Making it to the Euro

The upcoming enlargement of the European Union in May is a major focus not only for governments in the acceding countries, but also for their central banks. Upon entry, they will become members of the European Central Bank, which means that the new members are expected to take active steps towards fulfilling the necessary conditions for future admission into the eurozone.

Even though actual enlargement of the eurozone remains in the relatively distant future - the earliest possible date being January 2007 - the accession countries must prepare their entry strategies well in advance. This is why in most accession countries last year, central banks and governments stepped up co-operation on defining joint positions on adopting the euro.

Similarly, there were intense debates within the EU, culminating with the adoption of the ECB's Policy Position on Exchange Rate Issues Relating to the Acceding Countries. The Policy Position expressed the ECB Governing Council's stance on membership of the exchange rate mechanism (ERM II), a key precondition for future eurozone entry.

We hope you're enjoying Project Syndicate.

To continue reading, subscribe now.

Subscribe

Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.

http://prosyn.org/GwhKl9Y;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.