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1
Feldmeier, Gerhard. "German foreign trade surpluses – a problem for the European Monetary Union?" International Journal Of Innovation And Economic Development 1, no. 1 (2015): 7–17. http://dx.doi.org/10.18775/ijied.1849-7551-7020.2015.11.2001.
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In the light of the controversial discussion on the cause and effects to the total economy of the high export surplus of one country and their consequences for other countries, the concrete question as to whether high German balance on current account surplus mentioned is indeed responsible, as alleged, for macroeconomic divergence in the European Union or for balance on current account deficits in other European countries will is addressed in this paper. We examine how and to what extent German export success represents a lasting threat to the stability of the Eurozone and impedes economic recovery in instable countries in the south, or whether it can even offer those countries better chances to overcome crisis and stabilise their economy. The study suggests that politically enforced shrinkage of German exports accompanied by a weakening of the German economy scarcely benefits deficit countries. Due to the very close intertwining of German industrial intermediate inputs import trade with European crisis partner countries, with their great demand for German investment goods exports, a decrease in German exports would not only cause a drop in their exports, but it would also whittle down the basis for public European financial help for handling crisis, help for which Germany provides a large proportion of the liability.
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Foden, David. "Trade union proposals towards EMU." Transfer: European Review of Labour and Research 4, no. 1 (February 1998): 88–112. http://dx.doi.org/10.1177/102425899800400110.
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This article provides an overview of the debate within the trade union movement on Europe's forthcoming economic and monetary union. It reviews the reasoning behind the ETUC's critical support for EMU and outlines the main issues in the trade union debate in ten European countries. It finds that the general political debate at national level has a significant influence on the discussion within the trade unions, and that the sector of the economy within which individual unions organise is also of relevance. Nevertheless, these specific concerns are placed within the framework of policy defined by the ETUC.
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Lane, Philip R. "The Real Effects of European Monetary Union." Journal of Economic Perspectives 20, no. 4 (August 1, 2006): 47–66. http://dx.doi.org/10.1257/jep.20.4.47.
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We explore the impact of European monetary union on the economies of the member countries. Inflation differentials across the euro area have been persistent, such that cumulative real exchange rate movements across the euro area have been quite substantial. The adoption of the euro has indeed contributed to greater economic integration; however, economic linkages with the rest of the world have also been growing strongly, such that the relative importance of trade within the European monetary union has not dramatically increased. In terms of future risks, a severe economic downturn or financial crisis in a member country will be the proving ground for the future political viability of the euro.
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Deng, Haoran, Tzuhan Lin, Zihao Ma, and Yixi Wang. "The impact of European Monetary Union on different countries within the EU." Highlights in Business, Economics and Management 2 (November 6, 2022): 255–62. http://dx.doi.org/10.54097/hbem.v2i.2371.
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The decision on the establishment of economic and Monetary Union will be regarded as a major event in the economic history of Europe. A stable European monetary structure will affect the future not only of the Member States of the Community, but also of the whole world. It is likely to serve as a guidepost for the economic policies of future members of the European Community, such as Austria, Sweden and Finland, as well as the emerging market economies of Central and Eastern Europe. These countries are looking forward to closer links with the European Community. Monetary union would also provide a currency for the European Community. The creation of economic and monetary union is a complex undertaking from both a technical and a political point of view. It requires a high degree of consistency between economic policy and performance. At the same time, it would greatly reduce the economic autonomy of participating countries. The traditional differences in the economic and monetary policies of the member states of the European Community also have different effects. Therefore, this paper mainly studies the influence of EMU on different EU countries by studying the EU's political ideology, historical and economic development, economic main body structure and cultures of different EU countries.
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Târlea, Silvana, Stefanie Bailer, Hanno Degner, Lisa M. Dellmuth, Dirk Leuffen, Magnus Lundgren, Jonas Tallberg, and Fabio Wasserfallen. "Explaining governmental preferences on Economic and Monetary Union Reform." European Union Politics 20, no. 1 (January 8, 2019): 24–44. http://dx.doi.org/10.1177/1465116518814336.
