Albania: The Path to Nominal (Economic) Convergence - Revisited
Boka, Merita; Torluccio, Guiseppe (Proceedings of the 5th International Conference on European Studies 5th ICES 6-7 November 2015, 2015-11-06)
16 Pages Posted: 18 May 2016
Date Written: October 1, 2015
The European integration process presents a challenging objective for Albania. The process has evolved gradually and Albania received the “candidate country” status in June 2014. EU accession is subject to the Copenhagen criteria fulfillment: economic, political and acquis communautaire. Upon granting the “member state” status, the next step concerns participation in the Economic and Monetary Union (EMU) and introduction of the single currency. This stage is related to the Maastricht criteria fulfillment or nominal convergence criteria.
The main objective of this paper is to assess the nominal (economic) convergence of Albania in terms of price stability, exchange rate stability, fiscal criteria and long term interest rate criteria. We will assess how macroeconomic indicators comply with Maastricht criteria requirements as by the end June 2015. Our main finding is that despite not meeting the Maastricht criteria as by the cutoff date, Albania is following the right path toward full effective European integration.
Keywords: Albania, EU, convergence criteria, inflation criteria, ERM II
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