scholarly journals The regional innovations governance: Slovakia with regard to convergence criteria

2021 ◽  
pp. 170-180
Author(s):  
Eniko Korcsmaros ◽  
Renata Machova ◽  
Zoltan Seben ◽  
Tibor Zsigmond
Keyword(s):  
Interest Rates ◽  
Euro Area ◽  
Pearson Correlation ◽  
Convergence Criteria ◽  
Single Currency ◽  
Innovation Development ◽  
The Public ◽  
Government Deficit ◽  
The Eu

The introduction of the euro in Europe is subject to several criteria. In 1979, the European Community created the «European Exchange Rate Mechanism» (ERM). On 16 April, 2003, Slovakia, together with nine other countries, signed the EU Accession Treaty in Athens. These countries promised to adopt the single currency (the euro). It has been 10 years since the introduction of the euro in Slovakia. It stands to highlight factors that have contributed to the economic, innovation development experienced in recent years regarding introducing a single currency. This article aims to briefly introduce the euro area and present each country's accession in historical order. the authors presented the general conditions for introducing the euro and then went on to the events related to the regional innovations governance of Slovakia. Using the data from the statistical site Eurostat, the Pearson correlation coefficient was used to indicate the closeness of relationships between the average values of inflation and government deficit and the average values of inflation and the public debt. The limitations of the research are that Eurostat's values are only indicative and, in the event of a possible accession, EU bodies would certainly use other, more reliable data. Furthermore, the ERM II criterion for joining the euro area cannot be examined due lack of statistics available on the Slovak koruna's value after the introduction. Another limitation is that the EU sometimes makes adjustments to calculating inflation and average nominal long-term interest rates. There is a lack of a significant relationship between the examined variables in the case of Slovakia. Based on the 2018 inflation rate, the introduction would not have been possible, as it was slightly higher (2.5 per cent) than the limit (2.23 per cent). Therefore, the authors assumed that Slovakia had adopted the euro on time, as if it had not done so on 1 January 2009, it would probably have had to wait a few years for the new opportunity. Although their results are only indicative and not decisive without taking ERM II into account, it is possible to do without specific indicators.

scholarly journals Measuring fisheries performance using the “Goldilocks plot”

2018 ◽  
Vol 76 (1) ◽  
pp. 45-49 ◽  
Author(s):  
Ray Hilborn
Keyword(s):  
Primary Objective ◽  
Regional Level ◽  
Fishing Mortality ◽  
Policy Makers ◽  
The Public ◽  
Stock Status ◽  
Realistic Information ◽  
Rate Threshold ◽  
The Eu

Abstract Most reporting of stock status accumulated at a national or regional level gives statistics on what proportion of the stocks are below some abundance threshold or above some fishing mortality rate threshold. This approach does not convey useful information on the performance of the fisheries management system in maximizing long-term sustainable yield, which is the primary objective of most national and international fisheries legislation. In this paper, I present a graphical approach for representing how much yield is being lost as a consequence of current suboptimal abundance and fishing pressure. Using the EU stocks assessed by ICES as an example, I show how traditional criteria for overfished and overfishing fail to display realistic information about the performance of the fishery. This approach provides much more useful information for the public and policy makers.

scholarly journals Macroeconomic stability as the condition for Bulgaria to join the euro area

Equilibrium ◽  
2019 ◽  
Vol 14 (2) ◽  
pp. 295-315
Author(s):  
Anna Moździerz
Keyword(s):  
Euro Area ◽  
Budget Deficit ◽  
Value Added ◽  
Economic Convergence ◽  
Convergence Criteria ◽  
Macroeconomic Imbalances ◽  
Macroeconomic Indicators ◽  
The Subject ◽  
Macroeconomic Stability

Research background: The subject of research is the macroeconomic situation of Bulgaria in the context of the country's preparations for joining the euro area. In 2018, the Bulgarian government approved a plan of preparations covering the period until the end of June 2019, which assumes that the country will join the ERM II mechanism in July 2019, and the euro area on 1 January 2022. Bulgaria meets four nominal convergence criteria regarding inflation, long-term interest rate, budget deficit and public debt. The national currency is pegged to the euro under the currency board arrangement. Despite this, the implementation of this optimistic scenario may be difficult because since the 2007 crisis, the European institutions pay more attention to macroeconomic stability and the sustainability of convergence. Purpose of the article: The aim of the article is to identify the factors destabilising macroeconomic equilibrium in Bulgaria, which are a potential obstacle to the adoption of the euro by Bulgaria on schedule. Methods: The research was based on the changes in selected macroeconomic indicators, as well as on the method used by the European Commission to detect macroeconomic imbalances. The observation and analysis covered the 2007–2018 period.  Findings & Value added: The research results indicate that the low level of socio-economic convergence of Bulgaria and macroeconomic imbalances may delay its membership in the monetary union. Therefore, while respecting the country's aspirations to join the euro area, one cannot ignore the risk of another destabilisation of the euro area. 

