Alternative Options for the Monetary Integration of Central and Eastern European EU Accession Countries

Abstract

The final destination of monetary policy and integration for the Central and Eastern European EU accession countries is the joining of the euro area. The European union has affirmed that, according to the EC treaty, this will be possible, at the earliest, two years after EU accession. Against this background, the most important issue for the accession countries to decide whether to aim for an early introduction of the euro a few years after EU accession or to adopt for a more gradual strategy of monetary integration. This paper reviews the main arguments for and against either of this approaches. Thus the focus is on the question of how speedily to introduce the euro in the accession countries, within the standard path laid down in the EU accession regulations.