This paper investigates empirically the extent to which the ten new countries of the
recent EU enlargement are ready to join the European Monetary Union (EMU). We assess
the prospects of successful accession into the EMU using cointegration and common
trends analysis on the nominal convergence criteria specified by the Maastricht Treaty as
well as on real exchange rates and real per capita GDPs. The empirical results indicate
that the enlargement countries are partially ready to join the Eurozone, and need further
adjustments in their government policies to be fully prepared for joining the EMU.
30/11/2004
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