- International Monetary Fund
- Published Date:
- May 2002
Into the EU
Policy Frameworks in Central Europe
A Staff Team Led by Robert A. Feldman and C. Maxwell Watson, with Peter Doyle, Costas Christou, Christina Daseking, Dora Iakova, Guorong Jiang, Louis Kuijs, Rachel van Elkan, and Nancy Wagner
© 2002 International Monetary Fund
Production: IMF Graphics Section
Cover design: Lai Oy Louie
Typesetting: Alicia Etchebarne-Bourdin
Into the EU: policy frameworks in Central Europe/a staff team headed by Robert A. Feldman and C. Maxwell Watson; with Costas Christou… [et al.].—Washington, DC: International Monetary Fund, 2002.
Includes bibliographical references.
1. European Union—Europe, Central. 2. Banks and banking—Europe, Central. 3. Finance—Europe, Central. 4. Privatization—Europe, Central. 5. Europe, Central—Economic conditions—1991–6. Europe—Economic integration. I. Feldman, Robert Alan. II. Watson, Maxwell. III. Christou, C. (Costas). IV. International Monetary Fund.
HG186.C36 168 2002
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The following symbols have been used throughout this paper:
… to indicate that data are not available;
— to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
– between years or months (for example, 2000–01 or January-June) to indicate the years or months covered, including the beginning and ending years or months;
/ between years (for example, 2000/01) to indicate a crop or fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.
This volume on the economic challenges faced by the countries of central Europe on the road to EU membership was prepared by an IMF staff team headed by Robert A. Feldman and C. Maxwell Watson. The team included Peter Doyle, who helped develop the unifying concept of the chapters, as well as Costas Christou, Christina Daseking, Dora Iakova, Guorong Jiang, Louis Kuijs, Rachel van Elkan, and Nancy Wagner. The material presented here also builds on research carried out by a number of other IMF staff members—including particularly Craig Beaumont, Robert Corker, Paul Masson, and the mission chiefs, desk officers, and resident representatives working on the central European economies.
The chapters on monetary and exchange rate frameworks and on fiscal challenges draw heavily on background papers prepared for discussions in the IMF Executive Board in the course of 2001—which reflected information available as of early July and mid-April, 2001, respectively. The intent of the chapters, however, has been to present material and analysis that is of longer-term interest—both to policymakers and the public in the central European economies and to other candidates for EU membership—and they should be read with a focus on methodological and analytical issues rather than for specific projections that are subject to change. These papers benefited from informal seminars with the European Commission and the European Central Bank—and, in an earlier version, an academic seminar at the University of Oxford, organized by Christopher Davis of Wolfson College. The chapters on real convergence and the financial sector appeared in the IMF’s Working Paper series, and benefited from seminars with World Bank and IMF staff.
Among the staff of the IMF and the World Bank whom the authors would particularly like to thank are Tam Bayoumi, Adrienne Cheasty, Michael Deppler, Dimitri Demekas, Liam Ebrill, Bernard Funck, Paul Hilbers, Peter Keller, Russell Kincaid, Tim Lane, Jimmy McHugh, Roger Nord, Kyle Peters, Marc Quintyn, Roberto Rocha, Susan Schadler, jerry Schiff, and Dimitri Tzanninis. The views expressed, however, are the sole responsibility of the authors, as are any remaining errors. The preparation of this book benefited greatly from the editorial advice of Jeremy Clift, from assistance provided by Indra Perera and Joy Rivera in preparing the text, and from the research assistance of Amber Hasan and David Maxwell.
The focus of this work on the five central European economies—the Czech Republic, Hungary, Poland, the Slovak Republic, and Slovenia—complements earlier cross-country studies prepared by IMF staff on the transition economies. In no way should it be understood to represent a view of the staff about the relative readiness of particular candidate countries to accede to the European Union.