Lessons From the Euro Area
by Zsolt Darvas on 21 January 2010
Download: Hungarian
Category: OPINION PIECES AND COLUMNS
Topics: Budgetary and monetary policies, New Member States, Enlargement and Neighbourhood
Writing in leading Hungarian business daily Világgazdaság, Resident Fellow Zsolt Darvas examines what the financial crisis has taught us about various euro-area economies and what lessons that holds for Hungary's possible accession into the euro zone. Despite the difficulties of Greece, Ireland and others, he argues, adopting the euro is still the best option for Hungary, while the Czech Republic and Poland would benefit from staying outside the euro area for a longer period.
The EU’s Role in Supporting Crisis-Hit Countries in Central and Eastern Europe
by Zsolt Darvas on 31 December 2009
Download: English
Category: POLICY CONTRIBUTIONS
Topics: New Member States, Enlargement and Neighbourhood
The crisis has hit central and eastern European countries harder than other regions of the world. In this policy contribution Resident Scholar Zsolt Darvas looks at the role of the EU and its institutions in supporting crisis-hit CEE countries; the stabilising effects of the EU’s coordinated multilateral financial assistance; and the commitment shown by Western European banks to the region. However Darvas argues that there were certain actions, or failures to act, on the part of EU institutions and governments, that have amplified the effects on CEE countries of the crisis. The European Central Bank has given little direct support to non-euro-area countries, and the EU has done little for EU neighbourhood countries. Meanwhile, euro-area membership has shielded from the crisis some countries with worse fundamentals than certain CEE countries.
The Baltic Misery Needs a Solution
by Zsolt Darvas on 10 December 2009
Download: English
Category: OPINION PIECES AND COLUMNS
Topics: New Member States, Enlargement and Neighbourhood
Writing for the European policy website Euractiv.com, Resident Fellow Zsolt Darvas proposes a solution for the Baltic states, based off his Policy Contribution The Baltic Challenge and Euro-Area Entry. Darvas argues that the economic rationale surrounding certain aspects of the criteria for entry into the Euro area are unsound and should be reformed, allowing for immediate Euro-area entry for the Baltic states. The piece was also published in the leading Lithuanian business daily Verslo Zinios.
The Baltic Challenge and Euro-Area Entry
by Zsolt Darvas on 30 November 2009
Download: English
Category: POLICY CONTRIBUTIONS
Topics: New Member States, Enlargement and Neighbourhood
Resident Fellow Zsolt Darvas takes a look at the issue of the Baltic states - Estonia, Latvia and Lithuania - and the challenges facing those three countries in the aftermath of the financial crisis. He argues that because it is in the broader European interest to prevent a collapse in the Baltics, the best option is immediate euro entry at a suitable exchange rate supported by appropriate resolution in order to manage the resulting debt overhang. However, there seems to be no legal basis for this under the current euro accession criteria. Furthermore, the economic foundations of the criteria are fundamentally flawed, as euro-area members continue to violate the criteria while the EU's expansion to 27 members has made the criteria tougher for new member states to meet themselves. Ultimately, the European Council has the ability to reform the criteria without a formal treaty change. The Council should do so, the author argues, and allow for more meaningful benchmarks for all future euro-area applicants.
Alternatives Internationales: Après l'euphorie, l'addition
by Zsolt Darvas on 31 August 2009
Category: OPINION PIECES AND COLUMNS
Topics: New Member States, Enlargement and Neighbourhood
Resident Scholar Zsolt Darvas discusses the disproportionately negative effect the financial crisis has had on Central and Eastern European countries. He proposes a few recommendations to help the CEE countries get back on their feet, including more financial assistance from the Western European countries that helped cause the crisis, and a change in attitude toward euro introduction. The published op-ed is available in French, as well as the full-length piece written in English.