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This article examines the extent to which economic or political factors shaped government preferences in the reform of the Economic Monetary Union. A multilevel analysis of European Union member governments’ preferences on 40 EMU reform issues negotiated between 2010 and 2015 suggests that countries’ financial sector exposure has significant explanatory power. Seeking to minimize the risk of costly bailouts, countries with highly exposed financial sectors were more likely to support solutions involving high degrees of European integration. In contrast, political factors had no systematic impact. These findings help to enhance our understanding of preference formation in the European Union and the viability of future EMU reform.
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Rehman, Scheherazade. "The Future of the European Union." Global Economy Journal 15, no. 2 (July 2015): 213–30. http://dx.doi.org/10.1515/gej-2015-0028.
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The European Union (EU) currently comprised of 28 countries is heralded as the single most ambitious voluntary supra-national economic, trade and monetary arrangement in recent modern history. The initial impetus of this arrangement began in 1951 with The Coal and Steel Union amongst Germany, France, Belgium, Luxemburg, Netherlands, and Italy and it continues to evolve today. The most ambitious part of this arrangement is the economic and monetary union (EMU) of 19 EU members countries called the Eurozone. This grand experiment has recently faced its biggest stress test with a double dip recession – the 2008 global financial crisis and the 2010+ European sovereign debt crisis. While many experts focused on the lack of fiscal union to resolve the Eurozone’s current problems, the issues are more complex. Systemic risk in Eurozone originates in part from three principal areas: political issues, lack of a fiscal discipline enforcement mechanism, and market failure.
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Milačić, Srećko, Zoran Simonović, and Aleksandar Kostić. "European Monetary Union as a stabilizing factor in the circumstances of economic crisis." Ekonomika 66, no. 4 (2020): 13–28. http://dx.doi.org/10.5937/ekonomika2004013m.
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The authors examine the problems the European Monetary Union in the circumstances of the global economic crisis. They especially elaborated the battle for the financial stability of the European Monetary Union. The authors problematize the interaction of the European Central Bank and national central banks, emphasizing the deficiencies in the coordination of fiscal and monetary policy. They investigated the reasons that require a cautious strategy when it comes to the admission of new member states into the European Monetary Union and in that sense the conditions for nominal and real convergence. The authors consider the management of the economic crisis and the introduction of new institutions with the task to stabilize the situation in the monetary field. They explored the problems of helping countries like Greece from the point of view of the developed countries relationship. The authors especially paid attention to the level of transparency in relation to their citizens when making decisions on certain aid giving issues. They have proposed solutions for getting out of the vicious circle and the need to redesign the European Monetary Union and in this context the problem of the stabilization of the euro in order for it to be competitive with the dollar.
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Arestis, Philip, and Peter Phelps. "Inequality implications of European economic and monetary union membership: A reassessment." Environment and Planning A: Economy and Space 50, no. 7 (July 30, 2018): 1443–72. http://dx.doi.org/10.1177/0308518x18781082.
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A growing number of studies have concluded that the European economic and monetary union has exacerbated inequalities in income, wealth and society. Furthermore, the endogeneity of income inequality is now becoming recognised as an important part of the cost–benefit analysis of euro currency adoption. Yet the nature, significance and scale of different monetary (and market) integration channels in operation remain uncertain. In this contribution, we employ static and dynamic panel data methodologies to investigate the intra-national household inequality implications, both realised and expected over coming years. Our analysis reveals that the within-country inequality outcomes differ significantly for core and non-core country-groups in the European economic and monetary union, which have so far realised very different distributional costs and benefits from the integration process. These are crucial issues for policy-makers, not just for the European economic and monetary union member states, but for other countries as well, especially the European Union countries that are expected to adopt the euro currency in the future. This is so in terms of their attempts to look for, design and implement policies, which alleviate rather than exacerbate within-country inequality.
