20090709111740_Art4_Eipascoop2009_01 - EIPASCOPE 2009/1 The...

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27 EIPASCOPE 2009/1 Ex mis etebatrum res? Ceridest viridepsena omaximil Introduction The new Member States that joined the EU in 2004 and 2007 have to adopt the euro as soon as they meet the Maastricht criteria since adoption of the euro is part of the requirement for EU accession. Participation in the eurozone is in fact mandatory: the clauses that permitted the United Kingdom and Denmark not to adopt the euro were provided under specific circumstances and were not applicable to the new Member States. Yet, the status of new EU Member States as ‘Member States with a derogation’ (Art. 122 of the Treaty es- tablishing the European Community, TEC) gives them some leeway in setting the target date. In 2007, Slovenia was the first country of this group that joined the euro-area; Malta and Cyprus followed in 2008; and the latest new Member State to adopt the euro was Slovakia in 2009. For the other CEEC the timing is still unknown; official announcements are not consistent and target dates vary from 2010 to 2015. The purpose of this article is to discuss the requirements related to EMU during the different stages of the accession process and to reflect upon the impact of the financial crisis on eurozone enlargement. The complex and dynamic pro- cess of enlargement and monetary policy convergence start- ed well before the EU accession in 2004. The article there- fore begins with a description of the obligations related to EMU during the pre-accession stage and continues with an analysis of the implications of EMU upon and after EU ac- cession. It then concludes with a discussion on the financial crisis and its repercussions on the new EU Member States’ prospects of joining the eurozone. Pre-accession Relations, EU Accession and Implications of EMU At the Copenhagen Summit held in June 1993 the Euro- pean Council set out how accession would be granted once each applicant fulfilled the relevant economic and political criteria. These preconditions for EU accession – the so-called Copenhagen criteria – also addressed the need for monetary policy convergences and included: 1. The achievement of stable institutions guaranteeing democracy, the rule of law, respect for human rights and the protection of minorities. 2. The existence of a functioning market economy. 3. The capacity to cope with the pressure and market forces likely to be faced within the Union. 4. Full acceptance of the acquis communautaire, i.e., the ability to take on the obligations of EU membership, including adherence to the aims of political economic and monetary union (cf. Conclusions of the Presidency SN 180/1/93). The Adoption of the Euro in the New EU Member States The Adoption of the Euro in the New EU Member States: Repercussions of the Financial Crisis Miriam Allam* The new EU Member States are under the legal obligation to introduce the euro as soon as they meet the convergence/Maastricht criteria. However, their status as “Member States with a derogation” (Art. 122 TEC) gives them some leeway in setting the target date. In 2007, Slovenia
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This note was uploaded on 05/04/2011 for the course FINANCE 104 taught by Professor Smith during the Spring '10 term at Abilene Christian University.

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20090709111740_Art4_Eipascoop2009_01 - EIPASCOPE 2009/1 The...

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