You searched for: Content Type Working Paper Remove constraint Content Type: Working Paper Publishing Institution Centre for European Policy Studies Remove constraint Publishing Institution: Centre for European Policy Studies Topic International Trade and Finance Remove constraint Topic: International Trade and Finance
- Author: Daniel Gros
- Publication Date: 05-1999
- Content Type: Working Paper
- Institution: Centre for European Policy Studies
- Abstract: Economic recovery in the region requires stable currencies and open markets. The best way to establish these two basic conditions quickly is for the countries concerned to immediately link their currencies to the euro via a currency board and join the customs union of the EU. The EU should support this radical approach financially in two ways: a) through compensation for lost tariff revenues (conditional on clean and efficient border controls), and, b) emergency loans to acquire the necessary backing for the currency board. The currency boards should graduate to full euroisation in 2002. The total cost for the EU would be modest: around 2 billion euro p.a. if all countries participate. A market-led approach that pays local hosts to house refugees would ensure that the expenditure on refugees benefits the local economies.
- Topic: Development, Economics, International Trade and Finance, Migration
- Political Geography: Europe, Eastern Europe