Adopting the Euro: A Long Path towards National Consensus within the Euro Area Candidate Countries

The global financial crisis outbreak after 2007 has profoundly changed the course of the history of relations in the world economy, creating a complicated framework of political relations between countries and economic regions. In this context, it is important to depict the economic convergence stage of Euro Area candidate countries and to what extent this crisis has or has not changed the euro adoption objective for these countries. The present paper aimed to shed a light on this issue by analyzing both the state of the convergence process and the public attitude regarding euro adoption in four Euro Area candidate countries which have the same monetary policy strategy (inflation targeting). The research results show the way in which the global financial crisis “deviates” the convergence trajectory of the nominal indicators, but also the political and public sentiment against the euro adoption in the selected countries. The results represent a valuable groundwork for analyzing the way in which National Central Banks candidate to the Eurosystem are implied into the processing for euro adoption during turbulence times

Issues Regarding the Conducting of the Euro Area Monetary Policy During the European Debt Crisis

This article provides for the identification of the present challenges faced by the monetary policy of the European Central Bank, given that the sovereign debt crisis has complicated the pursuing of its primary objective of the maintaining the price stability. This research is a part of a larger framework, being a continuation of some previous works related to the issue of the sustainable functioning of a currency area. Based on the research of the international monetary institutions documents, we have presented "the route" of the financial shock and also the challenges facing the European Central Bank monetary policy in the current period and in the short-term perspective. The results reveal that the current crisis has been maintained and enhanced by the conflict occurrence between the “no bail out” clause provided in the Maastricht Treaty, and the “too big to fail” principle applied to the sovereign debt of the European countries. This discrepancy has undermined the confidence in the euro project at a level where the conventional channels of the monetary transmission mechanism do not work efficiently. This topical subject could be a reference for the academic research regarding the European monetary integration process and its new challenges

Ongoing Trends for Central Banks’ Strategy

The post-crisis challenges for central banks are the effect of deeper imbalances reflected both by the severity of the recession period after the global financial crisis and the subsequent persistently anaemic recovery, and by the unbalanced post-crisis policy- mix, which has left the task to manage this burden to the monetary policy. In the last decade, there has been a change in the position of central banks conduit, from an offensive one, driven by the important role played by these institutions in managing the adverse effects of the global financial crisis, to a defensive one, as an accommodation to the circumstances created by the complexity of the post-crisis challenges. This article aims at identifying options for the monetary policy strategy in the future, starting from highlighting the post-crisis adjustments of central banks’ monetary policy

A Comparative Analysis of Macroprudential Policy across Euro Area Candidate Countries

Concerns to setting an appropriate overall macroprudential policy framework have taken shape at local, regional, and global level since the onset of the global financial crisis. At regional level, a particular case is that of the European Union, given the national-supranational relationship specific to this economic region. The article aims to identify the macroprudential policy condition of the Euro Area candidate countries, by using an index built on some criteria that describe on the one hand, the capacity of macroprudential policy governance and the “activism” of macroprudential authority, and, on the other hand, the degree of compliance with the European Systemic Risk Board (ESRB) recommendations for national macroprudential authorities, given that the countries under review are member states of the European Union. Our findings show that the Euro Area candidate countries have quite different macroprudential policy features, both in terms of its governance and in terms of the “convergence” towards ESRB recommendations. Although the analysis should be extended by adding other relevant criteria, we can assert that it offers an overview of the potential role of the national macroprudential policy as a shock-absorber instrument in the perspective of a future accession to the Euro Area

A descriptive assessment of the effects of Lehman Brothers’ shock on the external equilibrium in some Euro Area countries

The purpose of this article is the assessment of the way in which the propagation of the Lehman-Brothers shock has been reflected on the developments in the balance of payments of some countries in the euro area and the highlighting of the asymmetries, which have emerged due to the generated effects. The motivation is represented by the importance of the asymmetries manifestation within a monetary area, by the effects they have on the implementation of the common policies, and by their causes: are these asymmetries generated by asymmetric macroeconomic shocks or by the accumulation in time of some vulnerable elements in the economy? The paper is a capitalization of the research project “External equilibrium and asymmetric shocks” elaborated in 2012, at “Victor Slăvescu” Centre for Financial and Monetary Research of "Costin C. Kiriţescu" Institute for Economic Research, Romanian Academy

Development of Nominal Convergence Indicators in New Member States of European Union under the Challenges of Economic and Financial Crisis

