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East Asian Economic Review Vol. 5, No. 2, 2001. pp. 79-109.

DOI https://dx.doi.org/10.11644/KIEP.JEAI.2001.5.2.83

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EU Enlargement and the Euro? One Money for All the Europes?

Author

Rainer Schweickert

Kiel Institute of World Economics

schweickert@ifw.uni-kiel .de
Creative Commons Attribution License

EAER is an open access journal distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license.

Abstract

The paper takes into account both the concerns of the EU, arguing that convergence is incomplete, and the demands from accession countries, claiming that monetary integration is optimal. Indicators are developed which measure convergence and optimality in comparison with a reference group of the four EMU-member countries Greece, Ireland, Portugal, and Spain. The general conclusion is that the demand of accession countries for entry into The EMU can be supported by looking at the net benefits from monetary integration. The more serious problem is a lack of convergence which could imply serious risks during the transition towards monetary union.

JEL classification: F15, F33, F52

Keywords

Monetary Integration, European Union, Optimum Currency Areas, Maastricht Criteria

Language

English

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