- Dorothee Heisenberg
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.