EURO WAITS FOR THE END OF TRANSITION

 

The countries in transition should keep their national currencies, because by introducing the Euro they would not be able to stimulate economic development, concluded the experts at the Euromoney Conference in Vienna. More and more people advocate the change of national currency with the European one because of the frequent oscillations in currency rates.
At Euromoney, one of the most important conferences in Europe, Prime Minister of Hungary, member country of the EU which still hasn’t introduced the Euro, said: “The Euro means a safe haven for a small economy.”

Years will pass until that happens but PM Gordon Bajnai thinks that the Euro should be introduced as soon as possible, because economy can not be stable with week currency.
Governor of the National Bank of Serbia also advocates transfer to Euro, but not before Serbia enters the EU. If Serbia changed the currency earlier it would make it disrespectful of the official procedure, as was the case with Slovenia and Slovakia.

Radovan Jelasic said that it would be very bad political sign and the economy would face additional problems as serious as those already existing. Albania also considers introducing Euro, but Albanian Governor Ardian Fullani thinks Albania needs reforms first and strong national currency in order to be able to enter the EU as an equal partner.

Zdravko Marić, Croatian Minister of Finance thinks that introducing Euro will be very beneficial. "We are all aware of the potential problems with introducing Euro, most of all the inflation, but we will do our best to overcome the negative effects", sad Mr. Marić at the conference.
Since Montenegro has transferred to Euro, there are no inflation problems or changes in currency rate, which suits foreign investors. "One should consider downsides as well since the introduction of Euro imposes restrictions to use of certain instruments of the monetary policy. Foreign exchange policy cannot be used for adjustment of deficit in balance of payments, and the bank cannot improve their solvency by taking the loans, said Nikola Fabris from the Central Bank, Montenegro. Serbia cannot apply the model used by Montenegro because of the EU Directive of 2000 that forbids unilateral introduction of Euro.