The Future of the Euro and Challenges for the Western Balkans


  • Jelena Damnjanović Novi Sad School of Business
  • Miroslav Jovanović Novi Sad School of Business



euro, EU, Greece, Germany, debt write-off, quantitative easening


The creation of the euro in 1999 was celebrated as one of the most important events in the European history in the 20th century. Expectations about an increase in welfare were enormous. However, all started to go downhill in the European Union (EU) from the introduction of the euro. Tis downturn started slowly, but subsequently accelerated to the extent that not only the euro, but also the EU is on the brink of collapse. Germany was the only beneficiary of the eurozone, while other countries were without obvious eurozone-related benefits. Greece is in dire economic straits from which there is no exit for at least one generation. Germany has enormous exports surpluses, but some of them will not be paid. Would Germany be better o? without such surpluses? Is the economic marriage in the eurozone becoming dreary and unsustainable? The EU should abandon the euro in order to save the project of European integration. If the Western Balkan countries continue their accession path towards the EU and pay for that enormous price (especially important for Serbia), what will they get in return? They will get an unstable and dangerously unfunctional EU, the EU in which solidarity (one of the prime EU values) is neglected. They will get the EU whose future is in doubt.


Download data is not yet available.


Cavallo, E., Eichengreen, B. and Panizza, U. (2016). Can countries rely on foreign saving for investment and economic development? Inter-American Development Bank Paper Series, No. IDB-WP-718.

Eichengreen, B., and Woods, N. (2015). Te IMF unmet challenges. Journal of Economic Perspectives, pp. 29-52.

Galofre-Vila, G., McKee, M., Meissner, C. and Stuckler, D. ‘Economic consequences of the 1953 London Debt Agreement’, VOX, 09.10.2016.

Heise, A. (2015). Euro or not euro – that is not the question! Economic well- being and the fate of the Economic and Monetary Union. Review of Keynesian Economics, pp. 443-456.

Independent Evaluation Office of the IMF (2007). The IMF Exchange Rate Policy Advice: Findings and Recommendations. Evaluation Report. IMF Washington.

Independent Evaluation Office of the IMF (2016). The IMF and the Crises in Greece, Ireland and Portugal: An Evaluation by the Independent. Evaluation Office. IFM Washington, 8 July.

Jovanović, M. (1997). European Economic Integration. London: Routledge.

Jovanović, M. (2012). Is the eurozone rescue strategy tantamount to the rearrangement of the deckchairs on the Titanic? Journal of Economic Integration, pp. 33-79.

Jovanović, M. (2013). The Economics of European Integration. Cheltenham: Edward Elgar.

Jovanović, M. (2015). The Economics of International Integration. Cheltenham: Edward Elgar.

Jovanović, M., Damnjanović, Ј. (2013). Geopolitics of the European Union: Are steps backward the way forward? Economia Internazionale/International Economics, pp. 455-482.

Jovanović М., Damnjanović, Ј. (2014). EU eastern enlargement: economic effects on new members 2000-2012. Journal of Economic Integration, pp.201-243.

Jovanović, M., Damnjanović, Ј., Mirović, V. (2016). Direktni podsticaji stanim investitorima u Srbiji – korist ili šteta. U Inovacije i preduzetništvo – pokretači razvoja i zapošljavanja (urednik N. Vukmirović). Banja Luka: Ekonomski fakultet, str. 49-58.

Keynes, J. (1973). The General Theory and After, Part II Defense and Development. London: Macmillan.

Laqueur, W. (2011). The slow death of Europe. The National Interest, 16 August 2011.

Orphanides, A. (2015). The euro area crisis five years after the original sin. MIT Sloan School Working Paper, 5147-15.

Reinhart, C. and Trebesch, C. (2015). The pitfalls of external dependence: Greece, 1829-2015. Brookings Papers, pp. 307-328.

Rickards, J. (2014). The Death of Money. London: Portfolio Penguin.

Rickards, J. (2016). The New Case for Gold. London: Portfolio Penguin.

Sawyer, M. (2015). Can prosperity return to the Economic and Monetary Union? Review of Keynesian Economics, 457-470.

Soros, G. (2014). The Tragedy of the European Union: Disintegration or Revival? New York: Public Affairs.

Vollaard, H. (2014). Explaining European disintegration. Journal of Common Market Studies, pp. 1124-1159.




How to Cite

Damnjanović, J., & Jovanović, M. (2017). The Future of the Euro and Challenges for the Western Balkans. Acta Economica, 15(26), 143–163.



Preliminary Communication