Determinants and Implications of the Eurozone Enlargement

Gregorz W. Kolodko () and Marta Postula ()
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Gregorz W. Kolodko: Transformation, Integration and Globalization Economic Research (TIGER), Kozminski University, Warsaw, Poland
Marta Postula: Center of Entrepreneurship at the Faculty of Management, Warsaw University, Poland

Acta Oeconomica, 2018, vol. 68, issue 4, 477-498

Abstract: To join the Eurozone (EZ), a candidate country has to fulfil five nominal Maastricht convergence criteria and ensure compliance of national legislation with the acquis communautaire. With this regard special difficulties pose the fiscal criterion relating to the maximum allowed budget deficit of 3 per cent of GDP. If it is not met, the European Commission launches the Excessive Deficit Procedure. Currently, such formula applies to France, Spain and the United Kingdom. Although the issue is not absolutely certain, one can assume that euro will weather the present difficulties and will come out stronger, though the economically unjustified Euro scepticism of some countries is not helping. It may be expected that in the 2020s the European Monetary Union will be joined by all countries that are still using their national currencies and that the EU will be extended to include new member states, enlarging the euro area further. In this article authors are discussing the issue whether Poland will join the EZ in the coming years, considering the challenges of meeting all Maastricht criteria, on the one hand, and the reluctance of the government to give up the national currency, on the other. A mixed method combining the results of qualitative and quantitative research has been used to empirically verify the research question presented.

Keywords: integration; euro convergence; Maastricht criteria; excessive deficit procedure; public debt (search for similar items in EconPapers)
JEL-codes: E44 E63 F02 F45 G01 G18 P34 P52 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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