Governor Radović Addresses the Conference in Vienna: The Euro as the Foundation of Stability in the CESEE Region

22/11/2024

At the invitation of the Austrian National Bank (OeNB) Governor, Mr Robert Holzmann, the CBCG Governor, Irena Radović, participated in a conference in Vienna titled "The euro in CESEE". The conference organised by the OeNB gathered central bank governors from several European countries, senior officials of the European Central Bank (ECB), the International Monetary Fund (IMF) and other international financial institutions and professors from reputable universities to discuss the euro's importance for the CESEE region countries - both those that have adopted the euro and those that have not yet entered the euro area or the EU.

Governor Radović participated in the panel chaired by Governor Holzmann, where the central bank governors of the Eurosystem and countries in the accession process exchanged experiences on the euro's impact on the countries' economic growth. They also discussed the relationship between the CESEE region and the euro area, particularly concerning the effects of ECB monetary policies. In her presentation, Governor Radović shared Montenegro's experiences before and after introducing the euro, underscoring the decision's importance for the country's economic stability and development.

"The introduction of the euro proved to be a strategically correct move. It brought us price and exchange rate stability, ensured the banking sector's reform and attracted a strong FDI inflow, contributing to the convergence process and the country's accelerated economic development," stated Governor Radović. She also noted that, as a highly euroised country, Montenegro is closely tied to the euro area's economic flows, contributing to its macroeconomic stability and necessitating additional efforts to align with European standards.

The panellists emphasised the importance of enhanced economic integration among the countries in the CESEE region in light of an increasingly dynamic environment and global challenges. They also deliberated on the Economic and Monetary Union (EMU) future, analysing its potential over the next 25 years.

The conference concluded with a call to intensify dialogue and cooperation to ensure sustainable economic integration models and achieve the region's long-term stability.