TITLE

Policies to smooth the path to euro area accession

PUB. DATE
September 2005
SOURCE
OECD Economic Surveys: Slovak Republic;Sep2005, Vol. 2005 Issue 16, p49
SOURCE TYPE
Country Report
DOC. TYPE
Country Report
ABSTRACT
Although Slovakia is making good progress towards fulfilling the Maastricht criteria for accession to the euro area, the challenges posed by the "impossible trinity" suggest that risks still remain. Recent fiscal and inflation outcomes have been good and the strong appreciation pressures on the koruna have recently abated. However, the risk of excessive exchange rate appreciation combined with a rebound in inflation cannot be eliminated, along with the risk of insufficient fiscal consolidation. A number of policy guidelines are proposed to minimise these risks and to underscore the credibility of Slovakia's commitment to structural reform and prudent macroeconomic management.
ACCESSION #
18789296

 

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