10 Years of the Euro: Achievements, Challenges & Lessons for Asia. EU Centre, Singapore Policy Brief Number 1, March 2009

Regling, Klaus and Felke, Reinhard and Zogala, Marcin and Stanoeva, Guergana. (2009) 10 Years of the Euro: Achievements, Challenges & Lessons for Asia. EU Centre, Singapore Policy Brief Number 1, March 2009. [Policy Paper]

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Abstract

The creation of the Economic and Monetary Union and the euro ten years ago was a leap forward in the process of European integration. This brief looks at the achievements of the first decade of the euro and the challenges as we go ahead. It finds that the euro and the EMU have generally been a success. At the same time, the successes of the past decade were helped by relatively benign conditions in the world economy which have abruptly ended with the onset of the international financial crisis. The crisis is the first major test and a significant challenge for the euro-area. It has exposed existing imbalances within the euro-area that were mitigated by the favourable economic developments and raised the stake for economic coordination. In spite of looming challenges, the EMU offers important protection for its members and can mitigate the effects of the crisis. The experience of the past decade with the euro offers lessons for the ongoing economic integration in Asia. Any lessons, however, should take into account the existing differences between the two models of regional integration.

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