"Between national sovereignty and international power: What external voice for the Euro?"

McNamara, Kathleen R. and Meunier, Sophie. (2001) "Between national sovereignty and international power: What external voice for the Euro?". In: UNSPECIFIED, Madison, Wisconsin. (Unpublished)

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Abstract

[T]his paper evaluates the potential paths facing the EU as it projects the face of a single currency abroad. First, we analyze the need for a single voice representing the single European currency internationally. We highlight the different circumstances in which a currency needs a political voice in international affairs, and we disentangle what is specific to the financial sector from what is shared with other policy areas in which an external voice is needed, such as trade and common security policy. Second, we focus on the historical and political context in which the EU member states are operating when deciding on institutional design. We analyze the incomplete foundation provided by the Maastricht Treaty and the tentative efforts by the members of the Euro zone to devise institutions for presenting a united front to the rest of the world. Third, we explore which of the various options for designing a single voice for the single currency is most likely to promote the most politically acceptable balance between national sovereignty and international power. In conclusion, we suggest some implications of creating the Euro's external voice for the relative power of Europe vis-à-vis the United States, for the scheduled enlargement of the EU to the east, and for the current debate about the democratic accountability of supranational institutions.

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