Economic Themes (2008) 46 (4) 12, 147-163
Irena Radović
Abstract: The eastward enlargement of the euro area entails significant implications both for acceding countries, for the current member States of the Euro zone and for the European Central Bank (ECB). The present analysis assesses the challenges. The focus is on the difficulty of implementing a unique currency policy in view or growing heterogeneity within the enlarged monetary union, and secondly – the issue of the voting mechanism within the ECB. When analyzing those two issues, it is conclusive that the difficulties for ECB and even for the actual Euro zone member will increase. For the enlarged Euro zone, which is becoming more divergent, it will be very hard to find suitable recipe for the needs and requirements of all.
Keywords: European Monetary Union; EU enlargement; Monetary policy; ECB reform
THE EASTWARD ENLARGEMENT OF THE EUROZONE: CHALLENGES FOR THE CURRENT MEMBERS AND FOR THE EUROPEAN CENTRAL BANK
Irena Radović
Abstract: The eastward enlargement of the euro area entails significant implications both for acceding countries, for the current member States of the Euro zone and for the European Central Bank (ECB). The present analysis assesses the challenges. The focus is on the difficulty of implementing a unique currency policy in view or growing heterogeneity within the enlarged monetary union, and secondly – the issue of the voting mechanism within the ECB. When analyzing those two issues, it is conclusive that the difficulties for ECB and even for the actual Euro zone member will increase. For the enlarged Euro zone, which is becoming more divergent, it will be very hard to find suitable recipe for the needs and requirements of all.
Keywords: European Monetary Union; EU enlargement; Monetary policy; ECB reform