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Bąk, Henryk, and Sebastian Maciejewski. "Endogeneity and Specialization in the European Monetary Union." International Journal of Management and Economics 46, no. 1 (June 1, 2015): 7–40. http://dx.doi.org/10.1515/ijme-2015-0020.
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Abstract There has been a broad discussion about the viability of the European Monetary Union (EMU) in its present and prospective confines. Generally, the EMU, consisting of 19 countries, is not considered an optimal currency area due to low labor market flexibility, autonomous fiscal policies, and structural differences among its members. Considerations about the endogeneity effect of currency unions lead to the question whether the EMU will become more viable over time. According to the endogenity hypothesis formulated by Frankel and Rose [1996, 2000], a common currency area may gradually become an optimal currency area at some future point (ex post unification), despite not having been an optimal currency area (OCA) prior to (ex ante) currency unification. Currency unification should bring about increased intra-industry trade and greater business cycle synchronization among member states. The most recent literature and analyses presented in this paper suggest that the endogenity effect in the EMU has been frail since its onset. While real convergence between EMU member states has not advanced, divergence in i.a. economic structures, national income and productivity levels is observed. The most important economic mechanisms reinforcing convergence and divergence among monetary union members are presented in this paper. Using recent data and related research results, we show a significant divergence in economic structures, business cycle synchronization and productivity levels among Eurozone members in the last decade. The Krugman sectorial dissimilarity index is applied to measure changes in industrial similarity among member countries and the Hodrick-Prescott filter to estimate business cycle synchronization in the EMU. These divergence tendencies have been strengthened by the global financial crisis of 2008 and persist, calling for reforms and new policies within the EMU.
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Matei, Elena Florentina, and Ioana Manuela Mindrican. "The Evolution of Nominal Convergence After Accession to The European Union. The Case of Romania." European Journal of Sustainable Development 11, no. 3 (October 1, 2022): 149. http://dx.doi.org/10.14207/ejsd.2022.v11n3p149.
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Economic and Monetary Union is the result of progressive economic integration that includes collective regulation for the free movement of goods, services, labor, capital, and products. Economic and Monetary Union presupposes a common currency and market, but also a monetary policy coordinated by the European Central Bank, which has the role of ensuring economic stability. In this context, the countries wishing to join must be prepared to deal with possible economic imbalances, this being possible through the existence of a high level of economic development. Through this paper, we want to identify the evolution of the nominal convergence criteria established by the provisions of the Maastricht Treaty to identify the level of readiness of the Romanian economy for integration into the Economic and Monetary Union.
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OVCHINNIKOVA, VALERIYA. "FRANCO-GERMAN COOPERATION AT THE EARLY STAGES OF EUROPEAN MONETARY INTEGRATION." History and Modern Perspectives 3, no. 4 (December 30, 2021): 58–65. http://dx.doi.org/10.33693/2658-4654-2021-3-4-58-65.
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The article examines the prerequisites for european monetary integration after the World War II, as well as the stages of the formation of the EU Economic and Monetary Union. The aim of the study is to identify the internal and external factors of european monetary integration, as well as the role of Franco-German cooperation in this process. As a result of the study, the author comes to the conclusion that the european monetary integration was facilitated by both external factors: the influence of the United States in the post-war recovery of destroyed european economy and financial system, as well as the collapse of the Bretton Woods system of fixed exchange rates; and internal: the successful economic integration of countries and the further desire to remove all barriers, including financial ones, to internal trade. Franco-German cooperation played a significant role in european monetary integration. The positions of the countries on the basic principles of the functioning of the euro zone differed: France defended the flexibility of the monetary union, and Germany, fearing to lose control over the stability of the economy, advocated the harmonization of the economic policies of states. Nevertheless, the countries were able to form a common position and to end the formation of the Economic and Monetary Union on time, introducing the euro.
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Pietryka, Ilona. "The process of nominal and real convergence under the conditions of monetary integration." Equilibrium 3, no. 2 (December 31, 2009): 51–66. http://dx.doi.org/10.12775/equil.2009.020.
