Link to the University of Pittsburgh
Link to the University Library SystemContact us link
AEI Banner

European Economic and Monetary Union: Transitional Issues and Third-Stage Dilemmas. European Policy Papers #4

Cameron, David (1997) European Economic and Monetary Union: Transitional Issues and Third-Stage Dilemmas. European Policy Papers #4. [Policy Paper]

[img]
Preview
PDF
Download (130Kb) | Preview

    Abstract

    This paper considers two kinds of issues facing EMU. One concerns qualifications and membership: how qualifications are evaluated and which member states are likely to meet the criteria set for membership in the third stage of EMU in 1999. The other concerns the capacity of member states, individually and collectively, to deal with economic policy after the advent of the third stage. In particular, will they be able to address the long-term problems of low growth and high unemployment that afflict so much of Europe? In regard to the first issue, the paper suggests, for supporters of EMU, some reason for optimism. It is very likely that the third stage of EMU will begin on the first day of 1999 and also that the "euro-zone" that comes into being on that day will, in all likelihood, include a large number of member states - almost certainly as many as 8 and probably as many as 10 or 11. On the second issue - the capacity of EMU to address the long-term problems of low growth and high unemployment - the paper suggests some reason for concern and pessimism. Most of the member states participating in the third stage of EMU are likely to continue experiencing low growth and high unemployment. Neither monetary policy nor exchange rate policy is likely to be applied so as to generate any significant increase in the long-term rate of economic growth or any decrease in the high levels of unemployment that now exist in most of the likely "euro-zone" members. Moreover, the Treaty creates no institutional capacity for collective action in economic policy that might enable the member states participating in EMU to redress those problems, and there seems to be little desire in the EU as a whole to create that institutional capacity.

    Export/Citation:EndNote | BibTeX | Dublin Core | ASCII (Chicago style) | HTML Citation | OpenURL
    Social Networking:
    Item Type: Policy Paper
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > economic and financial affairs > economic policy
    EU policies and themes > Policies & related activities > employment/labour market > employment/unemployment
    EU policies and themes > Policies & related activities > economic and financial affairs > EMU/EMS/euro
    Subjects for EU documents: UNSPECIFIED
    EU Series: UNSPECIFIED
    ["eprint_fieldname_eusries" not defined]: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > University of Pittsburgh, University Center for International Studies, European Union Center > European Policy Paper Series
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 21 Feb 2003
    Page Range: p. 22
    Last Modified: 15 Feb 2011 17:14
    URI: http://aei.pitt.edu/id/eprint/32

    Actions (login required)

    View Item

    Document Downloads