Eurozone will integrate and expand at same time, Dijsselbloem says

Expansion and integration of the 19-country eurozone will continue simultaneously and it is not a choice of one or the other, Eurogroup President Jeroen Dijsselbloem said on Friday.

"These processes will continue in parallel," Dijsselbloem, who is also the Dutch finance minister, told a news conference in the Estonian capital Tallinn. "I don't believe countries should be forced or pushed into this. It is not wise or realistic. So expanding the eurozone will continue and we need to strengthen it." 

The European Central Bank said in May that overall financial integration in the euro area "stalled" last year. Banking union and capital markets union are "undoubtedly the two central policy initiatives," it said. Integration should create a more effective monetary union and strengthen financial stability.

All 28 European Union states, except the UK and Denmark, are required to join the currency bloc. To do so they must meet 'convergence criteria' to ensure their is no disruption to the eurozone upon accession. They cover controlled inflation, sound public finances, exchange rate stability and long-term interest rates.

The EU nations outside the eurozone are Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania and Sweden.

The Eurogroup is is an informal body where eurozone ministers discuss matters concerning their shared responsibilities related to the currency. Its main task is to ensure close coordination of economic policies and also aims to promote conditions for stronger economic growth.

Following today's talks in Tallinn, the Eurogroup is scheduled to meet in Luxembourg on October 9.

(Alistair Holloway, alistair.holloway@wort.lu, +352 49 93 739)