Taras Shevchenko Kyiv National University
Faculty of Economics
Semester Project
European Monetary Union: Theory, History and Consequences
MA. Amalya Tumanyan
Kyiv 2009
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CONTENTS
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Introduction
1. What is the European Monetary Union? p> 2. History of the EMU
3.Criticisms of the EMU
Summary
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INTRODUCTION
A monetary union < is a situation where several countries have agreed to share a single currency amongst themselves. p> Economic and Monetary Union (EMU) represents a major step in the integration of EU economies. It involves the coordination of economic and fiscal policies, a common monetary policy, and a common currency, the euro. Whilst all 27 EU Member States take part in the economic union, some countries have taken integration further and adopted the euro. Together, these countries make up the euro area. p> The decision to form an Economic and Monetary Union was taken by the European Council in the Dutch city of Maastricht in December 1991, and was later enshrined in the Treaty on European Union (the Maastricht Treaty). Economic and Monetary Union takes the EU one step further in its process of economic integration, which started in 1957 when it was founded. Economic integration brings the benefits of greater size, internal efficiency and robustness to the EU economy as a whole and to the economies of the individual Member States. This, in turn, offers opportunities for economic stability, higher growth and more employment - outcomes of direct benefit to EU citizens. In practical terms, EMU means:
- Coordination of economic policy-making between Member States
- Coordination of fiscal policies, notably through limits on government debt and deficit
- An independent monetary policy run by the European Central Bank (ECB)
- The single currency and the euro area
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1. WHAT IS THE EUROPEAN MONETARY UNION?
A monetary union < is a situation where several countries have agreed to share a single currency amongst themselves. The European Economic and Monetary Union (EMU) consists of three stages coordinating economic policy and culminating with the adoption of the euro <, the EU's single currency. All member states of the European Union < are expected to participate in the EMU. Sixteen member states < of the European Union have entered the third stage and have adopted the euro as their currency. The United Kingdom <, Denmark < and Sweden < have not accepted the third stage and the three EU ...
