The Path to Euro Adoption: a Case Study of Slovenia and Slovakia

By the terms of their treaties of accession, the financial integration and the adoption of the euro became binding on all new Member States of the European Union. Once they meet the convergence criteria and ensure their laws are compatible with the euro area, they are legally obliged to adopt the eu...

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Main Author: DORINA CLICHICI
Format: Article
Language:English
Published: Nicolae Titulescu University 2021-06-01
Series:Global Economic Observer
Subjects:
Online Access:http://www.globeco.ro/wp-content/uploads/vol/split/vol_9_no_1/geo_2021_vol9_no1_art_012.pdf
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author DORINA CLICHICI
author_facet DORINA CLICHICI
author_sort DORINA CLICHICI
collection DOAJ
description By the terms of their treaties of accession, the financial integration and the adoption of the euro became binding on all new Member States of the European Union. Once they meet the convergence criteria and ensure their laws are compatible with the euro area, they are legally obliged to adopt the euro. This paper aims to track the integration path into the euro area of Slovenia and Slovakia, and to find out the main lessons from these stories. The results revealed that the process of adopting the euro in both countries has been very smooth and rapid, due to a general political and public consensus driven by an efficient communication strategy. Thanks to the emphasis on macroeconomic stability throughout the pre-accession period and due to clear economic policy priorities, Slovenia managed to remedy the economic imbalances and to meet the nominal convergence criteria. In the same time, fundamental institutional reforms and foreign direct investment have allowed Slovakia to adopt an export-oriented growth model that made this country one of the most notable examples of the catching-up process in recent decades.
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spelling doaj-art-919fccbf7aec4543b05c7d0c2140fa812025-08-20T03:40:42ZengNicolae Titulescu UniversityGlobal Economic Observer2343-97422343-97502021-06-0191107115The Path to Euro Adoption: a Case Study of Slovenia and SlovakiaDORINA CLICHICI0PhD. Economic Integration and Financial Markets Department Institute for World Economy, Romanian Academy ROMANIA, dorina.clichici@iem.roBy the terms of their treaties of accession, the financial integration and the adoption of the euro became binding on all new Member States of the European Union. Once they meet the convergence criteria and ensure their laws are compatible with the euro area, they are legally obliged to adopt the euro. This paper aims to track the integration path into the euro area of Slovenia and Slovakia, and to find out the main lessons from these stories. The results revealed that the process of adopting the euro in both countries has been very smooth and rapid, due to a general political and public consensus driven by an efficient communication strategy. Thanks to the emphasis on macroeconomic stability throughout the pre-accession period and due to clear economic policy priorities, Slovenia managed to remedy the economic imbalances and to meet the nominal convergence criteria. In the same time, fundamental institutional reforms and foreign direct investment have allowed Slovakia to adopt an export-oriented growth model that made this country one of the most notable examples of the catching-up process in recent decades.http://www.globeco.ro/wp-content/uploads/vol/split/vol_9_no_1/geo_2021_vol9_no1_art_012.pdfeuro adoptionsloveniaslovakiabig-bang scenariodual circulationnominal convergencereal convergence
spellingShingle DORINA CLICHICI
The Path to Euro Adoption: a Case Study of Slovenia and Slovakia
Global Economic Observer
euro adoption
slovenia
slovakia
big-bang scenario
dual circulation
nominal convergence
real convergence
title The Path to Euro Adoption: a Case Study of Slovenia and Slovakia
title_full The Path to Euro Adoption: a Case Study of Slovenia and Slovakia
title_fullStr The Path to Euro Adoption: a Case Study of Slovenia and Slovakia
title_full_unstemmed The Path to Euro Adoption: a Case Study of Slovenia and Slovakia
title_short The Path to Euro Adoption: a Case Study of Slovenia and Slovakia
title_sort path to euro adoption a case study of slovenia and slovakia
topic euro adoption
slovenia
slovakia
big-bang scenario
dual circulation
nominal convergence
real convergence
url http://www.globeco.ro/wp-content/uploads/vol/split/vol_9_no_1/geo_2021_vol9_no1_art_012.pdf
work_keys_str_mv AT dorinaclichici thepathtoeuroadoptionacasestudyofsloveniaandslovakia
AT dorinaclichici pathtoeuroadoptionacasestudyofsloveniaandslovakia