Ukraine War Set to Boost Appeal of Euro Membership, EBRD Says

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(Bloomberg) — The war in Ukraine has upended European Union security and, over time, could push more countries to join the euro region, the European Bank of Reconstruction and Development said.

While short-term political considerations will keep anti-euro EU members on their current trajectory for now, longer-term views about the merits of closer cooperation are being tested, according to EBRD President Odile Renaud-Basso.  

“There will be a lot of solidarity on how to deal with the consequences of the crisis and, in my view, that’s clearly a push toward a more united Europe and more integration,” she said in an interview in Warsaw.

Currencies of EU members with independent central banks have been hit hard by the nearby military conflict. Poland’s zloty and Hungary’s forint plunged to record lows against the euro in past days.

Some countries, including Romania and non-EU member Serbia, keep strict control over their currencies amid concern over depreciation.

Others, including Croatia and Bulgaria, are already on track to join the single-currency bloc in what Renaud-Basso sees as a “new wave of euro enlargement.” 

Authorities in Poland, the region’s biggest economy, said last week the war in Ukraine wasn’t a reason to reconsider its resolutely anti-euro stance.

The EBRD last week announced 2 billion euro ($2.2 billion) in financing for Ukraine and countries affected by refugees.

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