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The creation of the Economic and Monetary Union is the next stage of monetary integration. Due to differentiation between Member States of the European Union, expenses and profits of participation in Eurosystem are not spread similarly. The first part of this paper reviews the fulfillment of nominal Maastricht criteria (stability of public finances, prices, exchange rate and interest rates). The second part presents the state of real convergence between countries either belonging to or aspiring to European Economic and Monetary Union (flexibility of prices and salaries, mobility of means of production, integration of financial markets, openness of economy, diversification of production and consumption and similarity of economic disorders). Analyses are based on available statistical data and scientific research.
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Hudec, Martin. "The Development of International Economic and Monetary Cooperation in Europe." Studia Commercialia Bratislavensia 11, no. 39 (June 1, 2018): 28–41. http://dx.doi.org/10.2478/stcb-2018-0003.
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Abstract Since the end of the World War II, Europe has gone a long way on the path of a new era of socio-economic integration, continually battling and overcoming the political and economic fragmentation of earlier eras and less developed economies. The various difficulties and interruptions of the process involved, the European integration, since the 1952 European Coal and Steel Community, ranged from an initial small group to a large community comprising most European countries, the gradual removal of market barriers leading to the introduction of a customs union to the single market. Furthermore, the creation of Economic and Monetary Union and the adoption of the common currency have become the culmination of the whole process of economic integration, since the euro is used daily by 338.6 million Europeans in 19 EU member states. The aim of our research article is to closely analyze the development of the economic and monetary integration of Europe, since we believe that the single currency project represents a great success for the European Union as the result of long-term efforts on currency and economy stability, progress and economic growth.
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Krajišnik, Milenko, and Aleksandra Žutić. "Impact of the Enlargement of the European Union on the Foreign Trade and Development of the New Members." ECONOMICS 5, no. 1 (June 1, 2017): 36–51. http://dx.doi.org/10.1515/eoik-2017-0010.
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SummaryOne of the most important characteristics of the process of globalization is the creation of different regional economic integrations. The most developed regional economic integration in the world is the European Union. Since it was found, when six founder countries created the free trade area for coal and steel, European Union passed all the phases of development of the economic integration, through the customs union and common market to the economic and monetary union. Through the six waves of enlargement European Union has become the integration of 28 countries with over 500 million habitants. Every enlargement of this regional integration had an impact on the economic position and the development of both the old and the new members. The biggest increase in the number of members brought the 5th big enlargement of the European Union, when the number of the member countries increased in total for 12 countries, first for 10, and then for 2 more.The effects of this enlargement on former soviet countries are specially interesting not only because of the number of the new members, but also because of the fact that these countries during the joining have also pass the process of the transition to the market economy.The aim of this work is to examine the effects of the enlargement on the foreign trade of the new members, and the effects of the changes in foreign trade on the economic development of these countries. The analysis of the effects of joining the European Union could be interesting for the countries which strive to become members of this economic regional integration.
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Merdić, Alem, and Hasan Mahmutović. "SOME THEORETICAL ASPECTS OF ECONOMIC INTEGRATION." Journal Human Research in Rehabilitation 7, no. 2 (September 2017): 97–105. http://dx.doi.org/10.21554/hrr.091711.
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One of the basic links of the process of globalization are economic integrations. The aim of this paper is to systematize theoretical achievements and to review the forms, effects and conditions for connecting countries motivated by economic benefits. In addition to the theoretical review of the conceptual definition of economic integration, the focus is on the levels of economic integration from the free-trade zone to the monetary and fiscal union, explaining the specificity of each of the mentioned levels. Considering that the connection between countries always raises the question of the benefits and costs of connection, the special emphasis in this paper is placed on the potential effects for free trade. Finally, the greatest contribution of this paper is the systematization and theoretical review of the theory of optimal currency area and monetary integration, which is especially significant for the European soil, taking into account the already established European Monetary Union.
