Weber on challenges to convergence in larger EU

In the speech 'Challenges to convergence in the larger EU' given on 9 March, Axel Weber of the Deutsche Bundesbank pointed out that successfully coping with the growing diversity of the EU economy after enlargement requires that monetary, fiscal and economic policy fulfil their respective tasks.

"ERM II lends credibility to new member countries owing to the implied protection of the Eurosystem. However, vulnerabilities for the new member states remain. These stem mainly from rapid credit growth

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