Madariaga - College of Europe Foundation

15 December 2010, Brussels

Taking Estonia’s entry into the eurozone on 1 January 2011 as a test case for all candidate Member States whose level of development is fairly below the eurozone average and which are engaged in a real convergence process, this Citizen’s Controversy addressed two main questions. On the one hand, what are the costs of the loss of the autonomy of monetary policy (interest rates and exchange rates) for converging economies, which are most exposed to inflation especially when the eurozone interest rate is low? On the other hand, is a very low level of corporate taxation a valid and fair way to attract Foreign Direct Investment that is badly needed for the growth and balancing of current deficits? Will diverging collective preferences not hamper advancement towards a more accountable governance of the eurozone? Beyond the criteria of nominal convergence, should access to the EMU not also take into consideration parameters of a more structural and political nature?

With Marek Dabrowski, President of the Center for Social and Economic Research (CASE) in Warsaw, and György Surányi, Head of Central and Eastern Europe Region, Intesa Sanpaolo Group, former President of the National Bank of Hungary.

  Final Report