The dangers of euroisation

The Interntional Monetary Fund (IMF) has recommended that Eastern European states particularly hard hit by the financial crisis should speedily introduce the euro. The daily Hospodářské Noviny is alarmed at the proposal: "If the IMF is serious, this is the best way to bury the euro. None of the countries (with the exception of Estonia) fulfilled the Maastricht criteria even before the crisis. And now they have no hope of doing so. Hungary and Latvia, who the IMF says should be particularly quick to introduce the common currency, will face enormous deficits for years. They can forget all about the three percent criterion. However rather than getting closer to the euro, these countries will move away from it. The IMF's plan is based on an extremely dangerous idea. It sees the euro as a sort of social, humanitarian project."

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