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    The inflation criterion for Eurozone membership: what to do when you fail to meet it

    Buiter, W. and Sibert, Anne (2006) The inflation criterion for Eurozone membership: what to do when you fail to meet it. Other. UNSPECIFIED. (Unpublished)

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    Abstract

    The third round of Eurozone enlargement has just produced a new Economic and Monetary Union (EMU) member: Slovenia has been permitted to join the Eurozone on January 1, 2007. At the same time, Lithuania was turned down for Eurozone membership because it was deemed by the European Central Bank (ECB) and the European Commission to have violated the ‘Maastricht’ inflation criterion for EMU membership. Using the threat of assured rejection, Frankfurt and Brussels also bullied Estonia, which had joined the Exchange Rate Mechanism (ERM) together with Slovenia and Lithuania in June 2004, into dropping its application for EMU membership on January 1, 2007. Latvia, which also joined the ERM in 2004 but did not actively pursue a 2007 EMU entry and Slovakia, which joined the ERM in 2005 are the other new European Union (EU) members currently languishing in ERM purgatory. All non-EMU EU members, old and new, and soon-to-be EU members Romania and Bulgaria must be surprised and concerned that after a rich history of fudging and waiving the fiscal and exchange rate criteria for Eurozone membership, the Commission and the ECB have decided to enforce the inflation criterion with extreme rigour.

    Metadata

    Item Type: Monograph (Other)
    School: School of Business, Economics & Informatics > Economics, Mathematics and Statistics
    Depositing User: Sarah Hall
    Date Deposited: 18 Aug 2020 15:11
    Last Modified: 12 Oct 2020 14:53
    URI: https://eprints.bbk.ac.uk/id/eprint/40528

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