LONDON - Last week, central bankers from around the world assembled in Frankfurt to bask in the glory of the euro's first ten years. But for those coming from euro candidate countries, the event was a cold shower. Just as the global financial crisis has made euro membership seem more urgent and necessary than ever, euro incumbents have started floating proposals that would raise the bar for entry.

Under the proposal that was openly discussed in Frankfurt, in addition to the macroeconomic Maastricht criteria that have been in place since the euro's launch, the quality of a country's banking system would be used as an additional criterion for euro entry. Leaving aside the hypocrisy of Western governments pontificating on this topic while they are bailing out banks after massive regulatory failures, the proposal is seriously flawed.