scholarly journals Bulgaria in the Eurozone – Other Countries’ Experience and Comparisons

2021 ◽  
Vol 27 (2) ◽  
pp. 109-126
Keyword(s):  
Monetary Union ◽  
Economic Indicators ◽  
Actual Data ◽  
Banking Union ◽  
Baltic Countries ◽  
Real Convergence ◽  
European Economies

On July 10 2020 Bulgaria joined the preparatory mechanism for the Eurozone ERM II, but the opinions expressed are still divided. The author’s opinion is that in the debate for or against Bulgaria joining the Eurozone, the actual data provides the strongest arguments. Economic indicators and facts about five former socialist countries that are already in the Eurozone are presented in the paper. There are solid arguments in favor of joining in the analysis of the three Baltic countries – Estonia, Latvia and Lithuania, as well as Slovenia and Slovakia. These countries’ development as part of the monetary union and their economic indicators after this important step show their goal for real convergence with developed European economies. The author accepts two issues as especially important – what happens to inflation in these economies after joining the Eurozone and what the comparison concerning real convergence shows. Croatia, along with Bulgaria, has become a part of ERM II and the Banking Union, hence why it is also included in the analysis.

scholarly journals MONETARY CHALLENGES OF EMERGING EUROPEAN ECONOMIES TOWARDS THE EURO ZONE

TEME ◽  
2020 ◽  
pp. 883
Author(s):  
Emilija Beker Pucar
Keyword(s):  
Exchange Rate ◽  
Monetary Union ◽  
Capital Inflows ◽  
Smooth Transition ◽  
Target Zone ◽  
Waiting Room ◽  
Euro Zone ◽  
Real Convergence ◽  
Floating Exchange Rate ◽  
European Economies

The paper aims to highlight the main difficulties on the monetary path towards the euro zone experienced by Emerging Europe. Emerging European Economies (EEEs), EU members, adopted either double shift or smooth transition monetary approach towards the euro zone. Double shift assumes changes from floating exchange rate regimes (ERRs) to the ERM II target zone and, finally, monetary union as a rigid ERR. The smooth transition is practiced by economies with mainly rigid ERRs before the ERM II entrance and, at the end, again rigid ERR of a monetary union. Despite chosen monetary path towards the euro zone, crucial difficulties or aggravating factors could be identified in the form of real exchange rate appreciation due to productivity growth or capital inflows. A reconciliation of inflation and exchange rate target zone is extremely complex, at the same time striving not to jeopardize the real convergence. What is stressed here is the vicious cycle between real and nominal convergence as the reason why the ERM II target should be regarded as a “waiting room“ not as a “training room“ in the pre-EMU phase. 

scholarly journals European Monetary Union as a stabilizing factor in the circumstances of economic crisis

Ekonomika ◽  
2020 ◽  
Vol 66 (4) ◽  
pp. 13-28
Author(s):  
Srećko Milačić ◽  
Zoran Simonović ◽  
Aleksandar Kostić
Keyword(s):  
Economic Crisis ◽  
Monetary Union ◽  
European Monetary Union ◽  
Financial Stability ◽  
Developed Countries ◽  
Point Of View ◽  
European Monetary ◽  
Real Convergence ◽  
New Institutions ◽  
The Developed Countries

The authors examine the problems the European Monetary Union in the circumstances of the global economic crisis. They especially elaborated the battle for the financial stability of the European Monetary Union. The authors problematize the interaction of the European Central Bank and national central banks, emphasizing the deficiencies in the coordination of fiscal and monetary policy. They investigated the reasons that require a cautious strategy when it comes to the admission of new member states into the European Monetary Union and in that sense the conditions for nominal and real convergence. The authors consider the management of the economic crisis and the introduction of new institutions with the task to stabilize the situation in the monetary field. They explored the problems of helping countries like Greece from the point of view of the developed countries relationship. The authors especially paid attention to the level of transparency in relation to their citizens when making decisions on certain aid giving issues. They have proposed solutions for getting out of the vicious circle and the need to redesign the European Monetary Union and in this context the problem of the stabilization of the euro in order for it to be competitive with the dollar.

scholarly journals Towards a Genuine Economic and Monetary Union—Comments on a Roadmap

