The Introduction of the Euro and the Financial Instability in Slovenia: Lessons and Policy Recommendations
The goal of this contribution is to present the Slovenian experience related to the introduction of the euro (which occurred at the beginning of 2007, after the accession to the European Union (EU) in May 2004) and pass on the lessons that can be learned and recommendations that can be given to countries which will join the Economic and Monetary Union (EMU)1 at a later stage. The Slovenian experience is described in three phases: a) the pre-accession period which took place from the proclamation of independence in 1991 to 2006, b) the moment in which euro was introduced in January 1, 2007 and c) the economic developments during the EMU membership between 2007 and 2013. In order to establish the positive and negative consequences of the Eurozone membership, the economic results for the pre-accession and post-accession period were compared. As Slovenia entered the exchange rate mechanism (ERM II) less than two months after its accession to the EU, the effect of fixing the exchange rate could be observed already from 2004, and not only from 2007.
The social, political and economic consequences of the EMU membership can be measured by hard statistical indicators and/or soft social indicators. In this paper I will focus on the hard economic indicators to which I will add some social statistical indicators. There is no doubt that the accession of Slovenia to the EU in 2004 and the EMU in 2007 improved the country’s stability, security and image, and boosted...
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