1-17 of 17 Results

  • Keyword: economic and monetary union x
Clear all

Chapter

This chapter provides an introduction to economic and monetary union (EMU). It describes the key components of EMU and what happens when countries join. EMU was the result of decades of collaboration and learning, which have been subdivided here into three periods: 1969–91, taking us from the European Council’s first agreement to set up EMU to Maastricht, when the European Council included EMU in the Treaty on European Union (TEU); 1992–2002, from when plans for EMU were being developed to the irrevocable fixing of exchange rates; and 2002 onwards, once EMU had been established, and euro banknotes and coins were circulating in member states. Next, the chapter reviews various theoretical explanations, both economic and political, accounting for why EMU was created and looks at some criticisms of EMU. Finally, the chapter discusses how EMU has fared under the global financial crisis and the sovereign debt crisis. These crises brought to the fore various imperfections in the design of EMU. This section discusses what changes have been made since 2009 to address those flaws and at what we may expect in the years to come.

Chapter

This chapter introduces economic and monetary union (EMU), describingthe key components of EMU and what happens when countries join. EMU was the result of decades of collaboration and learning, divided here into three periods: 1969–91, from the agreement to creation to its inclusion in the Treaty on European Union (TEU); 1992–2002, from having the plans for EMU to the irrevocable fixing of exchange rates; and 2002 onwards, with EMU established and euro banknotes and coins circulating in member states. The chapter reviews various theoretical explanations, both economic and political, for the creation of EMU and considers some criticisms of EMU. The chapter discusses how EMU has fared under the global financial crisis, the sovereign debt crisis, and the COVID-19 pandemic. These crises highlighted various imperfections in the design of EMU and provided opportunities for further development. This chapter discusses changes made since 2009 to address those flaws and what may be yet to come.

Chapter

Dermot Hodson and Uwe Puetter

This chapter discusses the European Union’s (EU) response to the euro crisis that emerged in late 2009, two years after the global financial crisis struck. It identifies the challenges this crisis has posed to the existing institutional set-up of economic and monetary union (EMU) and shows that it had a lasting impact on discussions over the EU’s future well beyond its most dramatic moments. A timeline of the euro crisis is provided and the main changes to the institutional framework of European economic governance at the time of writing are reviewed. The chapter considers whether the crisis was caused by a deficit of centralized decision-making and whether it has served, in turn, as a catalyst for deeper economic and political integration in the euro area and the Union more generally. The consequences of the crisis for the EU’s legitimacy are also explored from competing theoretical perspectives.

Chapter

Dermot Hodson and Uwe Puetter

This chapter discusses the European Union’s (EU) response to the euro crisis that emerged in late 2009, two years after the global financial crisis struck. It identifies the challenges this crisis has posed to the existing institutional set-up of economic and monetary union (EMU) and shows that it had a lasting impact on dicussions over the EU’s future well beyond its most dramatic moments. A timeline of the euro crisis is provided and the main changes to the institutional framework of European economic governance at the time of writing are reviewed. The chapter considers whether the crisis was caused by a deficit of centralized decision-making and whether it has served, in turn, as a catalyst for deeper economic and political integration in the euro area and the Union more generally. The consequences of the crisis for the EU’s legitimacy are also explored from competing theoretical perspectives.

Chapter

This chapter examines the various attempts to create the economic and monetary union (EMU), which first became an official objective of the European Community (EC) in 1969 but was achieved only thirty years later. The chapter first provides a historical background on efforts to create the EMU, including long-standing debates between France and West Germany on its design, before discussing the launch of the single currency, the euro, and its subsequent progress up to and including the eurozone crisis in the late 2000s. On the eurozone crisis, it considers both the short-term efforts at crisis management and the long-term reforms that were implemented in an attempt to prevent further crises. Finally, it considers some of the explanations for and critiques of EMU, including critiques of the responses to the eurozone crisis that have been offered by various academic commentators.

