Help for EMU candidates?

The business newspaper the Financial Times comments on the situation of candidates for accession to the European Monetary Union in the wake of the financial crisis, saying Hungary and the Baltic states still need help. "A loan from the International Monetary Fund [for Hungary] may be helpful if it reins in government spending. Painful as that might be, it would bring Hungary closer to the eurozone.The Baltic states are grappling with a different set of problems. After years of strong growth, high inflation and massive current account deficits, their economies are slowing substantially. ...Provided Estonia, Latvia and Lithuania resist running over-loose fiscal policies and are not forced to devalue their currencies, the downturn should help balance their economies. As inflation comes down, euro entry comes within reach.The European Central Bank deserves credit for supporting Hungary with a loan. It should continue to take an accommodating stance as it shepherds new members into the eurozone."

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