The first round of new ERM entrants (Estonia, Lithuania, Slovenia) is on track for EMU entry in January 2007, followed by Latvia in 2008. These are very strong candidates for EMU, and their bond yields have already fallen close to euro-zone levels. However, the largest economies among the 10 new EU entrants still have a more uncertain route to EMU. The Czech and Slovak bond markets are also close to euro-zone yield levels, and appear to be underestimating the risks involved.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services