Brussels, 16/11/2009 (Agence Europe) - The economic crisis may have made membership of the single currency more attractive, but countries wishing to join will face the same entry criteria as in the past, explained EU Economic and Monetary Affairs Commissioner Joaquín Almunia on Monday 16 November 2009, stressing the importance of resilient convergence of candidate countries with the economic situation in the eurozone. “Euro adoption should not be seen as a quick fix to economic vulnerabilities. It should rather be part of a broader long-term policy strategy”, explained Almunia at a conference on European economic integration in Vienna. The crisis might help galvanise public and political support for the idea of joining the euro and accepting the efforts that will be required to achieve this, but “an accelerated euro area enlargement that would require a waiver or a loosening of the entry criteria specified by the treaty is not an option”, explained the commissioner. He said that without sustainable convergence, joining the euro could turn out to be a bad strategy and jeopardise proper management of the Economic and Monetary Area by increasing divergence within its midst. “Compliance with the convergence criteria in a sustainable manner is in the interest of both the prospective and existing members of the euro area”, insisted Almunia. At the European Parliament, however, voices are being raised, like that of the head of the ALDE Group, Guy Verhofstadt (Belgium), calling on the Commission to examine how joining the euro can be made easier for countries in central and Eastern Europe. Without actually changing the membership criteria as such, the idea being mooted is that countries in central and Eastern Europe be put in a more favourable situation to help them join the euro faster so they can benefit from the protection afforded by the single currency. This could take the form of a raft of specific arrangements (see EUROPE 10006).
“The financial crisis has not changed our policy for adopting the euro. Therefore, to prematurely adopt the euro, in particular if not accompanied by a sufficient degree of economic convergence, is certainly not a solution to overcoming the impact of the crisis”, explained a member of the European Central Bank's board, Gertrude Tumpel-Gugerell, in a speech in Vienna on Monday. She explained that “the single monetary policy of the euro area might not be suitable, thereby bearing the risk of boom-bust cycles and high inflation volatility in the country concerned.” Joining the eurozone too early would deprive countries of important economic adjustment levers (like exchange rates) so a credible strategy and timetable for joining the euro remains essential. (A.B./transl.fl)