An Appraisal on the Earlier Euro Adoption by the New Member States in the Frame of the Current Global Economic and Financial Crisis

The pathway of the new member states towards the euro area was stopped, but not modified by the current world economic crisis. Their inflation declined but the fiscal status suffered. On the verge of thefinancial crisis, the European Central Bank overruled the Central and Eastern European member sta...

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Bibliographic Details
Main Authors: Floarea Iordache, Alina Georgeta Glod, Adina Criste, Camelia Milea, Iulia Lupu
Format: Article
Language:English
Published: Danubius University 2010-06-01
Series:EIRP Proceedings
Subjects:
Online Access:http://www.proceedings.univ-danubius.ro/index.php/eirp/article/view/351/535
Description
Summary:The pathway of the new member states towards the euro area was stopped, but not modified by the current world economic crisis. Their inflation declined but the fiscal status suffered. On the verge of thefinancial crisis, the European Central Bank overruled the Central and Eastern European member states’ intentions for an earlier adoption of the euro, requiring compliance with the Maastricht criteria. The objective of this paper is to analyze the main proposed solutions and to draw attention on the most suitable ones in keeping with the particular features of these countries. Our conclusion is that fast results on the euro adoption will definitely depend on the fiscal consolidation, the soundness of global economic rehabilitation, the capital availability, and the domestic policies. The nature of the approached problems and the authors’ experience recommend this study, both for researchers and practitioners.
ISSN:2067-9211