IMF: New Member States Should Enter the Eurozone

The Financial Times has published findings in a previously confidential report by the International Monetary Fund claiming that:

“Without euroisation, addressing the foreign debt currency overhang would require massive domestic retrenchment in some countries, against growing political resistance.”

The IMF goes further to suggest the introduction of Euro in Eastern Europe states even without formally joining the eurozone, as well as a relaxation of entry rules for the eurozone.

Such proposals are objected in principle by the European Central Bank, Member States in the eurozone, and even some governments in Eastern Europe. The IMF is well aware of that fact, so it should have really serious motives for disclosing its report.

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