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Jour Fixe with Assem Dandashly, 6 February 2012
We kindly invite you to the Jour Fixe presentation by Assem Dandashly, who is going to present a paper with the title ”Bringing Political Institutions back in - The Effects of Post-1989 Transition on Euro Adoption in the Czech Republic and Poland. Gary Marks will be discussant.
The Jour Fixe begins at 4.15 pm (16.15 Uhr) and takes place at Ihnestr. 26, Room 202.
Following their accession to the EU on May 1st, 2004, ten New Member States (NMS), and two other states that joined in 2007, are expected to fulfill the so-called convergence criteria as spelled out in the Maastricht Treaty and enter the last stage of Economic and Monetary Union (EMU) by irrevocably fixing the exchange rate and adopting the euro. In so doing, the NMS will follow other euro area members by giving up part of their sovereignty. The ability to set monetary policy will be transferred to the European Central Bank (ECB) and their formal involvement in the setting of monetary policy will be limited to having one vote on its Governing Council. So why some NMS have been working hard to adopt the euro while others show no interest? Only three EU member states that are Central and East European Countries (CEECs) have adopted the euro. Slovenia and Slovakia joined the euro area in 2007 and 2009 respectively. Estonia only entered the euro area in January 2011. This paper focuses on two CEECs—the Czech Republic and Poland—that have not adopted the euro yet. As per the 2003 Treaty of Accession, the NMS have to adopt the euro one day, but it does not specify a time frame. Neither the European Commission nor the ECB are pushing the NMS to rush to adopt the euro. Besides, the case of Sweden set a precedent for the NMS since Sweden does not have an official opt-out—as do the United Kingdom (UK) and Denmark. The questions this paper seeks to answer are: Why have the Czech Republic and Poland not yet adopted the euro? Why have the Czech Republic and Poland moved away from their earlier commitment to adopt the euro quickly? To answer these questions, this study uses a historical institutional approach in order to understand the correlation between the transition period and institutional construction post-1989 and the euro adoption policies up until 2009. The paper makes two main arguments: (1) The political institutional building in the Czech Republic and Poland created political systems with veto points that blocked euro adoption. And (2) following 1993, the public opinion regarding euro adoption in both countries has been largely shaped by the political elites’ perceptions.