The importance of compliance with nominal convergence criteria is crucial for adopting the euro in New Member States (NMS). Although some of these countries have made remarkable efforts for complying with nominal criteria, structural and conjunctional macroeconomic imbalances have created big problems in this respect. Also, the global financial crisis revealed new challenges for the NSM which are not yet members of the euro area. Having imbalances widened further much more than the countries in the euro area, many of them have come to appreciate the protection of the euro area membership, especially at times of financial and economic crises. Though, some NMS would like to speed up euro adoption, they now face conditions that may make it more difficult for them to satisfy the requirements of the nominal convergence criteria. Thus, in this article we try to capture the effects of economic and financial crises on the nominal convergence indicators in NMS

Development of Nominal Convergence Indicators in New Member States of European Union under the Challenges of Economic and Financial Crisis

The importance of compliance with nominal convergence criteria is crucial for adopting the euro in New Member States (NMS).Although some of these countries have made remarkable efforts for complying with nominal criteria, structural and conjunctional macroeconomicimbalances have created big problems in this respect. Also, the global financial crisis revealed new challenges for the NSM which are not yetmembers of the euro area. Having imbalances widened further much more than the countries in the euro area, many of them have come to appreciatethe protection of the euro area membership, especially at times of financial and economic crises. Though, some NMS would like to speed up euroadoption, they now face conditions that may make it more difficult for them to satisfy the requirements of the nominal convergence criteria. Thus, inthis article we try to capture the effects of economic and financial crises on the nominal convergence indicators in NMS

The Reflection of the Current Crisis on the Economic Growth in the European Union New Member States

The paper presents an analysis of the economic growth evolution in the European Unionnew member states, being part of a more comprehensive research regarding the euro adoptionchallenges, taking as benchmark Slovakia and Slovenia, countries that already entered the euro zone.The research underlines the fact that, starting with the mid-September 2008, the macroeconomiclandscape of the analyzed countries changed radically, registering a decrease of the economicactivities determined both by a diminished export activity and by a reduced internal demand, witheffects on the firms’ profitability and on the deterioration of the labour market situation. The resultsshow that the severity of the financial global crisis effects was different in the analyzed countries, as aresponse to various “paths” of economic development, with less or more important vulnerabilities,with differences in the extent to which the economies are based on external demand and on creditactivity induced from abroad. The countries that are suffering the deepest recessions are those thatregistered not only a decline of exports, but also a collapse of the internal demand, as a result ofstopping the credit activities that were a support for the internal demand

Aspects of the Current Fiscal - Budgetary Situation in Some Euro Area Countries. Implications for Romania

The financial and economic global crisis has exacerbated some of the imbalances existent in all EU Member States, in particular the fiscal-budgetary imbalances. For some countries whose currency is euro, the fiscal and budgetary challenges seem to threaten even the stability of the euro area. Thus, in the context of financial and economic global crisis, this article aims at identifying a number of negative aspects of the fiscal-budgetary situation of some euro area countries, more seriously affected (Greece, Italy, Portugal, Ireland, Spain) and at revealing a series of possible implications of this phenomenon for Romania, thus giving originality of the conducted analysis. A fulcrum in this approach is the economic literature and the authors’ research work in the field of European integration. Through a comparative approach, the authors have identified some weaknesses of the Romanian economy generated by the current situation of some euro area countries. Given the place of the theme within the frame of present interest researches, the article’s results will be of interest for both academics and practitioners

Aspects of the Current Fiscal - Budgetary Situation in Some Euro Area Countries. Implications for Romania

The financial and economic global crisis has exacerbated some of the imbalances existent inall EU Member States, in particular the fiscal-budgetary imbalances. For some countries whosecurrency is euro, the fiscal and budgetary challenges seem to threaten even the stability of the euroarea. Thus, in the context of financial and economic global crisis, this article aims at identifying anumber of negative aspects of the fiscal-budgetary situation of some euro area countries, moreseriously affected (Greece, Italy, Portugal, Ireland, Spain) and at revealing a series of possibleimplications of this phenomenon for Romania, thus giving originality of the conducted analysis. Afulcrum in this approach is the economic literature and the authors’ research work in the field ofEuropean integration. Through a comparative approach, the authors have identified some weaknessesof the Romanian economy generated by the current situation of some euro area countries. Given theplace of the theme within the frame of present interest researches, the article’s results will be of interestfor both academics and practitioners