scholarly journals Aнализа степена испуњености Мастрихтских критеријума конвергенције у Босни и Херцеговини // The analysis of the Bosnia and Herzegovina’s level of compliance with the Maastricht convergence criteria

2013 ◽  
Vol 11 (18) ◽  
pp. 337
Author(s):  
Бранка Топић-Павковић
Keyword(s):  
Interest Rates ◽  
Monetary Union ◽  
Public Debt ◽  
European Monetary Union ◽  
Monetary Integration ◽  
Convergence Criteria ◽  
European Monetary ◽  
Gradual Process ◽  
Productivity And Competitiveness ◽  
The Eu

Резиме: Идеја о формирању Европске монетарне уније (ЕМУ) произашла је из чињенице да монетарно интегрисање има значајне економске предности код снижавања трансакционих трошкова, веће транспарентности цијена и монетарну стабилност. Теорија оптималног валутног подручјa истиче позитивну везу високог степена конвергенције и постизања користи од интегрисања и вођења заједничке политике за земље чланице монетарне уније Мастрихтски критеријуми конвергенције подразумијевају да земља која улази у ЕМУ има релативно ниску инфлацију, стабилну валуту, низак ниво буџетског дефицита, одржив јавни дуг, као и релативно ниске каматне стопе. Прије стицања позиције кандидата за приступ у ЕМУ, Босна и Херцеговина мора постати чланом ЕУ, и испунити критеријуме за чланство који се односе на политичке, економске, административне и правосудне институције. Будући да су Мастрихтски критеријуми конвергенције прецизније дефинисани од осталих критеријума, у економској литератури често се користе као показатељ спремности земаља кандидата за приступ Е(М)У. Поред сагледавања теоријских и емпиријских сазнања о условима монетарног интегрисања, циљ овог рада је да, на основу компаративне анализе остварених економских перформанси БиХ и земаља региона, оцијенимо остварену конвергенцију и степен приближавања БиХ критеријумима конвергенције из Мастрихта. Резултати истраживања сугеришу да је за БиХ, након уласка у ЕУ, рационално рјешење постепен процес монетарне интеграције, који уз стабилну монетарну политику подразумијева ефикасно управљање јавним финансијама и опрезно управљање јавним дугом. Дугорочни циљ БиХ огледа се у достизању реалне конвергенције кроз повећање продуктивности и конкурентности.Summary: The idea of forming the European Monetary Union (EMU) derives from the fact that monetary integration has considerable economic advantages in lower transaction costs, greater price transparency and monetary stability. Аccording to the optimum currency area (OCA) theory, it is very important for member states to achieve high level of convergence in order to exploit advantages of integrating and conducting a common policy. Maastricht convergence criteria imply that a country that enters the European Monetary Union (EMU) has a relatively low inflation, a stable currency, low budget deficits, relatively low interest rates and sustainable public debt. Before gaining the position of candidates for EMU, Bosnia and Herzegovina has to become a member of the EU and to achieve the criteria for membership related to the development of political, economic, administrative and judicial institutions. Since the Maastricht convergence criteria are more precise than other criteria, in the economic literature are often used as an indicators of the readiness of the candidate countries to access the E(M)U. In addition to consideration of theoretical and empirical knowledge about the monetary integration, the main goal of this paper is to, using the comparative analysis of actual economic performance of BiH and the region, provides us with knowledge and assessment of BiH stage of compliance with the Maastricht convergence criteria. The results show that a rational solution for BiH, after joining the EU, is based on gradual process of monetary integration, with stable monetary policy, effective management of public finances and careful management of public debt. The long-term goal of BiH lies in achieving real convergence through increased productivity and competitiveness.

scholarly journals Is There an Alternative to the Fiscal Compact for Conducting Fiscal Policy in the Euro Area?

Politik ◽  
2013 ◽  
Vol 16 (1) ◽  
Author(s):  
Andrew Hughes Hallet ◽  
Svend E. Hougaard Jensen
Keyword(s):  
Euro Area ◽  
Practical Implementation ◽  
Short Term ◽  
Budgetary Impact ◽  
The Public ◽  
Fiscal Compact ◽  
Set Up ◽  
Changing Demographics ◽  
New Framework

This paper o ers a critical assessment of the scal set-up in the Euro Area and considers a new framework for achieving scal discipline. e key idea is an inter-temporal assignment where national scal policies focus on long-term objectives and a common monetary policy on short-term objectives. e result is a self-stabilising set-up where the enforcement problem has largely been resolved. For practical implementation purposes, scal policy is stated in terms of a target for the public debt-to-GDP ratio. We argue that the debt target should be set in a forward-looking fashion to account for implicit liabilities, such as the discounted budgetary impact of changing demographics in addition to conventional debt measures. 

