26 October 2018

Politico: Hungary and Poland’s multispeed Europe

Of course, not joining the euro and being circumspect over immigration and asylum are legitimate policy choices (even if, for instance, 53 percent of Hungarians are supportive of the common European currency). But one should be under no illusion about the consequences. The monetary union is by far the EU’s most important political project, and as such it’s bound to be at the center of the bloc’s integration efforts.[...]

As the United Kingdom, the EU’s second (or third, depending on what measure one uses) largest economy, leaves the bloc altogether, the periphery will look much less attractive. True, there will still be Denmark, with its opt-out from the common currency, and Sweden, where voters rejected adopting the euro in a 2003 referendum. Few others, however, see non-euro EU membership as an attractive destination. Bulgaria, for example, agreed in July with the Eurogroup on initiating the process leading to membership in the monetary union — a first such attempt since January 2014, when Latvia and Lithuania adopted the common currency.[...]

Bulgaria has also committed itself “to thoroughly implement the reforms monitored by the Commission under the Cooperation and Verification Mechanism in the areas of judicial reform and the fight against corruption and organized crime.” It is hard to imagine the governments in Budapest and Warsaw acquiescing to similar demands, even symbolically, while also continuing in their widespread authoritarian abuses. [...]

As a result, the periphery is going to be an increasingly lonely, awkward place. It was, after all, the inability to commit itself fully to the European project that helped to drive the U.K. to its 2016 Brexit referendum. For Poland, Hungary, and also the Czech Republic the problem is primarily political. Staying out of the eurozone denies the three post-communist countries a place at the table for weighing in on key decisions.

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