Economic and Monetary Union in Europe Assignment

Economic and Monetary Union in Europe - Assignment ExampleWhen the thought of European Union was initially proposed, people thought it as a simple regional cooperation to exploit the possibilities of globalization. The concept of Economic and Monitory Union (EMU) in Europe was discussed earlier, but it failed to materialize because of various reasons. The immediate proneness that led to the relaunch of EMU in the late 1980s was in the prospect of the completion of the Single market. On December 10, 1991, at the Maastricht summit, the member states of the European Communities adopted the treaty on European Union. It damages and extends the 1957 treaty of Rome which established the European Economic Community. This paper analyses the economic and monitory unions in Europe. The economic and monitory union (EMU) in Europe was established in 1999. The EMU has two components an transpose footstep union, and complete convertibility. Moreover, there are a number of alternative sets of monetary arrangements that are in theory consistent with monetary union such as currency union, exchange rate union, absolve inter-circulation union, parallel currency union etc. The necessities of a single currency in the integration solve forced EU to think in terms of a single currency under the chasteness of EU rather than the individual member countries. EU is responsible for determining the exchange rates, interest rate and other monitory polices. Individual countries do not have the authority to print more currencies or Euros than prescribed by the EU.