The effects of the COVID-19 pandemic on real convergence of the European Monetary Union

The COVID-19 pandemic has placed the European Monetary Union (EMU) in front of a new economic reality. All the health restrictions enforced at the EU level had repercussions on the real convergence of the Eurozone. In the present article, we aimed to observe how real convergence in the Euro area was...

Full description

Saved in:
Bibliographic Details
Published in:CES working papers 2023-08, Vol.XV (1), p.15-33
Main Author: Aursulesei, Tudor Mugurel
Format: Article
Language:English
Subjects:
economic crisis
Economy
euro zone
pandemic crisis
real convergence
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The COVID-19 pandemic has placed the European Monetary Union (EMU) in front of a new economic reality. All the health restrictions enforced at the EU level had repercussions on the real convergence of the Eurozone. In the present article, we aimed to observe how real convergence in the Euro area was affected by the analysis of the main economic indicators extracted from the scientific literature. Furthermore, we created an aggregate index of real convergence to determine how it was affected during the pandemic period. We put all this analysis in the context of the effects arising as a result of the pandemic and the various measures implemented at the union level for economic recovery. In the proposed article, we conclude that following the pandemic period, EMU member states abandoned the real convergence criterion. The main policy recommendation emerges from this conclusion: the need for coordination at the EMU level regarding all economic and financial policies adopted.
ISSN:2067-7693
2067-7693