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Jacobi, Otto. "Transnational trade union cooperation at global and European level - opportunities and obstacles." Transfer: European Review of Labour and Research 6, no. 1 (February 2000): 12–28. http://dx.doi.org/10.1177/102425890000600104.
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As globalisation of the economy proceeds apace, it is essential for trade unions to co-operate on a transnational basis if global capitalism is to be civilised. This contribution argues that problems with global trade union co-operation stem from the fact that people's social interests differ greatly according to the different stages of economic development reached in the First World, the newly industrialised countries, the transition economies and the countries of the Third World. It suggests that global co-operation amongst trade unions can only be achieved by doing away with protectionism and dumping. In the interest of the economic development of other groups of countries, the highly developed states have to abolish sectoral subsidies and protectionist measures. In return, the trade unions in the First World can expect the basic social rights laid down in ILO conventions to be made universally binding. Only then will it be possible to break out of the damaging spiral of global dumping and ensure that living conditions for all concerned are able to keep pace with economic progress. In those countries of Europe which are members of the EU, the conditions for transnational trade union co-operation are entirely different. A unified economic and monetary area has already been created, and what is needed now is for a transnational social area to be developed as well. There is scope here for the trade unions to build on the social standards that have already been set on a EU-wide basis. Despite the enormous challenges resulting from the far-reaching social changes taking place, trade unions in Europe have a real opportunity to establish a social model that can serve as a benchmark for unions in other parts of the world.
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Troitiño, David Ramiro. "The Current Economic Crisis of the EU: Genesis, Analysis and Solutions." Baltic Journal of European Studies 3, no. 1 (June 1, 2013): 6–28. http://dx.doi.org/10.2478/bjes-2013-0002.
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AbstractThe article approaches the current economic crisis from an historical perspective, analyzing the building of the monetary integration and the common currency. The process is explained through pointing out its effects on the European integration and outlining the positive and negative consequences of the introduction of a common currency in the European Union. The investigation continues with a general outlook of the current situation of the countries which were more affected by the current crisis-Greece, Ireland, Portugal, Spain, Italy and Cyprus. What all these countries have in common is the necessity of extra funding in a context of austerity, plus some national particularities. The author proposes an expansion in the public spending as the only reliable way to stimulate European economies in the crisis. As the introduction of the euro meant the end of the monetary independence for the Member States, an innovative solution is proposed-the creation of an Economic Government in the union in order to transfer funds from wealthier states to the countries in trouble. It is presented as a necessity for the states in crisis, a necessity for the wealthier states, and a must for the European Union.
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Cruz, Elena Márquez de la, Ana R. Martínez-Cañete, and Inés Pérez-Soba Aguilar. "Intertemporal preference parameters for some European monetary union countries." Applied Economics 39, no. 8 (May 2007): 997–1011. http://dx.doi.org/10.1080/00036840500462012.
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Fendel, Ralf, and Michael Frenkel. "Putting European Monetary Integration into a Historical Perspective: Two Decades of the European Monetary System versus Two Decades of the European Monetary Union." Jahrbücher für Nationalökonomie und Statistik 239, no. 5-6 (September 25, 2019): 769–95. http://dx.doi.org/10.1515/jbnst-2018-0097.
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AbstractThis comparative study looks at broad economic developments during the 20 years of the European Monetary Union (EMU) and 20 years of the European Monetary System (EMS). We analyze the economic performance by looking at a set of macroeconomic variables. The analysis of macroeconomic performance includes two perspectives: one is internal, i. e. how did the countries perform relative to each other; the other is external, i. e. how did the group of member countries perform vis-à-vis other countries. Overall, the analysis of the two periods suggest that the EMU does not display a macroeconomic development inferior to the EMS period. On the contrary, some crucial macroeconomic indicators point to a greater stability during the EMU period compared to the EMS period.
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Tsibulina, A. N. "EСONOMIC AND MONETARY UNION: CORRECTION ОF FAILURES." MGIMO Review of International Relations, no. 4(31) (August 28, 2013): 113–18. http://dx.doi.org/10.24833/2071-8160-2013-4-31-113-118.
