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Nemec, Marián --- "Real and nominal convergence: challenges for monetary and exchange rate policy Â… the case of Slovakia" [2003] ELECD 23; in Tumpel-Gugerell, Gertrude; Mooslechner, Peter (eds), "Economic Convergence and Divergence in Europe" (Edward Elgar Publishing, 2003)

Book Title: Economic Convergence and Divergence in Europe

Editor(s): Tumpel-Gugerell, Gertrude; Mooslechner, Peter

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781843762416

Section: Chapter 17

Section Title: Real and nominal convergence: challenges for monetary and exchange rate policy Â… the case of Slovakia

Author(s): Nemec, Marián

Number of pages: 10

Extract:

17. Real and nominal convergence:
challenges for monetary and
exchange rate policy ­ the case of
Slovakia
Marián Nemec

17.1. INTRODUCTION1

EU accession has become one of the driving forces behind Slovakia's
adjustment and reform efforts. In December 1999 the Helsinki summit
approved Slovakia as a candidate for membership and negotiations for the
country's entry to the European Union are under way. After the Swedish
presidency, Slovakia had opened all 29 chapters, and negotiations for 20
chapters have meanwhile been preliminarily closed.
The European Commission has confirmed that Slovakia largely meets
the Copenhagen criteria for EU membership. Following the 2000 Regular
Report on Slovakia's progress toward accession, Slovakia can be regarded
as a functioning market economy and should be able to cope with the com-
petitive pressure and market forces within the Union in the medium term,
provided that the structural reform agenda is fully implemented and
broadened to include remaining reforms. In 2001 further progress was
achieved.
At the same time, while the accession process continues, the topics related
to real and nominal convergence and respective policy issues have to be
specified so as to outline the optimal path for the accession process.
This chapter discusses some of these issues and is organized as follows.
Section 17.2 presents the basic characteristics of the present state of the real
and nominal convergence of the Slovak economy to that of the EU. Section
17.3 deals with the current policy design and with future challenges. Section
...