Economic And Monetary Union Of The European Union

Addressing some issues, the European Union decided to issue 750 million Euros in order to start the process of financial stability for the whole union (Mckee 524). Over time, the union learned that that the amount of money was not enough in order to help each countries’ individual financial crisis. As of now, the union has to increase the amount of money they are feeding to countries in hopes of fixing the economic issues. The continuing issue with the European Union’s economic plans is finding the money to keep funding countries with low economic growth. Furthermore, the union also has to figure out how to deal with the issues that are outside of the European Union’s borders. In

Part of the exceptional nature of the EU stems from the notion that nothing like it has ever been attempted successfully before. The European Union is an international institution with a single market and shared currency. It strives to maintain singular goals and make its way towards being an “ever closer union”. Today, the European Union has expanded to include twenty-eight member countries with an influence that reaches every continent. This institution has had an impressive history, but it has reached a point of concern. The golden years which held high hopes of a united supranational Union are long over. The EU faces destructive problems today, which could ultimately end their impressive era of cooperation. The Union has come

The European Economic Community was an organization started in 1957 by France, West Germany, the Netherlands, Belgium, Italy, and Luxembourg, in post War World II torn European. This organization was a union between the Steal and Coal Community and The European Atomic Energy Community. The goal of the organization, heavily influenced by John Monnet one of its founders and National Liberation Committee member at the time, was to build a stronger cohesive Europe through collaboration and economic ties to bring mutual prosperity. This organization and its ideals developed into the well know European Union of today, that currently sits with 28 members. However, one controversial possible membership has increased in importance over the years.

Europe was a politically and fragile continent after the Second World War that claimed millions of lives. It is in that background, that the first steps to European integration were taken with the establishment of the European Coal and Steel Community (ECSC). The celebrated Schuman Plan, laid the foundation for the first real supra-national economy in the world, that is, the ECSC. The European integration continued through the decades with the establishment of the European Economic Community (ECC) and the European Union (EU). In the recent period, the EU has come under intense questioning with the economic crisis in Europe starting 2007. The recent Brexit vote has put further questions on the future of the EU. This essay considers the process of European integration through the decades and also discusses the advantages and disadvantages of the union.

The growing power of a united Europe gives rise to controversy in today 's European-American relations. First of all, Western experts say that the United States and the European Union have serious economic contradictions: the euro distracts substantial financial flows from the US market, complicates US budget deficit, it becomes a powerful competitor to the dollar in international payments, weakens America in its efforts to impose fixed prices for oil and other raw materials. The current area of the single European currency - the most extensive in the

There is an erroneous assumption in the world that the concept of the European Union, the notion of having a shared currency, and borderless pan-European continent is a relatively new idea. However, the idea of a pan-European identity as it is known today through the European Union was established after the end of the Second World War, as the need for a united Western Europe was needed to combat the possible threat of war with the Soviet Union. The policies of the European Union went through a long review through the establishment of multiple pan-European organizations, primarily the European Coal and Steel Community (ECSC) and the European Economic Community (EEC), which provided the backbone of the modern European Union, through a number of treaties that encouraged European cooperation. It is through the combined efforts of the ECSC and the ECC that Churchill’s dream of a united Europe in 1949 eventually culminated in the creation of the European Union (E.U), an organization whose role is to protect the economic interests of aligned nations as outlined by the mandates of the ECSC and ECC.

The European Union fails in very important and fundamental ways at being an effective and enabling political system. Even though it managed to enable trade and movement of people across its internal borders, as well as, set up a monetary policy, it has not been able to establish itself as the

As the most principle stance in EU monetary architectures, the EMU has experienced an incredible institutional transformation under the tremendous pressures not matter from the EU or national levels. In Dyson’s (2000) observation, the EMU’s actual effects on European states began from 1 January 1999. However, the process for putting its conditions in place can be traced to the European Monetary System (EMS) in 1979, since when the specific

“The problem is that the European capitalists are attempting to move towards union at a time when the general economic conditions are pointing in the opposite direction. If they could obtain a rate of growth of 5 or 6 percent, as they did during the period of upswing, then they could bring about monetary union without too much trouble. But with growth rates of 3-2 percent or less this impossible. All this means that a Federal European

