The Possibility of Central and Eastern European Countries

Jeong-Cheol Han

doi:10.11644/KIEP.JEAI.1999.3.1.39

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East Asian Economic Review Vol. 3, No. 1, 1999. pp. 103-154.

DOI https://dx.doi.org/10.11644/KIEP.JEAI.1999.3.1.39

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The Possibility of Central and Eastern European Countries' Joining the EMU: Prospects and Implications for Korea

Author
Jeong-Cheol Han

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 old socialistic states of Middle and Eastern Europe is positively trying to accede to the EMU in order to enjoy the manifold rights of joining currency combination, not mention the political and diplomatic purposes. The EU brought forward the regulation of macro-economic reduction, system and law terms as the requirement of the entrance of those Middle and Eastern Europe countries. According to a survey, including Poland and Hungary, countries which took the lead in reforming agreed with EU on most of EU’ requirements about acceding to EMU. However, because of the domestic and foreign economic conditions, in the next 1 or 2years, none of the Middle and Eastern Europe countries could meet the requirement of reducing macro-economy. Whereas the degree of fulfillment of the economy reducing requirement and the factor that the Middle and Eastern Europe countries could accede to EU after 2003, it was predicted that those countries could accede to EMU only after 2005. With the coming on of EMU, the Middle and Eastern countries will accelerate the activity of currency combination. The South Korean government and enterprises also should intensify the prediction and precaution to the systems, policy change and other economic effects of these Middle and Eastern Europe countries.

JEL classification: F33, F36

Keywords

EMU, Monetary Integration, Central Europe, Eastern Europe

Language

Korean

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