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The articles deals with the initial design failures of the European and Monetary Union which could have lead to the current sovereign debt crisis of some of its member-states. It touches upon issues such as the Theory of Optimum Currency Areas, economic imbalances and situation with the public finances within the EU. The EU makes efforts to implement new initiatives which could prevent the euro area from future crises while debates remain on the best possible options. These initiatives imply not only deepening of economic integration but also of a political one. Under these circumstances reaching a consensus in EU- 27 becomes quite a challenging process and different groupings of countries might appear and this can even more complicate decision-making and functioning of the EU. While the outcome of the reforms is still to be seen in the future, some macroeconomic indicators show that real adjustment process has started in the periphery countries due to urgent measures taken at the EU level. Nonetheless the latter ones have not yet generated what is necessary for a sustained way out of the crisis.
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Киевич, А. В., И. А. Пригодич, and И. А. Конончук. "ТРАНСФОРМАЦИЯ НАЛОГОВЫХ СИСТЕМ НА ПРИМЕРЕ СТРАН – ЧЛЕНОВ ЕВРОПЕЙСКОГО СОЮЗА." TIME DESCRIPTION OF ECONOMIC REFORMS, no. 4 (December 15, 2018): 30–37. http://dx.doi.org/10.32620/cher.2018.4.05.
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Formulation of the problem. The well-being and efficiency of the country's economy depends largely on the state of its tax system, which is greatly influenced by changeable economic conditions, the development of foreign trade, and active processes of integration and globalization. The modern tax system must meet the standards of the economy of the world and rely on the realities of economic development and the specifics of the country. The aim of the research is to analyze the transformations of the tax systems of the European Union within the framework of the consolidation of its domestic policy during the crisis period and to evaluate the effectiveness of the measures taken. The object of the research is tax systems of the European Union is an association of countries with different levels of economic development. Methods used of the research. The use of the induction method allowed us to designate directions for improving the tax system of the European Union as a single mechanism by consolidating changes in individual countries. This experience made it possible to identify countries that carried out similar activities, and to assess the effectiveness of the implementation of reforms. The hypothesis of the research .The functioning of the internal market of the European Union depends on the existence of a single tax on all transactions within it, which ensures the free circulation of goods and services and prevents discrimination. The statement of basic materials. Many European Union domestic policies are redistributive in nature (single monetary, monetary, agricultural, social and regional policies) and depend on a common fiscal policy. Originality and practical significance of the research is to justify that the basis of a monetary union should be a coordinated fiscal policy that requires many transformations. In fact, this means that the tax environment of the European Union is not fully harmonized, but is based on common principles. Conclusions of the research. The study of the practice of reforming the tax systems of the countries - members of the European Union during the crisis period makes it possible to assess the possibilities of transforming the elements of taxation and to determine the most favorable trends in this area.
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Leśniewski, Leszek. "Integracja gospodarcza Danii, Finlandii i Szwecji z Unią Europejską." Kwartalnik Kolegium Ekonomiczno-Społecznego. Studia i Prace, no. 1 (December 5, 2015): 227–47. http://dx.doi.org/10.33119/kkessip.2015.1.10.
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This paper explores economic integration of the Scandinavian states (Denmark, Finland and Sweden) with the European Union during the global crisis. The aim of this paper is to present comparative study of different choices made by these countries with regard to the European integration: EMU opt – out clause in Denmark, membership of Finland in the European Monetary Union and derogation for Sweden – and as result different reaction to the financial and economic crises
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Beju, Daniela-Georgeta, Maria-Lenuţa Ciupac-Ulici, and Codruța-Maria Fǎt. "Central Bank Independence and Inflation IN EU-28." Land Forces Academy Review 22, no. 4 (December 1, 2017): 253–62. http://dx.doi.org/10.1515/raft-2017-0034.
