The more the merrier

Many investors worry that 10 new 'poor' countries joining the euro will undermine the single European currency. While the euro could suffer in the transition phase, fundamentals suggest the European currency will be strengthened in the long run as the new and faster growing members boost overall growth in the EMU region, although marginally. More importantly, the low inflation mandate of the ECB will be unaffected by euro enlargement. According to the EU membership criteria, the 10 accession countries (AC10) will join the European Monetary Union (EMU) and adopt the euro as their currency...