From Transition to Monetary Integration: Central and Eastern Europe on its Way to the Euro Comments on the Country Papers

Abstract

This article reviews a set of key issues arising in the context of the prospective monetary integration of Central and Eastern European countries into the euro area. It explores economic arguments that relate to the timing of a future euro adoption by new EU Member States. In doing so, the analysis pertains to the prospects for meeting the Maastricht criteria in a sustainable manner, focusing mainly on the fiscal realm. The article also discusses the pros and cons of renouncing monetary independence irrevocably and how the costs and benefits of such a step may change over time and differ across countries. Furthermore, the Austrian experience with monetary integration is analysed, also with a view to asking what can possibly be learnt from the course of history in this particular country case.