IMF says EU states in eastern Europe should adopt euro now

The FT discloses details of a confidential 2009 report from the International Monetary Fund, could reignite a fierce debate over strategies to assist central and east Europe, badly affected by the global economic crisis.

The IMF report was compiled to support a campaign by the fund, the World Bank and the European Bank for Reconstruction and Development to persuade the EU and eastern European states to back a region-wide anti-crisis strategy, including a regional rescue fund. The campaign failed amid widespread opposition from both west and east European states.

The report suggest that crisis-hit European Union states in central and eastern Europe should consider scrapping their currencies in favour of the euro even without formally joining the eurozone.