2013 ◽  
Vol 1 (1) ◽  
pp. 48-65 ◽  
Author(s):  
Ansgar Belke
Keyword(s):  
European Commission ◽  
Monetary Union ◽  
Euro Area ◽  
Fiscal Federalism ◽  
Economic And Monetary Union ◽  
Banking Union ◽  
Interim Report ◽  
Fiscal Union ◽  
The North ◽  
To Come

The Van Rompuy Report and also additional proposals made by the European Commission outlined steps for a 'genuine Economic and Monetary Union'. This article explains, assesses and comments on the proposals made. Moreover, it outlines what could be recommendations in order to achieve a 'genuine Economic and Monetary Union'. For this purpose, details of the Interim Report are systematically evaluated. We also deal with different governance visions emerging from the ongoing euro area crisis and starts from different views of the 'North and the South' of the euro area on this issue. This contribution argues that there is an alternative option to the notion of cooperative fiscal federalism involving fiscal union, bailouts and debt mutualisation: competition-based fiscal federalism accompanied by a properly defined banking union. In order to be a successful one, any deal will have to come up with a successful recipe of how to (re-)create trust between European citizens and their elected governments.

scholarly journals Foreign Direct Investment Impact on Economic Indicators of the Baltic Countries

2016 ◽  
Vol 28 (1) ◽  
pp. 61-67
Author(s):  
Aida Barkauskaite ◽  
Violeta Naraskeviciute
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Labour Productivity ◽  
Positive Influence ◽  
Economic Indicators ◽  
Foreign Direct Investments ◽  
Literature Analysis ◽  
Baltic Countries ◽  
Labour Productivity Growth ◽  
The Baltic

Abstract The foreign direct investment movement is becoming increasingly important nowadays. Various studies are conducted to determine the influence of foreign direct investments on certain countries. That is why it is important and useful to evaluate and compare how foreign direct investments affect the economic indicators of the Baltic countries - countries having similar economies. Methods used in the analysis are: logical comparative and generalization methods, systematic literature analysis and methods of mathematical statistics. The results have showed that foreign direct investments have positive influence on economies through gross domestic product and labour productivity growth in all Baltic countries, though foreign direct investments do not influence the unemployment rate in all Baltic countries

scholarly journals BULGARIA'S REAL CONVERGENCE IN THE CONTEXT OF POTENTIAL EMU MEMBERSHIP

2020 ◽  
Vol 1 ◽  
pp. 22-29
Author(s):  
Valentin Bilyanski ◽  
Silviya Kirova
Keyword(s):  
Labour Productivity ◽  
Gdp Per Capita ◽  
Banking Union ◽  
The European Union ◽  
Negative Consequences ◽  
Convergence Criteria ◽  
Policy Goals ◽  
Real Convergence ◽  
Per Capita ◽  
The Eu

Since the entry of Bulgaria into the European Union, the country's full membership in the Economic and Monetary Union has become one of the national economic policy goals. In the recent period Bulgaria fulfils all the nominal convergence criteria, except for the criterion on exchange rate stability as long as the country does not participate in the ERM II mechanism (although Bulgaria has a currency board arrangement in place since 1997 and the Bulgarian currency is pegged to the euro). Despite that, Bulgaria remains the EU member with the lowest level of GDP per capita and lowest productivity and income levels. In June 2018 the Bulgarian authorities submitted a letter of intent to the EU policy makers to join the ERM II mechanism and the banking union. In July 2020 the mutual agreement to include the Bulgarian lev in the ERM II mechanism and Bulgaria to join the banking union was achieved. In the context of the future full EMU membership it is important to assess the evolution and the state of Bulgaria's real convergence. This paper looks at the Bulgaria's real convergence, understood as the convergence of GDP per capita, labour productivity and convergence of price levels. We use the Beta and Sigma convergence methods and explore the convergence in the 1999-2018 period. We also compare Bulgaria's real convergence to the real convergence of other CEE countries that are EU members (Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia), part of which have already accepted the euro and the other part are still outside of the euroarea. We also try to explain the economic reasoning behind the EMU accession path of Bulgaria. The results of the survey show that Bulgaria lags behind in its convergence process from other CEE countries, but at the same time we believe that the benefits of the euroarea membership outweigh the possible negative consequences.

