Is the European Monetary Union a disaster? ? Discuss

In this essay, the author

• Evaluates the development of the emu, a system that only came into effect three years ago.
• Analyzes how the essay illustrates why the emu did not reach their targeted goals immediately and points out shortcomings in the maastricht treaty that should be reformed.
• Explains that a european monetary union has been part of the european union's aims for over thirty years. the emu was put into full effect in 2002.

• Evaluates the development of the emu, a system that only came into effect three years ago.
• Analyzes how the essay illustrates why the emu did not reach their targeted goals immediately and points out shortcomings in the maastricht treaty that should be reformed.
• Explains that a european monetary union has been part of the european union's aims for over thirty years. the emu was put into full effect in 2002.
• Explains that the oxford dictionary defines the term ‘disaster’ as a ‘complete failure’. they outline the intentions for the introduction of the euro and the advantages economist and member states had hoped to gain from it.
• Explains that the treaties of rome, which established the european economic community in 1957, were the cornerstones for the coherent currency.
• Opines that the benefits of a single currency include no distortion in production and investments through exchange rate fluctuations.
• Argues that the emu will cause the eu's greatest setback in history. the monetary union does not emerge simultaneously with a political union.
• Opines that a strong euro would cheapen the eu's imports, whereas weaker currencies would lower prices of european exports and make european goods more competitive.
• Explains that the ecb defines price stability as a year-on-year increase in the harmonised index of consumer prices for the euro area.
• Explains that the euro-area's economic growth performance has been unsatisfactory, with growth rates ranging from 3% in italy and germany to 10% in ireland.
• Analyzes how the euro declined steadily since 1995, but in 2002, the rate began to increase again. the exchange rate course of 2003 has recovered some of euro's former depresiion but still has its flaws.
• Explains that the sgp highlighted the politicised nature of the emu, as both france and germany saw it as an opportunity to demonstrate their hegemony.
• Analyzes whether the maastricht treaty is aim and function adequate.
• Argues that the european central bank, as a new institution created by the maastricht treaty, takes the coordinating role of this economic and monetary union.
• Explains that the ecb governing council has repeatedly had to contend with the accusation of a lack of transparency. the two-pillar strategy makes heavy demands on the euro system's communication policy.
• Explains that the ecb council follows a two-pillar strategy and judges inflation expectations over the medium term.
• Opines that the introduction of the euro has had far-reaching implications for the financial markets. however, a complete integration of financial systems is still hindered by regulatory, tax and legal obstacles.
• Explains how the 2002 cash changeover worked without a hitch, with banks supplied with notes and coins in advance, and banks in return supplied the retailers with new cash.
• Explains that the hicp does not cover a broad basket of goods. the changeover had given rise to fears of inflation.
• Opines that the outlook for emu in the medium term depends first and foremost on the enlargement process and the union's ability to cope with it.
• Analyzes how hankel argues that the test case poland shows how the monetary union without balance mechanisms as exchange rates and transfer services in an disintegrated, through national tariff systems as culture and language borders, compartmentalised, and labour market works.
• Opines that the emu has enhanced in terms of political and foreign policy, as the euro-area countries are forced to communicate even in an economic basis.
• Argues that the emu is not without problems, but it isn't a disaster in the sense of failure. its success is yet to be determined.
• Explains pearsall, j., the concise oxford dictionary, oxford university press.
• Opines that the euro-illusion, ist europa noch zu retten? rowohlt taschenbuch verlag, hamburg.
• Explains the european economic- and währungsunion between anspruch and wirklichkeit, peter lang, frankfurt.