The process of euroisation and the economic development of the western Balkan Countries

The trend of euroisation which started with the formal introduction of euro within Eurozone, was even extended over the countries from the Western Balkans, while two of them (Kosovo and Montenegro) have unilaterally introduced euro as the national currency without fulfilling Maastricht criteria. Other Balkans countries such as Serbia, Albania and Macedonia, were characterized with more or less extensive share of euro denominated deposits and loans in the banking sector balances. At the beginning, the euroisation, brought positive movements in these countries especially to those ones who have low development and growth rate. However , the sovereign debt crisis which severely “attacked” the euro zone countries , change the attitude of the monetary authorities , banks and private entities in the West Balkans countries to be more cautious regarding the extensive use of euro in their financial transactions , savings and credit activities. This paper aims to analyze the different levels of euroisation in different West Balkan countries and the impact which euroisation made on the level of their economic development, and financial stability