Euros in the ten new countries
It's a pity if some of the new members have to postpone their entry to the eurozone. I have been looking forward to Estonia's entry in particular, because it would be significant to us Finns on a practical level, getting a neighbour with the same money.
On the other hand though, it is of course more important for both the old and the new euro participants that the economies of the candidate countries should be on a healthy basis before they enter.
On the other hand though, it is of course more important for both the old and the new euro participants that the economies of the candidate countries should be on a healthy basis before they enter.
Agreed. Of course there is some hypocrisy in the argument that future euro countries have to meet all convergence criteria while existing euro countries basically get away with repeatedly violating stability pact criteria. 
But maybe it is precisely that experience (with France, Germany, Italy, etc.) which makes the European Commission and the ECB so cautious now ...
As far as the three new Baltic member states are concerned, Estonia will not join the currency union next year due to the inflation rate. Latvia did and does not have such plans anyway (they are aiming at 2008), and even Lithania may not be ready by the end of this year.
Christian
But maybe it is precisely that experience (with France, Germany, Italy, etc.) which makes the European Commission and the ECB so cautious now ...As far as the three new Baltic member states are concerned, Estonia will not join the currency union next year due to the inflation rate. Latvia did and does not have such plans anyway (they are aiming at 2008), and even Lithania may not be ready by the end of this year.
Christian
Oh, of course the old members should, too.
I'm somewhat worried about how the public opinion will turn in the candidate countries if the changeover has to be postponed. My Estonian friends have said earlier that they are not very eager to change over to the new money, but their politicians have decided so and it will thus happen anyway. In Estonia the official standpoint has been aiming very strictly to 1 Jan 2007 with no speculation on any alternative schedule.
But now that it is no longer quite as inevitable as it seemed only a couple of years ago, the public opinion might turn even more sceptical towards the changeover.
I'm somewhat worried about how the public opinion will turn in the candidate countries if the changeover has to be postponed. My Estonian friends have said earlier that they are not very eager to change over to the new money, but their politicians have decided so and it will thus happen anyway. In Estonia the official standpoint has been aiming very strictly to 1 Jan 2007 with no speculation on any alternative schedule.
But now that it is no longer quite as inevitable as it seemed only a couple of years ago, the public opinion might turn even more sceptical towards the changeover.
Maybe so. But I think we will have to, and can, live with that. Theoretically any member state that joined the EU "after Maastricht" has to join the currency union once the euro criteria are met. But if the government and/or public opinion in Estonia (or any other "EU-but-not-euro" country) is against joining, there will be ways of staying out - see Sweden.Craft wrote:But now that it is no longer quite as inevitable as it seemed only a couple of years ago, the public opinion might turn even more sceptical towards the changeover.
Christian
Hungary eyes joining EU euro zone by 2014
Hungary eyes joining EU euro zone by 2014
BUDAPEST, Hungary, Aug. 17 (UPI) -- Hungary could become a new member of the EU euro zone in 2013 or 2014, the Hungarian Portfolio financial newspaper said Thursday.
The newspaper said it usually takes two years after a state reaches fiscal stability in line with the so-called Maastricht criteria and achieves a public deficit below 3 percent of gross domestic product to join the euro zone of the European Union.
As well, Prime Minister Ferenc Gyurcsany has said an earlier plan to introduce the euro in Hungary in 2010 was "unrealistic."
Early in July, EU finance ministers declared Slovenia a new member of the EU euro zone as of Jan. 1, when it will become the first of the 10 new member countries that joined the EU in 2004 to introduce the euro.
Lithuania, another new EU member since 2004, was denied its wish to introduce the euro because its annual inflation was higher than allowed by EU standards.
Copyright Political Gateway 2006©
Copyright United Press International 2006
BUDAPEST, Hungary, Aug. 17 (UPI) -- Hungary could become a new member of the EU euro zone in 2013 or 2014, the Hungarian Portfolio financial newspaper said Thursday.
The newspaper said it usually takes two years after a state reaches fiscal stability in line with the so-called Maastricht criteria and achieves a public deficit below 3 percent of gross domestic product to join the euro zone of the European Union.
As well, Prime Minister Ferenc Gyurcsany has said an earlier plan to introduce the euro in Hungary in 2010 was "unrealistic."
Early in July, EU finance ministers declared Slovenia a new member of the EU euro zone as of Jan. 1, when it will become the first of the 10 new member countries that joined the EU in 2004 to introduce the euro.
Lithuania, another new EU member since 2004, was denied its wish to introduce the euro because its annual inflation was higher than allowed by EU standards.
Copyright Political Gateway 2006©
Copyright United Press International 2006
Re: Hungary eyes joining EU euro zone by 2014
Guess we should take such statements with at least a grain of salt if they came from the Gyurcsany government ...westwind wrote:Hungary eyes joining EU euro zone by 2014
Christian
The position of Estonia was discussed today in a programme on a Finnish radio channel.
As you know, the official target set by the Estonian government for introducing the euro is 1 Jan 2008 at the moment. But the Estonian economy is now overheating in accelerating pace. There is a shortage of workforce in Tallinn area and soon maybe elsewhere too, and the wages are rising rapidly. But the overall productivity is not rising quickly enough, if at all. This means that the economy is not in balance and probably won't be very soon.
The conclusion was that the hopes for meeting the Maastricht criteria very soon are fading away and that the introduction of the euro may have to be postponed by many more years.
As you know, the official target set by the Estonian government for introducing the euro is 1 Jan 2008 at the moment. But the Estonian economy is now overheating in accelerating pace. There is a shortage of workforce in Tallinn area and soon maybe elsewhere too, and the wages are rising rapidly. But the overall productivity is not rising quickly enough, if at all. This means that the economy is not in balance and probably won't be very soon.
The conclusion was that the hopes for meeting the Maastricht criteria very soon are fading away and that the introduction of the euro may have to be postponed by many more years.
This article at the Bank of Estonia website states it more clearly.
Yes, seems that the 2008 target is officially dead now. "Estonia has dropped its target for adopting the euro, abandoning ambitions to join the common currency on Jan. 1, 2008" (last but one paragraph of this http://www.iht.com/articles/2006/11/30/ ... EUecon.php article) ...Craft wrote:This article at the Bank of Estonia website states it more clearly.
Christian
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alex77r
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Sure it is going to happen !Dakkus wrote:Funny. Although the starter kit isn't officially valid money yet (or so I figure), they could already be spent in the Euroland. Imagine getting Slovenian euros as a change in a kiosk before Slovenia has joined the Euro
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