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Abstract Today, both policymakers and academicians consider that the central bank’s main goal is to guarantee price stability. The central bank can sustain the government’s economic policies, but only without prejudicing this objective. In order to focus on price stability several studies found that central bank should have a high level of independence. This is why during the recent decades the majority of developed countries, but also several emerging economies have employed institutional reforms that conferred their monetary authorities – the central bank – more independence. Within the European Union the central bank independence is a crucial issue, since the Maastricht Treaty stipulates that one requirement for joining Economic and Monetary Union for the candidate member states is to give their central banks a sufficiently high level of independence. This official requirement has encouraged the countries from Centre and East Europe engaged on the way to adhere the Economic and Monetary Union to confer their central bank a great level of independence. In this paper we analyze some important theoretic issues about central bank independence. We also make an empirical investigation regarding the evolution of inflation within European Union relative to the independence of member states’ central banks.
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Křupka, Jiří, Romana Provazníková, Jan Langer, and Miloslava Kašparová. "Standards of Living Indices Modelling in European Monetary Union Members Countries." International Journal of Economics and Statistics 10 (March 15, 2022): 174–81. http://dx.doi.org/10.46300/9103.2022.10.28.
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In the article a problem of modelling of standards of living is presented. The standards of living problem is described for real data set about 17 member states of European Monetary Union. It focuses on the quality of life and economic prosperity of the country. Models of Quality of life index, Prosperity index and Complete Standard of Living were proposed and analysed on the basis of cluster analysis algorithm TwoStep. Models were realised in SPSS Clementine.
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Tarabar, Danko. "Regional integration and entrepreneurship: evidence from European Union." Journal of Entrepreneurship and Public Policy 7, no. 2 (July 9, 2018): 117–34. http://dx.doi.org/10.1108/jepp-d-18-00003.
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Purpose The purpose of this paper is to empirically uncover the relationship between economic integration and levels of entrepreneurial activity across 24 EU countries between 2004 and 2012. The deepening of EU integration corresponds to increases in the size and competitiveness of domestic markets as member states reorient economic activity toward the larger, competitive single market. Spillovers of both economic and political dimensions of integration in the common market on micro firm and self-employment are considered. The paper contributes to the understanding of the hypothesized relationship between globalization and the rise of entrepreneurial economy. Design/methodology/approach The paper uses fixed effects linear regression models to estimate the marginal effects of economic integration on entrepreneurial activity. Several dependent variables and controls for social, economics, and institutional context are used to confirm the robustness of the results. Findings The paper finds that increased economic activity of member countries within the EU common market, as well as institutional compliance and integration in the European Monetary Union and Schengen Agreement are positively and significantly associated with the rise of entrepreneurship. Notably, it is found that a standard deviation increase in economic and political integration is associated with, respectively, 16 and 7.2 percent increase in micro firm density. Some preliminary evidence on the quality of the arising entrepreneurial activity are also given. Originality/value The paper takes stock of existing descriptive and theoretical literature on global economic integration and entrepreneurship to uncover, for the first time, the empirical relationship between entrepreneurship and levels of economic and political integration within the EU bloc.
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Lekarenko, Oksana G. "The Crisis of the Bretton Woods Monetary System and the Beginning of European Monetary Cooperation." Vestnik Tomskogo gosudarstvennogo universiteta, no. 466 (2021): 98–106. http://dx.doi.org/10.17223/15617793/466/12.