Chapter

13. A Special Case  

The United Kingdom and the European Union

Desmond Dinan

This chapter examines the United Kingdom's troubled relationship with the movement for European integration and with the European Union more generally. Citing speeches made by leading British politicians over the last seventy years, including Winston Churchill, Harold Macmillan, Margaret Thatcher, and David Cameron, the chapter outlines four distinct stages of British association with the EU: a period of detachment in the early years; involvement in a lengthy accession process and renegotiation of membership terms; engagement in effort to reform the budget and launch the single market programme; and growing disillusionment as the EU strengthened along supranational lines and extended its policy remit, notably by embracing the economic and monetary union (EMU). These periods cover a range of important developments, such as the European Coal and Steel Community (ECSC), the European Economic Community (EEC), the EMU, and the Single European Act.

Chapter

This chapter examines the connection between German unification and the economic and monetary union (EMU), with particular emphasis on the relationship between the acceleration of European integration in the late 1980s and the seismic geopolitical shifts in Central and Eastern Europe, culminating in the collapse of the Soviet Union in 1991. Following a review of relations between the European Community (EC) and the Soviet Union on the eve of those momentous events, the chapter explains how the rapid integration in Western Europe became intertwined with disintegration in Central and Eastern Europe. It shows that the collapse of the Soviet bloc had a profound impact on the European Union as ten newly-independent Central and Eastern European states clamoured for membership. The chapter concludes with an assessment of EU enlargement in the post-Cold War period.

Chapter

After twenty years of continuous deepening and widening, European integration has entered an era of recurrent crises. Most students of the European Union (EU) seem to agree that the constitutional equilibrium between intergovernmental and supranational institutions has changed. Some see ‘new intergovernmentalism’ and ‘integration without supranationalization’ prevailing. Others contend that we are witnessing a series of functional and institutional spillovers empowering supranational institutions. This chapter argues that governance approaches are particularly useful to address the puzzling counter-positions represented in the current debate about the ‘nature of the beast’. They are better equipped to explore how and to what end institutional structures and processes have responded to the crises than mainstream integration theories. The chapter starts with introducing the ‘governance turn’ in EU studies as the attempt of EU scholars in the early 1990s to capture the nature of the EU. It then presents a typology that is based on a broad concept of governance as institutionalized forms of political coordination. The empirical part of the chapter uses this typology to give an overview of the structures and processes of EU governance before applying it to the financial and the migration crises. The chapter concludes with a discussion of the major challenges for European integration (theories) from a governance perspective, particularly with regard to managing current and preventing future crises.

Chapter

Helen Wallace, Mark A. Pollack, and Alasdair R. Young

This text examines the processes that produce policies in the European Union — that is, the decisions (or non-decisions) by EU public authorities facing choices between alternative courses of public action. It considers the broad contours of the EU policy-making process and relevant analytical approaches for understanding that process. It includes case studies dealing with the main policy domains in which the EU dimension is significant, including competition policy, the common agricultural policy (CAP), the economic and monetary union (EMU), enlargement, common foreign and security policy (CFSP), justice and home affairs (JHA), and energy and social policy. This chapter discusses the significant developments that have impacted EU policy-making since the sixth edition, summarizes the text’s collective approach to understanding policy-making in the EU, and provides an overview of the chapters that follow.

Chapter

This chapter focuses on the first years of the European Economic Community (EEC). It describes the early 1960s as a period of apparent success for the supranational elements within the EEC, noting the rapid progress made towards the creation of both a common market and a common agricultural policy. The chapter also examines the crisis sparked by France’s decision to boycott meetings of the Council of Ministers in response to proposals for a more supranational method of funding the EEC budget; the impact of this crisis on the process of European integration; the so-called Luxembourg Compromise; and the Hague Summit. It concludes by discussing the EEC’s expansion of its membership at the start of the 1970s, as well as its first moves towards an Economic and Monetary Union and a Common Foreign and Security Policy.

Chapter

This chapter examines how France's dissatisfaction with de facto German dominance of the European Monetary System (EMS) set the European Community (EC) on the road to the economic and monetary union (EMU) in the late 1980s. It first considers the conduct and outcome of the Maastricht negotiations on EMU before discussing the rocky road to the launch of the single currency in 1999 and the experience of EMU since then. In particular, it analyses the difficulty of enforcing the Stability and Growth Pact for fiscal discipline among participating member states. It also looks at the Delors Committee and the role of Bundesbank president Karl-Otto Pöhl. Finally, the chapter explores attempts to coordinate fiscal policy management as well as the onset and impact of the eurozone crisis.

