On the Fast Track to EU Accession: Macroeconomic Effects and Policy Challenges for Estonia
IMF Working Papers, November 1, 1999
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- On the Fast Track to EU Accession: Macroeconomic Effects and Policy Challenges for Estonia
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Bibliographic details
- Authors: Günther Taube, Rene Weber
- Published: November 1, 1999
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451857382.001
Summary and main conclusion
- The paper assesses the macroeconomic impact and policy challenges related to Estonia’s prospective accession to the EU and its potential adoption of the euro.
- Analysis covers the trade, financial, and fiscal channels and includes a model-based illustrative scenario using MULTIMOD.
- Conclusion: the welfare enhancing effects for Estonia of further EU integration are likely to outweigh the drawbacks of more pronounced macroeconomic imbalances that could accompany this process.
Model, scenario, and analytical approach
- Uses a model-based illustrative scenario employing MULTIMOD to quantify channels of integration.
- Examines trade, financial, and fiscal transmission mechanisms associated with EU accession and potential euro adoption.
Policy implications and recommendations
- Fiscal and structural policies should be geared toward:
- mitigating domestic demand pressures,
- promoting saving,
- ensuring efficient public investment.
- Emphasis on smoothing Estonia’s accession-related adjustment through prudent policy design.
Subjects and keywords (as stated)
- Subject: Expenditure, Exports, Fiscal policy, Imports, International trade, Tariffs, Taxes
- Keywords: Baltics, common market, Eastern Europe, economic integration, Estonia, EU accession, EU country, EU membership, EU regulation, EU request, EU transfer, Exports, Imports, Tariffs, transition, Western Europe, WP