Eurozone enlargement

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The second report of the research projekt „Ezoneplus - The Eastward Enlargement of the Eurozone“ deals with the question how economic and social policies will respond to a widening of the currency union. It covers three decisive policy areas: Fiscal & Monetary Policies, Exchange Rate Policies and Labour Market & Social Policies. The key insight is that find-ing an optimal mix of policies not only hinges upon matters of economic efficiency but also upon overcoming deeply entrenched political and social conflicts. The research consortium, supported by the EU's 5th Framework Programme, consists of Freie Universität Berlin (Germany), University of Tar-tu (Estonia), VATT institute (Finnland), University of Bologna (Italy), War-saw School of Economics (Poland), University of Evora (Portugal), and the IER institute (Slovenia).