THE EUROZONE ENLARGEMENT PROSPECT OF NEW EU MEMBER STATES FOR EURO ADOPTION

THE EUROZONE ENLARGEMENT PROSPECT OF NEW EU MEMBER STATES FOR EURO ADOPTION

Library of Congress Cataloging-in-Publication Data

CONTENTS

PREFACE

Chapter 1 CURRENT FINANCIAL SITUATIONS AND EMU EVOLUTION

1. INTRODUCTION

2. EUROPEAN MONETARY INTEGRATION AND CONVERGENCE CRITERIA

3. FINANCIAL INTEGRATION: CEECS AND THE GLOBAL CRISIS SINCE 2008 AND BACKGROUND

3.1. Overview

3.2. Development of CEECs’ Banking Sector

3.2.1. Transition to a Market Economy and Development of the Banking Sector

3.2.2. Banking Structure in CEECs

3.2.3. Credit Demand and Rapid Credit Expansion in CEECs

3.3. The Outbreak of Crisis and Its Repercussions

3.4. The Repercussions of the Crisis on Western Europe

3.5. Policy Responses to the Crisis

3.6. Reinforcement of Intra EU Supervisory and Cooperation System

3.6.1. Reinforcement of Financial Supervision

3.6.2. Vienna Initiative

4. EURO ADOPTION

4.1. Costs and Benefits of Euro Adoption

4.2. Obstacles to Joining the Eurozone

4.2.1. Legislative Convergence of Central Bank Independence

4.2.2. Monetary Policy for Convergence Criteria and Turmoil Regarding Central Bank Independence

4.2.3. Timetable for Euro Adoption and Abandonment

CONCLUSION

REFERENCES

Chapter 2 FROM DINAR TO TOLAR AND FROM TOLAR TO EURO: THE SLOVENIAN EXPERIENCE

1. INTRODUCTION - EURO AND OPTIMAL CURRENCY AREA

2. CREATION OF THE COUNTRY AND THE CURRENCY

3. THE PROBLEMS OF A SMALL CURRENCY AREA

4. BACK TO EUROPE

5. THE COSTS AND BENEFITS OF THE ACCESSION

6. THE CRISIS IN THE BANKING SECTOR

EXPERIMENTS AND OBEDIENCE?

REFERENCES

Chapter 3 SLOVAKIA: ADOPTION OF THE EURO AND AFTER

1. INTRODUCTION

2. BIRTH OF A NATIONAL CURRENCY

3. THE MECIAR REGIME UNTIL 1998

4. DZURINDA AND EU ACCESSION

5. BANKING SECTOR REFORMS

6. COSTS, BENEFITS, AND DISADVANTAGES OF EURO ADOPTION: THE SLOVAK NATIONAL BANK'S PERSPECTIVE

7. SLOVAK PROCESS FOR ADOPTING THE EURO

8. CHANGES IN POLITICAL SITUATIONS AND ECONOMIC POLICIES BEFORE AND AFTER EURO ADOPTION

CONCLUSION

REFERENCES

Chapter 4 SOME LESSONS FROM THE SUCCESSFUL EURO ADOPTION BY THE TWO CEE STATES

1. INTRODUCTION

2. NEW COST-BENEFIT ANALYSIS OF THE EURO ADOPTION AFTER THE EURO ZONE CRISIS

3. LATVIA: CALAMITIES AND SUCCESS

4. SLOVAKIA: LATECOMER’S TRAUMA AND ADVANTAGE

CONCLUSION

REFERENCES

Chapter 5 THE INSTITUTIONAL UNDERPINNINGS OF THE PROSPECTIVE EURO ADOPTION IN POLAND

1. INTRODUCTION

2. REFERENCE FRAMEWORK

3. NOMINAL CONVERGENCE

4. REAL CONVERGENCE

5. INSTITUTIONAL DEVELOPMENT

5.1. Progress in Structural Reforms

5.2. Varieties of Capitalism and the Quality of Selected Institutions

5.3. Product and Labour Markets

5.4. Economic Freedom and Perceived Corruption

5.5. Financial Intermediation

5.6. Science and Technology

CONCLUSION

REFERENCES

Chapter 6 CZECH REPUBLIC - THE PRESENT SITUATION OF A PROSPECTIVE EUROZONE MEMBER: CURRENT CHALLENGES DURING TIME OF CREATIVE DESTRUCTION (A COMPARISON WITH SLOVAKIA AS A EUROZONE MEMBER)

1. INTRODUCTION

2. POLITICAL CHANGES REGARDING THE EURO ADOPTION

3. COMPLIANCE WITH THE NOMINAL CONVERGENCE CRITERIA

3.1. The Czech Republic Is Compliant with the Criterion on Price Stability

3.2. The Czech Republic Is Compliant with the Criterion on the Sustainability of the Government’s Financial Position

3.3. The CR Is Fully Compliant with the Long-Term Interest Rate Criterion

3.4. Criterion on Participation in the Exchange Rate Mechanism

3.5. Assessment of the Czech Republic’s Current Alignment with the Euro Area

4. CZECH REPUBLIC PROGRESS AFTER THE SYSTEM CHANGE AND THE EU ACCESSION

4.1. A Historical Overview

4.2. An Economic Convergence

5. THE CHARACTERISTICS OF FOREIGN TRADE AND INTERNATIONAL COMPETITIVENESS

5.1. Foreign Trade

5.2. Increasing Price and Nonprice International Competitiveness

CONCLUSION

REFERENCES

Periodicals

Chapter 7 HUNGARY’S DIVERGENT WAY TO ADOPT THE EURO

1. INTRODUCTION

2. REFERENCE FRAMEWORK

3. NOMINAL, REAL AND INSTITUTIONAL CONVERGENCE

3.1. Nominal Convergence

3.2. Real Convergence

3.3. Institutional Development

Progress of Structural Reforms

The Quality of Selected Institutions

Product and Labour Markets

Economic Freedom and Corruption

Financial Intermediation

Science and Technology

3.4. Summary

4. THE EURO ADOPTION IN HUNGARY FROM THE TRANSFORMATION PERSPECTIVE

4.1. Transformation from the EU Accession, and Global Economic and Financial Crisis to the Effect of the Euro Crisis

4.2. Fidesz and a Divergent Way to Adopt the Euro

CONCLUSION

REFERENCES

Chapter 8 CROATIA’S CHALLENGES REGARDING THE ADOPTION OF THE EURO

1. INTRODUCTION

2. CROATIA’S PROGRESS AFTER THE SYSTEM CHANGE AND ITS INDEPENDENCE

2.1. A Historical Overview

2.2. Problems of the Economic Development Model

2.3. The Second Greece?

3. CHARACTERISTICS OF FOREIGN TRADE

3.1. Structure of Foreign Trade

3.2. Declining International Competitiveness

3.3. Problems of Exchange Rate Regime

4. ALTERNATIVE POLICIES UNTIL THE EURO ADOPTION

4.1. Exchange Rate Policy and Monetary Policy

4.2. Importance of Industrial Policy

CONCLUSION

REFERENCES

Periodicals

Chapter 9 EURO ADOPTION IN ROMANIA: MOVING FASTER OR MOVING SLOWER?

1. INTRODUCTION

2. SOME THEORETICAL CONSIDERATIONS REGARDING THE NOMINAL AND REAL CONVERGENCE IN THE EU

3. MAASTRICHT NOMINAL CONVERGENCE CRITERIA ARE ALREADY FULFILLED BY ROMANIA. IS THAT ENOUGH?

3.1. A Moving Euro-Target Date?

3.2. Romania – Face to Face with the Maastricht Criteria and the Macroeconomic Imbalance Procedure Mechanism

The Fulfillment of the Maastricht Criteria

Results of the In-Depth Review of Romania’s Macroeconomic Imbalances

4. ROMANIA BETWEEN NOMINAL AND REAL CONVERGENCE

4.1. Romanian Real Income Per Capita Convergence towards the EU Average – How Fast and How Soon?

Romania’s Real Income Convergence against the EU Average

4.2. Macroeconomic Stability in Romania Before and After the Crisis

4.3. Beyond the Macroeconomic Stability. Face to Face with Romanian Economy’s Competitiveness Risks

CONCLUSION

REFERENCES

Chapter 10 EURO ADOPTION IN BULGARIA: OPPORTUNITIES AND CHALLENGES

1. INTRODUCTION

2. BULGARIA’S STRATEGY FOR PARTICIPATION IN THE ERM II AND FOR THE EURO ADOPTION

3. FULFILLMENT OF THE MAASTRICHT CONVERGENCE CRITERIA

4. EXPECTED COSTS AND BENEFITS FROM THE EURO ADOPTION FOR BULGARIA

5. THE CURRENCY BOARD IN THE CONTEXT OF THE FUTURE MEMBERSHIP IN THE EURO AREA

CONCLUSION

REFERENCES

CONCLUSION

EXPERIENCES OF NMS WHICH HAVE ALREADY ADOPTED THE EURO

ATTITUDE TOWARD THE ENTRY IN THE EMU

PROBLEMS CONCERNING CONVERGENCE

MACROECONOMIC STABILITY

INDUSTRIAL POLICY

LOSS OF MONETARY AUTONOMY

AUSTERITY MEASURES

REFERENCES

ABOUT THE EDITOR

INDEX