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The Impact of the Euro on Mediterranean Partner Countries

The paper discusses the impact of EMU on the 12 Mediterranean partner countries. It argues that the introduction of the euro is likely to have a positive, albeit limited, impact on the region. The Mediterranean partners will benefit from a more predictable and transparent external environment that will allow them to better exploit their comparative advantage in the long run. They will also benefit from stronger-than-otherwise output growth in Europe, as well as a potentially more competitive source of external financing.