About: ERM

Euro & Finance 16-10-2003

Enlargement and the euro

All future members of the European Union will be eligible to join the European single currency, the euro, in accordance with the provisions of the Maastricht Treaty. The ten countries that are due to join the EU on 1 May 2004 have all expressed interest in joining the eurozone at the earliest possible time. However, monetary integration may take longer for some future members, notably Poland and Hungary, whose budget deficits are deteriorating while unemployment is soaring. The future members will also have to make further efforts toward catching up to EU levels of income per capita, which requires hard work in the area of labour markets and fiscal policy reform.