scholarly journals The Public Debt of Latvia: Short-Term and Long-Terms Aspects

2017 ◽  
Author(s):  
Staņislavs Keišs ◽  
Alla Seregina
Keyword(s):  
Public Debt ◽  
Debt Management ◽  
Annual Reports ◽  
Long Term Effects ◽  
Debt Overhang ◽  
The Public ◽  
High Level ◽  
Criteria For Evaluation ◽  
The Eu

The article investigates the structure and dynamics of public debt of Latvia for the period from 2006–2016 year. The relevance of the study long-term effects of public debt on the economy of Latvia is predetermined by a significant increase in its volume of low GDP growth rates in recent years. This article discusses conceptual approaches and criteria for evaluation of the public debt. An analysis of the main reasons for the growth of public debt of Latvia after joining the EU, considers its specific characteristics and consequences as compared with the more developed EU countries on the basis of these annual reports of Latvia Treasury over the past ten years. Analysis of the structure of the debt of Latvia on maturity shows that an effective public debt management necessarily involves consideration of the long-term effects of the growth of public debt to the public. High level of the external indebtedness in the structure of Latvian public debt is a factor of the growth of “debt overhang” even following Maastricht criterions of public debt. As a result of the research is justification of differentiated approach necessity to the evaluation of public debt with considering of intertemporal effects.

Australian PM challenge will hinder policy agenda

2015 ◽  
Keyword(s):  
Political Parties ◽  
Interest Rates ◽  
Prime Minister ◽  
Party Leader ◽  
Content Type ◽  
Developed Economies ◽  
Housing Bubbles ◽  
The Impact ◽  
The Eu

Significance Although a victory in the short term for Abbott, the narrow margin will only intensify doubts about his long-term prospects as party leader and as prime minister. The challenge continues a trend of instability across Australia's main political parties. The country is poised to enter a record 25th year of uninterrupted economic growth, yet has changed prime minister four times since 2007. Impacts Australia will remain one of the most robust developed economies throughout 2015, with growth rates far above those of the EU. The Reserve Bank's decision to cut interest rates indicates that there are worries of the impact of the China-induced mining slowdown. Concerns in state capitals about housing bubbles will grow and may be an issue in the next federal election.

Germany’s trade surplus benefits the euro-area

2018 ◽  
Keyword(s):  
Euro Area ◽  
Domestic Demand ◽  
Growth Potential ◽  
Gdp Growth ◽  
Trade Surplus ◽  
The Czech Republic ◽  
Content Type ◽  
The World ◽  
The Eu

Subject Germany’s trade surplus. Significance Germany runs a large trade surplus with other euro-area countries and the rest of the world. Critics have argued that wages in Germany have not increased enough in recent years and that the country should boost domestic demand. However, trade and wage developments with other euro-area countries show that such criticism is largely misguided. Impacts Germany’s offshoring of production processes helps boost GDP growth in countries such as Slovakia and the Czech Republic. Creating a more innovation-friendly environment and investing in R&D would lift the long-term growth potential of the euro-area. Completing the digital single market could contribute to more innovation across the EU.

Deflecting Neoliberalism

2021 ◽  
pp. 164-193
Author(s):  
Julian Germann
Keyword(s):  
Political Economy ◽  
Emerging Markets ◽  
Interest Rates ◽  
Economic Conditions ◽  
Perceived Threat ◽  
International Pressures ◽  
Anglo American ◽  
The Eu

This chapter explores how the German political economy was transformed by the global rise of neoliberalism and how this change feeds into Germany’s approach to the eurocrisis. Rather than being pushed down an Anglo-American road, German policymakers still seek to preserve what is left of the domestic compromise between capital and labor. The chapter argues that China’s massive demand for German exports informs the long-term vision of a neoliberal Europe structurally adjusted to support the global position of German manufacturers. At the same time, the perceived threat of US interest rates rising out of step with economic conditions in Europe and emerging markets hardened the German stance on austerity during the fever-pitched policy battles at the height of the eurocrisis. Together, these international pressures and opportunities have produced the predicament of German primacy as a transformative and yet destabilizing force within the EU.

scholarly journals COVID-19 and Fiscal Policy in the Euro Area

2020 ◽  
Author(s):  
F. Busetto ◽  
Alfonso Dufour ◽  
Simone Varotto
Keyword(s):  
Fiscal Policy ◽  
Interest Rates ◽  
Euro Area ◽  
Financial Stability ◽  
Yield Curves ◽  
Fiscal Constraints ◽  
Debt Levels

In this chapter we document fiscal policy developments in the main euro area economies over the last two decades and highlight the dramatic changes triggered by the COVID-19 pandemic. We analyse how euro area yield curves respond to COVID-19 related expectations of fiscal expansion. We show how fiscal constraints may affect interest rates. Upward pressure on national yields from higher debt levels could compromise fiscal and financial stability in the long-term.

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