The Monetary Union and the policitcal unification in Europe
https://doi.org/10.21845/comp/2002/1/7
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Copyright (c) 2002 László Jankovics
This work is licensed under a Creative Commons Attribution 4.0 International License.
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Abstract
The article deals with the European Economic and Monetary Union's connection with politics. The author examines how the Monetary Union came to be with the help of the traditional integration theories and also what answers can be gained from them on the question of politically unification. He shows how the Werner-plan, mentioned as the forerunner of the EMU, helped in forming the Union in the light of the theory of optimal currency areas. He points at the problem around European fiscal federalism. In order to elevate the mostly underrated economic powers, he uses the Mundell-Fleming model to illustrate the economic relations behind the Union, which, to some extent, stand in contrast with the way of behaviour driving back to political thinking.