Charting a course towards successful euro adoption. Newest EU entrants should reap net gains from joining the euro area

One of a series of articles in this issue of Finance and Development under the theme 'Europe's conundrum', which focus on the economic challenges facing the European Union following the accession of 10 new members on May 1, 2004.

Unlike the original members of the European Union, the 10 new members are obligated to adopt the euro although they can choose when to do so. The author says the new members stand to benefit from joining the euro area over the long term but must meet rigorous policy requirements, including fiscal adjustment criteria, low inflation, and greater wage and price flexibility.

• Primary Source

http://www.imf.org/external/pubs/ft/fandd/2004/06/index.htm http://www.imf.org/external/pubs/ft/fandd/2004/06/index.htm

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