estonia

November 1, 1999

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Format: Chicago

Günther Taube, and Rene Weber. On the Fast Track to EU Accession: Macroeconomic Effects and Policy Challenges for Estonia, (USA: International Monetary Fund, 1999) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper assesses the macroeconomic impact and policy challenges related to Estonia’s prospective accession to the EU and its potential adoption of the euro. Our analysis of the trade, financial, and fiscal channels includes a model-based illustrative scenario using MULTIMOD. We conclude that the welfare enhancing effects for Estonia of further EU integration are likely to outweigh the drawbacks of more pronounced macroeconomic imbalances that could accompany this process. To smooth Estonia’s accession-related adjustment, its fiscal and structural policies should be geared toward mitigating domestic demand pressures, promoting saving, and ensuring efficient public investment.

Subject: Expenditure, Exports, Fiscal policy, Imports, International trade, Tariffs, Taxes

Keywords: Baltics, Common market, Eastern Europe, Economic integration, Estonia, EU accession, EU country, EU membership, EU regulation, EU request, EU transfer, Exports, Imports, Tariffs, Transition, Western Europe, WP

Publication Details

Pages:

41
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1999/156
Stock No:

WPIEA1561999
ISBN:

9781451857382
ISSN:

1018-5941

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