EMU Convergence Prospects and Transition Countries

Abstract

The new members of the European Union (EC8) in 2004 could not have imagined the possibility of joining the EU thirty years ago. The next goal of the EC8 is to achieve European Monetary Union (EMU) convergence in the foreseeable future. This paper looks at the progress achieved by the EC8 to accede to the European Union (EU) and the reforms, strategies and convergence goals necessary to achieve EMU membership. Using synthetic taxonomic analysis, this paper looks at which transition countries are on track to achieve EMU convergence now that EU membership is attained, and for other accession countries. Our empirical study finds that most of the EC8 countries are on track to achieve EMU membership but post-facto membership does not guarantee the maintenance of market restructuring.

Keywords: European Monetary Union, Transition economies, Monetary convergence

JEL Classification: P34, F33, F36