Advantages And Disadvantages Of European Union

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Economic and Monetary Union
The European Union started in the year 1957; it is an international and inter-governmental organization which represents a major step towards the integration of the economies under the European Union. Where states come together based on common cause to increase the economic and political ability. European Union has been changing rapidly in the globalized world with 30 trillion Euros. The EU now represents the largest economy in the world. In 2012, European Union was awarded the Nobel Peace prize for its contribution for over 6 decades in the area of peace, advancing democracy, and unionizing Europe.
In 1979, European Monetary System (EMS) was launched with 8 member states. The main goals of EMS was to prepare members
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All the restrictions on movement of capital were removed for the member states.
The cooperation between the central banks of the member states increased and they played a very important role in monetary cooperation. The additional responsibilities included holding consultations, promoting coordination of the monetary policies of the member states in order to maintain price stability.
The treaty of Rome needed to be revised in order to establish required institutional structure. The negotiations ended with the signing of the treaty of Maastricht on 7 Feb 1992, this was first agreed on December 1991.
Second Stage:
The second stage began with formation of the European Monetary Institute (EMI) which gave rise to committee of governors. EMI did not share the responsibility if forming monetary policies in the European Union but took up the following
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On 25th May 1998, the 11 participating member states appointed the President, the Vice-President and the four members of the Executive Board of the European central bank. The European Central Bank was formed as the result of these appointments that came into force on 1 June 1998. Euro-system now consists of the European Central Banks and national central banks of the participating member states. The Euro-system was responsible for formulating and defining the single monetary policy, which was to take place in third stage. European Central Bank in the rest of 1998 took charge of finally testing the systems and
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