EU unveils plan to help countries join the euro but there are ‘not any strict deadlines’

EUROPE announced fresh measures on Wednesday to further integrate the euro zone and assist members in joining the group’s financial union, the euro.

European Commission Vice President Valdis Dombrovskis, who also serves as the European Commissioner for the Euro and Community Dialogue, presented the contours of a package for the completion of Europe’s Economic and Monetary Union (EMU) within an interview with CNBC from Brussels.

“We are currently proposing … How we may support the preparatory work and necessary reforms in those countries wishing to join euro area,” Dombrovskis explained on Wednesday.

“And by this we will be showing that euro area should be enlarging, and the commission is ready to guide those member states focusing on this to ensure that they can come to be ready to join the euro area and will prosper within the euro area.”

Europe’s Economic and Monetary Union symbolizes the band of policies targeted at converging EU member states’ economies through coordination of monetary and fiscal policies and make use of a basic currency, the euro.

EU leaders are putting special emphasis on reform as well as about deepening the union’s cooperation at a time of rising discontent and populist rhetoric across Europe.

Amid the EU’s second biggest economy – Britain – departing the union and several other member states like Denmark and Austria witnessing anti-EU rhetoric from right-wing politicians, initiatives to further unify existing member states are crucial.

Strengthening the EU can be seen by many while a strategic endeavor to counter the impact of Russia, specifically in Baltic declares like Lithuania, where Dombrovskis formerly offered as prime minister.

“We propose dedicated equipment to support structural reforms in euro area member states, and we propose (a) dedicated facility to support those member states performing toward euro accession,” he told CNBC. This as well involves a movement to “transform and strengthen” the European Stability Device (ESM) by turning it into a European Monetary Fund, which has not but been created.

The ESM has acted as a safeguard to member states in financial trouble, providing instant financial assistance and proving instrumental in quelling the sovereign personal debt and banking crises that plagued several EU states following the 2008 recession.

Dombrovskis also tabled the thought of a probable European minister of overall economy and finance.

Concurrently, the vice president maintained: “Not any country will be forced to join the euro area … There are no strict deadlines. What we’re proposing now could be a tool to work with those member states ready to become a member of the euro area and actively working in this way.” He known as Bulgaria as one of these member states.

Read more on: