Slovensko na ceste do Európskej menovej únie
SLOVAKIA ON ITS WAY TO THE EUROPEAN MONETARY UNION

Summary/Abstract: The accession of Slovakia to the EU opens at the same time the way into the European Monetary Union (EMU), which represents current culmination in the West – European integration. The formation of EMU was preceded by the discussion on criteria for the optimal currency area (OCA). This discussion was opened by R. A. Mundell by his article A Theory of Optimum Currency Areas. While defining OCA R. A. Mundell stressed the importance of high mobility of production factors (mainly labour force) as a factor en-surig full employment in case one region faces the asymmetrical shock. Further OCA criteria (open economy, the degree of commodity diversification, elasticity of wages and prices, the degree of cycle synchronising etc.) were demonstrated by R. I. McKinnon, P. B. Kennen, J. C. Ingram and others. The economists often wonder, whether EMU is OCA. By seeking an answer to this problem the economists started to deal with the problem of benefits and costs (risks) linked with the EMU entry. Empirical studies mostly concluded that EU-15 does not represent OCA. Interesting results are in the works of T. Bayoumi and B. Eichengreen, who pointed out on the basis of the so-called OCA index that apart from the „hard core“ led by Germany there is also a group of countries gradually converging towards OCA and a group showing low convergence. Considering the EMU history tells us that in the Eurozone no major disturbances have occurred so far and that single monetary policy has been more or less successful. The first serious test of the EMU strength was the last recession which demostrated itself in the Eurozone only by the cooling-off period. The extension of EMU will present more severe test of its stability – this, however, will take place no sooner than in the year 2007. The approaching date of EU entry revived in candidate countries the discussion on benefits and costs linked with the EMU membership. Candidate countries expect posi-tive balance of benefits and costs, in some cases, however, in the long run only. Fulfilment of Maaastricht convergence criteria is the prerequisite of the EMU member-ship. The evaluation of fulfilment of these criteria shows that at successful accomplishment of necessary reforms Slovakia could gradually approach most successful candidate coun-tries and thus also EMU. One can positively appreciate fiscal stability in terms of public debt (though not its tendency) and the exchange rate stability. The inflation criterion (inflation convergence) will be more complicated to fulfil. Most complex task, however, will be to decrease the public finance deficit. Slovakia’s approach towards the EU is not decided only by the fulfillment of Maas-tricht criteria but above all by the progress in real convergence and by the fulfillment of microeconomic criteria developed by OCA theories. As for the overall structure of economy after ten years of Slovakia’s transformation, the country after all approached West European standards.

• Details
• Contents