Macroeconomic Challenges with EU Accession in Southeastern Europe: An Overview

February 1, 2006

Preview Citation

Format: Chicago

Piritta Sorsa. Macroeconomic Challenges with EU Accession in Southeastern Europe: An Overview, (USA: International Monetary Fund, 2006) accessed September 18, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper reviews key macroeconomic challenges with EU accession in Southeastern Europe (SEE). Most of the countries in the region are years away from EU accession and need substantial progress to meet the key macroeconomic criteria-the establishment of a functioning market economy and macroeconomic stability. The former calls for further structural reforms. While macroeconomic stability is essential throughout the EU accession process, the importance of specific outcomes increases in the last stage of accession, when countries face decisions to apply for entry into the ERM2 and the Maastricht criteria (Bulgaria and Romania). The main challenges with establishing macroeconomic stability in other countries are related to sustainability of their monetary frameworks, risks from rapid financial deepening, and further fiscal consolidation to support growth and stabilization. Most of the SEE countries have room to lower public spending and increase the share of pro-growth spending.

Subject: Competition, Exchange rate anchor, Fiscal policy, Inflation, Structural reforms

Keywords: Accession, Country, Market economy, Monetary policy, SEE country, WP

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2006/040
Stock No:

WPIEA2006040
ISBN:

9781451863000
ISSN:

1018-5941

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