Fitch: No change expected on euro policy

Fitch Ratings said its sovereign ratings for countries in Eastern Europe do not build in any expectation that the European Union authorities will allow member states to adopt the euro unless they meet the Maastricht criteria.

The ratings do not factor in any expectation that the EU authorities will allow fast-track euro adoption in response to the current economic and financial pressures facing many countries in the region, Fitch said.

The financial challenges facing some countries have raised the issue of whether early euro adoption would represent an effective policy remedy, the agency said.

However, Fitch noted that the policy is that a country can only adopt the euro once it has met the Maastricht convergence criteria covering price stability, long-term interest rates, budget deficits, government debt and exchange-rate stability.

Despite EU concerns about the problems faced by some countries in eastern Europe, its willingness to provide substantial financial assistance and the possible political attractiveness of a "quick fix," Fitch said it does not expect a relaxation of EU policy on this issue.

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