An economic downturn followed in the 1990s, and the Maastricht Treaty was seen as the response, to create a single market, monetary union and a common foreign and security policy . This was meant to create a ‘spill-over’ into other, weaker areas of the economy, helping all who were a part of it . The European Monetary Union (EMU) (1999) was a direct result of the Maastricht Treaty, leading the way for the Euro in 1999 . It was widely believed a common currency and shared markets would create a stronger place in the global economy, one that could potentially rival that of the United States . The proposed Eurozone demanded several criteria to be fulfilled by its potential member states before it could be created in 1998. This included: annual fiscal deficits no greater than 3% of GDP, accumulated government debt no greater than 60% of GDP, inflation no more than 1.5% higher than the average rate of the three least inflationary European members, and long-term interest rates no more than 2% higher than these same three . However, by 1997, only Luxembourg and Finland met the criteria . By May 1998, 11 countries joined, three met the criteria but declined to join, and only Greece was ineligible . The EMU was organized to accommodate diversity in financial and economic policy-making, however merging both financial and economic policies was

After the 2008 crisis caused by the collapse of the American investment bank, the Lehman Brothers, the Europe Union faced difficult decisions to both recover the economy in the short term and in improving the economy for the long. ‘With their immediate response to the Banks in Europe giving them €4.5 trillion, the European Union then had to respond to the debt crisis that occurred as they realised a debt fuel economy was not stable. They then came together to form an Economic union where by a fiscal treaty was created, the idea behind the treaty was to limit yearly deficits to 0.5% of a country’s GDP’[1], this is the idea of a Budgetary policy, aiming there deficit, equilibrium or surplus to reduce debt. The policy was to follow the principles, ‘it should be timely; this is to allow for quick support of economic activity during low demand, temporary; to avoid a permanent deterioration in budget positions, the spending when borrowing low should be mix with both revenue and expenditure ideas; there can be impacts on demand in the short term affecting consumption allowing for growth, it should be directed within the stability and growth pact; it provides a common framework and allows for better measures to be take of the cyclical conditions while strengthening long term fiscal discipline, and should be accompanied with structural reforms that support demand.’{2]

The debt crisis, explained above, in several member states of the euro area has contributed in raising doubts about the viability of European Economic and Monetary Union(EMU) and the future of the euro.

For the last decade the European Union has struggle to hold itself together against multiple crisis and national rivalries of its member nations. The European Union (EU) has time and time again overcome these union breaking threats. However, since the American recession of 2008, the EU faces its greatest challenge of its short existence: the Eurozone crisis. The Euro, the monetary unit of the EU, is falling due to the fiscal policies of the so called PIIGS nations: Portugal, Ireland, Italy, Greece, and Spain. Even with the support of the heavyweights of the European Union (France and Germany) the nations of PIIGS is suffering heavily from economic depression; this economic depression is causing fractures between the nations that make up the European Union. Situationally, the issue has almost past the limit of no return and causing nations like Italy and Greece thinking about withdrawing from the European Union. If any of the PIIGS nations actually withdraw from the European Union, it would be the first step to the dissolvent of the European Union. The repercussion of a dead EU would be disastrous for the entire continent; one has to remember that the European Union was created to prevent a Third World War from ever erupting. Most Americans would not care what happens to the nations of Europe in this day and age however, the nations of Europe are among America’s greatest allies politically, economically, and militarily. If the EU fails and the continent erupts into war once

On 9 July 2013, Latvia achieved the required conditions to adopt the euro. Its exemption from participating within the single currency was abrogated with effect from 1 January 2014 (European Commission, 2014). By joining the currency which is used on a daily basis by over 330 million Europeans, it has been suggested that economies will be strengthened, their belonging to the community of European states as well as national identity (Eurozone Portal, 2014). This essay will firstly provide an overview on the history of the European Union (EU) and euro, here after a discussion of the euro crisis and advantages and disadvantages to country’s adoption of the euro for its business and competition. Lastly, it will conclude with an evaluation of the decision to join the single market currency.

The European Union (EU) was established in order to prevent the horrors of modern warfare, experienced by most of Europe during the World Wars of the 20th century, from ever ensuing again, by aiming to create an environment of trust with the countries of Europe cooperating in areas such as commerce, research and trade (Adams, 2001). The EU has evolved into an economic, trade, political and monetary alliance between twenty-eight European Member States. While not all Member States are in monetary union (i.e. share the currency of the euro), those that are form the ‘Euro-zone’ (Dinan, 2006). The EU can pass a number of types of legislation, with a regulation, act, or law, being the most powerful. Its ‘tricameral’ (European Union, 2007)