EEK: Euro Accession At EEK15.65/EUR

Risks to the Estonian currency board have mitigated sharply alongside the stabilization of global credit markets and expectations for a tentative macroeconomic recovery in 2010. The maintenance of the peg through the recession, in conjunction with the government's success in fulfilling all five Maastricht criteria for eurozone accession in 2009, will set the stage for abandonment of the kroon in place of the euro at the current exchange rate of EEK15.65/EUR. Financial and macroeconomic volatility in the eurozone will remain a risk in the short term however, which will lead to risks in a delay in the accession date to 2012.

To read the full article, please choose one of the following options: