Macroeconomic Challenges with EU Accession in Southeastern Europe: An Overview

27 Pages Posted: 23 Mar 2006

See all articles by Piritta Sorsa

Piritta Sorsa

International Monetary Fund (IMF)

Date Written: February 2006


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.

Keywords: Europe, economic integration

JEL Classification: O52, F15

Suggested Citation

Sorsa, Piritta, Macroeconomic Challenges with EU Accession in Southeastern Europe: An Overview (February 2006). IMF Working Paper No. 06/40, Available at SSRN:

Piritta Sorsa (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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