Currency Integration Effects in CEE Countries: Between Economic Dynamics and Institutional Readiness

Krasimira Valcheva
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Krasimira Valcheva: University of National and World Economy, Sofia, Bulgaria

Ikonomiceski i Sotsialni Alternativi, 2025, issue 3, 62-81

Abstract: The accession of Central and Eastern European countries to the Eurozone between 2007 and 2015 reveals diverse economic trajectories. An analysis of three indicators – inflation, foreign direct investment, and the share of the informal economy, reveals that the effects of adopting the euro are not uniform. While some countries have seen stabilization and improvement, others have experienced fluctuations or even unfavourable trends. The differences highlight the key role of the national institutional framework, social context, economic policy and global crises. These observations might provide a benchmark for expectations for Bulgaria, whose currency integration is scheduled for 2026, and aim to remind us that currency alone cannot bring benefits if there is no institutional consistency, transparency of governance, and capacity to address structural challenges.

Keywords: foreign direct investment; Economic Integration; inflation; informal economy; Euro Area (search for similar items in EconPapers)
JEL-codes: E22 E31 F36 O17 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:nwe:iisabg:y:2025:i:2:p:62-81

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