Chapter

7. Policy-Making under Economic and Monetary Union  

Crisis, Change, and Continuity

Dermot Hodson

This chapter examines the role of the economic and monetary union (EMU) in the European Union’s macroeconomic policy-making. As of 2015, nineteen members of the euro area have exchanged national currencies for the euro and delegated responsibility for monetary policy and financial supervision to the European Central Bank (ECB). EMU is a high-stakes experiment in new modes of EU policy-making insofar as the governance of the euro area relies on alternatives to the traditional Community method, including policy coordination, intensive transgovernmentalism, and delegation to de novo bodies. The chapter first provides an overview of the origins of the EMU before discussing the launch of the single currency and the sovereign debt crisis. It also considers variations on the Community method, taking into account the ECB and the European Stability Mechanism.

Chapter

7. Economic and Monetary Union  

An Enduring Experiment?

Dermot Hodson

This chapter examines the role of the economic and monetary union (EMU) in the European Union’s macroeconomic policy-making. As of 2015, nineteen members of the euro area have exchanged national currencies for the euro and delegated responsibility for monetary policy and financial supervision to the European Central Bank (ECB). EMU is a high-stakes experiment in new modes of EU policy-making insofar as the governance of the euro area relies on alternatives to the traditional Community method, including policy coordination, intensive transgovernmentalism, and delegation to de novo bodies. The chapter first provides an overview of the origins of the EMU before discussing the launch of the single currency, the sovereign debt crisis, and economic responses to Covid-19. It also considers variations on the Community method, taking into account the ECB and the European Stability Mechanism.

Chapter

John Peterson and Alberta Sbragia

This chapter examines some of the most important areas of policy-making in the European Union. It first explains how EU policy-making differs from national policy-making before discussing the most important policies aimed at building the internal market and limiting its potentially negative impact on individuals, society, and the environment. The EU’s ‘market-building’ policies include competition policy, trade policy, and the Economic and Monetary Union (EMU), while ‘market-correcting’ and ‘cushioning’ policies include the common agricultural policy, the cohesion policy, and environmental and social regulation. The chapter shows how these policies are made and also why and how they matter. It also compares policy types in the EU.

Chapter

Desmond Dinan

This edition examines the origins and evolution of the European Union and the development of European integration from the immediate post-World War II period, when politicians and the public seemed willing to share national sovereignty for the sake of greater security, to the shock of the eurozone crisis nearly seventy years later, when the EU lacked public and political support. Far from existing in isolation, the volume shows that the European Community and, later, the EU was inextricably linked with broader regional and international developments throughout that time. It features contributions from leading scholars of the EU, who discuss a wide range of issues including the common agricultural policy (CAP), the single market programme, the economic and monetary union (EMU), and EU enlargement.

Chapter

Mark A. Pollack, Christilla Roederer-Rynning, and Alasdair R. Young

The European Union represents a remarkable, ongoing experiment in the collective governance of a multinational continent of nearly 450 million citizens and 27 member states. The key aim of this volume is to understand the processes that produce EU policies: that is, the decisions (or non-decisions) by EU public authorities facing choices between alternative courses of public action. We do not advance any single theory of EU policy-making, although we do draw extensively on theories of European integration, international cooperation, comparative politics, and contemporary governance; and we identify five ‘policy modes’ operating across the 15 case study chapters in the volume. This chapter introduces the volume by summarizing our collective approach to understanding policy-making in the EU, identifying the significant developments that have impacted EU policy-making since the seventh edition of this volume, and previewing the case studies and their central findings.

Chapter

Bastiaan van Apeldoorn and Laura Horn

This chapter examines European integration from the perspective of critical political economy. It first outlines a historical materialist framework for understanding European integration against a broader context of capitalist restructuring; focusing in particular on neo-Gramscian perspectives but also highlighting other strands of critical analysis. The chapter then proceeds with an integrated analysis of economic and monetary union (EMU) as a political project. With a focus on continuity and changes within the political economy of neo-liberalism, the euro crisis serves as a reference point to illustrate the strengths and contributions of critical political economy. Finally, contemporary perspectives on contestation and resistance in European integration are discussed.