If we look at Europe in the view of the years from the Second World War, it is hard to believe that such changes occurred during this time. Euro-single currency is a product of the yet unfinished integration process. How was the European Monetary Union created and why is there over 316 million people currently using euro as their currency? What is the role of EMU as a political instrument? And finally, does this instrument make a difference to business in Europe? The way to achieve euro was long, full of controversy and was a hard economic adjustment. We can actually say: three times a charm…
The first try to achieve full economic and monetary union by 1980 was the Werner plan but it failed. The second attempt to reach it was the launching of the European Monetary System in 1979. Finally, in December 1991 the European Council approved the Maastricht Treaty that established a three stage timetable to achieve EMU. The first stage began in July 1990. It required the removal of all remaining barrier to capital flows, the partaking of all member states currencies in the Exchange Rate Mechanism (ERM), synchronization of the policy and convergence of economic performance. Stage two began in January four years later. It included inception of the European Monetary Institute that was transitional institution that was preparing EU for stage three that begun in January 1999 when European System of Central Banks ESCB, become responsible for monetary and exchange policy. In March 2002, the complete monetary union was established between 12 of the 15 EU member states. Euro replaced separate national currencies and became official currency of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovenia and Spain. Great Britain, Sweden and Denmark remained outside the Euro zone... [continues]
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(2008, 08). To What Extent Do You Agree with the View That European Monetary Union Is a Political Instrument That Makes Little Difference to European Business?. StudyMode.com. Retrieved 08, 2008, from http://www.studymode.com/essays/Extent-Do-You-Agreeview-European-Monetary-158395.html
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