The Economic and Monetary Union (EMU)

2018 ◽  
Author(s):  
Lucia Quaglia
Keyword(s):  
Monetary Union ◽  
National Level ◽  
Economic And Monetary Union ◽  
Banking Union ◽  
The European Union ◽  
Member States ◽  
The Third ◽  
Asymmetric Shape ◽  
On The Road ◽  
Set Up

Economic and Monetary Union (EMU) is one of the most important policy areas of the European Union (EU). Academic research on EMU in political science is well-established and ever-evolving, like EMU itself. There are three main “waves” of research on EMU, which have mostly proceeded in a chronological order. The first wave of scholarly work has focused on the “road” to EMU, from the setting up of the European Monetary System in 1979 to the third and final stage of EMU in 1999. This literature has explained why and how EMU was set up and took the “asymmetric” shape it did, that is to say, a full “monetary union,” whereby monetary policy was conducted by a single monetary authority, the European Central Bank (ECB), but “economic union” was not fully fledged. The second wave of research has discussed the functioning of EMU in the 2000s, its effects and defects. EMU brought about significant changes in the member states of the euro area, even though these effects varied across macroeconomic policies and across countries. The third wave of research on EMU has concerned the establishment of Banking Union from 2012 onward. This literature has explained why and how Banking Union was set up and took the “asymmetric” shape it did, whereby banking supervision was transferred to the ECB, but banking resolution partly remained at the national level, while other components of Banking Union, namely a common deposit guarantee scheme and a common fiscal backstop, were not set up. Subsequently, the research has begun to explore the functioning of Banking Union and its effects on the participating member states.

The Economics of European Monetary Integration: The Pros and Cons of EMU Membership

2020 ◽  
Author(s):  
Donato Masciandaro ◽  
Davide Romelli
Keyword(s):  
Interest Rates ◽  
Monetary Union ◽  
Capital Mobility ◽  
Monetary Integration ◽  
European Monetary ◽  
Global Crisis ◽  
Real Convergence ◽  
Pros And Cons ◽  
The Stability ◽  
Two Stages

The recent global crisis challenged the stability of the European monetary integration process. That process, which is closely linked to the evolution of the European Monetary Union (EMU), has gone through two stages: the Common Market era, which ran from 1958 until 1993, and the Monetary Union era, which started in 1994 and gained new impetus after the global crisis with the publication of the Four Presidents’ Report in December 2012. The aim of the EMU has been to exchange rates, inflation and interest rates in order to boost capital mobility and trade, thereby promoting the growth of member countries. Thus far, the data shows that there has been nominal convergence of inflation and interest rates, while real convergence of per capita income has not occurred among the original euro area participants.

Introduction

2020 ◽  
pp. 1-17
Author(s):  
Menelaos Markakis
Keyword(s):  
Monetary Union ◽  
Analytical Framework ◽  
Economic And Monetary Union ◽  
Banking Union

This chapter outlines the scope and key arguments of the book. It further set outs the analytical framework that will inform the discussion on the accountability arrangements in the area of Economic and Monetary Union, including the Banking Union.

Experience of the European Economic and Monetary Union and Its Implications for the Eurasian Integration Project

2016 ◽  
Vol 4 (3) ◽  
pp. 60-67
Author(s):  
Родичева ◽  
Yulia Rodicheva
Keyword(s):  
Monetary Union ◽  
Financial Integration ◽  
Lessons Learned ◽  
Economic And Monetary Union ◽  
Eurasian Economic Union ◽  
Real Convergence ◽  
National Currencies ◽  
Economic Union ◽  
National Economies ◽  
Integration Project

The article is devoted to the prospects of the monetary union creation on the basis of the Eurasian Economic Union (EAEU), analyzed with consideration of the lessons learned from the experience of the Economic and Monetary Union of the European Union (EMU). The author comes to the unambiguous conclusion: a monetary union should be firmly based on successively passed preceding levels of integration. Real convergence of national economies alongside with creation of common financial market is crucial for completion of the Eurasian integration in form of an economic union. Development towards the monetary union would require implicit adherence to the “four freedoms” principle as well as scrupulous coordination of fiscal policies. Nowadays, introduction of a single currency can’t be seen as top priority of the monetary and financial integration within the framework of the EAEU: the emphasis is put on coordination of exchange rate policies and broader use of national currencies in mutual settlements.

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