Varieties of euro adoption strategies in Visegrad countries before the pandemic crisis

Péter Ákos Bod (), Orsolya Pócsik and György Iván Neszmélyi
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Péter Ákos Bod: Department of Economic and Public Policy, Corvinus University of Budapest, Budapest, Fővám tér 8, H-1093, Hungary
Orsolya Pócsik: Doctoral School of Management and Regional Sciences, Institute of Sustainable Development and Management, Hungarian University of Agriculture and Life Sciences, Gödöllő, Hungary
György Iván Neszmélyi: Department of Commerce, Hospitality and Tourism, Budapest Business School and University of Applied Science Faculty of Commerce, Hungary

Acta Oeconomica, 2021, vol. 71, issue 4, 519-550

Abstract: The enlargement of the euro area (EA), an unfinished process, was low on the European agenda in the period between the 2008 and the 2020 crises. The socio-economic consequences of the coronavirus pandemic and frictions in geopolitics would call for a coherent Europe, yet new and old fault-lines appeared in the EU involving the eastern periphery where sovereignty issues gained particular importance. The authors revisit the euro adoption process of the new member states, with a focus on the Visegrad Group (V4) countries, applying a two-track approach: a monetary policy analyses of EA entry as a rational cost/benefit issue and, second, a political economic survey of key stakeholders, set in the context of the dilemmas of retaining or sacrificing nominal monetary sovereignty. Even a piecemeal enlargement of the EA, involving Bulgaria, Croatia and Romania, would cause business consequences and political repercussions in the countries left out of EA. The paper concludes that further moves towards a developmental state model would preclude euro adoption and put such member state in collision course with the core Europe.

Keywords: Central and Eastern Europe; euro adoption; economic policy; middle-income trap (search for similar items in EconPapers)
JEL-codes: E63 E65 F15 F45 P26 R5 (search for similar items in EconPapers)
Date: 2021
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