Eastern Europe 'would reject' euro adoption

Experts have rejected claims that the volatile foreign exchange markets will push eastern European nations to adopt the euro before becoming full members of the European Union.

A report in the Financial Times had claimed the International Monetary Fund (IMF) wants countries in eastern Europe to adopt the euro to improve foreign exchange stability in the region during the current global recession.

However, analysts have poured cold water on the prospect, suggesting that the move would not significantly benefit the global economy.

"Unilateral euroisation wouldn't solve eastern Europe's problem," said David Lubin, chief emerging-markets economist at Citigroup Global Markets.

According to the Baltic Course magazine, Mr Lubin added in a research note published in the wake of the Financial Times' claims: "We don't think this idea will be developed further."

The suggestion from the IMF was thought to have been influenced by the need for stability in the world's foreign exchange markets to help the recent plans from the G20 summit to be successful.

The leaders of the world's 20 richest nations met in London last week and agreed a $1 trillion (£681 billion) package designed to stimulate the global economy and bring back some stability to the markets.

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By Paul Jarvis