Monetary and Fiscal Aspects of the European Union's Enlargement

Abstract

With an enlargement of the European Union (EU) appear changes inside of monetary and fiscal systems of new Member States, but also appear changes inside monetary and fiscal system of the EU. Changes connected with monetary policy should be observed in context of European Monetary Union (EMU), while changes connected with fiscal system could be observed through a prism of whole EU. The main research is oriented on problems and challenges of fiscal and monetary system of the EU, and EMU, by which are currently confronted these integrations after the largest enlargement in history of EU. This paper will focus to all these issues, and try to point out key problems that occurred and can later occur inside EU fiscal and monetary systems because of enlargement.

Keywords: EU enlargement, ERM 2, price stability, convergence, EU budget net transfers, redistribution, financial perspective