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The article aims to identify the impact of the crisis of the Bretton Woods monetary system on the beginning of European monetary cooperation. Russian scholars' publications on European monetary integration usually examine in detail the internal prerequisites for the emergence of the Werner Plan and only sketch the external environment. Drawing on available European and American sources, this research provides a more nuanced picture of the origins of European monetary cooperation in the context of a general collapse of the post-war international monetary order. The article begins with the characteristic of the main features of the Bretton Woods monetary system. In the late 1960s and early 1970s, the intrinsic contradictions of the Bretton Woods mechanism, such as the problem of liquidity, confidence in the key currencies, and the adjustment mechanism, generated numerous monetary crises. All efforts to reform the international monetary system stalled because of disagreements between countries with surplus and deficit payment balances. The research also focuses on the US monetary policy. As the US dollar was the main reserve currency, the stability of the entire monetary system depended on its position. Since the late 1960s, conflicts over monetary issues developed between the United States and Western European countries, culminating in the Nixon administration's unilateral decision to abolish the gold standard in August 1971. Monetary crises and the weakness of the dollar pushed the countries of the European Economic Community to develop their own currency grouping. The article analyses the Werner Plan of 1970 that proposed the creation of an Economic and Monetary Union (EMU) with a single European currency as the ultimate goal. Based on fixed exchange rates between European currencies, the EMU represented a regional replica of the Bretton Woods system. The single European currency was seen by Europeans as an alternative to the dollar and the unpredictable American policy. The author concludes that the end of transatlantic monetary cooperation gave an additional impetus to the development of European monetary integration. Although first European efforts to create the EMU had failed because of the different approaches of France and the Federal Republic of Germany as well as the economic crisis of the early 1970s, the Werner Plan marked a crucial phase in the history of European integration. The Werner Report became a blueprint for the European Monetary System (EMS) of the late 1970s. The success of the EMS paved the way for the creation of the European Monetary Union envisaged in the Maastricht Treaty of 1991 establishing the European Union and the adoption of a single European currency - the euro.
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Menguy, Séverine. "ADVANTAGES OF FOLLOWING A GOLDEN RULE IN A MONETARY UNION." Macroeconomic Dynamics 21, no. 2 (October 13, 2015): 279–310. http://dx.doi.org/10.1017/s1365100515000462.
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The European sovereign debt crisis has revived the debate about appropriate fiscal rules in the European Economic and Monetary Union. Whereas the Stability and Growth Pact and the Fiscal Compact make no distinction between public consumption and investment expenditure, the aim of the current paper is to analyze the implications of the adoption of the Golden rule in a monetary union, distinguishing between the two types of public expenditure. With the help of a macroeconomic model, we show that introducing a Golden rule and smoothing public investment expenditure would be welfare-improving, and mostly for countries where taxation rates and the productivity of public investment are highest, and for the most closed countries. It would also be the most beneficial for countries where the monetary transmission parameter, the propensity to consume, and the price elasticity of supply are weakest, whereas supply-side distortions are the strongest.
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GUILLAUMONT, PATRICK, and SYLVIANE GUILLAUMONT. "The Implications of European Monetary Union for African Countries." JCMS: Journal of Common Market Studies 28, no. 2 (December 1989): 139–53. http://dx.doi.org/10.1111/j.1468-5965.1989.tb00360.x.
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Zahid, Muhammad, Muhammad Ramzan, Muhammad Zia Ul Haq, Wonseok Lee, Jinsoo Hwang, and Jimin Shim. "The Significance of Monetary Policy Transmission Mechanism in the Sustainable Development of the SAARC Economic Community." Sustainability 13, no. 23 (November 28, 2021): 13171. http://dx.doi.org/10.3390/su132313171.
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The purpose of this study is to examine the monetary policy transmission mechanisms in seven South Asian Association for Regional Cooperation (SAARC) countries to discover the viability of the convergence of the SAARC into a monetary and economic union based on common monetary channels. By employing optimal currency area theory, we used the restricted VAR analysis on the annual data from 1978 to 2017. We find that the money channel response provides proof for the presence of an exchange rate and credit channels. Furthermore, the real sector also responds to changes in fiscal and monetary shocks through the exchange rate and credit channels over short-run to long-run time horizons. This implies that the SAARC is a good candidate due to common exchange rate and credit channels. The function of the variance decomposition and the impulse for forming a monetary and economic union is that they share a coincidental pattern of dynamic reactions of inflation and growth to exogenous shocks. If the SAARC monetary and economic union is created, it will reap overall economic benefits inside and outside of Asia just like the European Union (EU).
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Nowak-Far, Artur. "The European Union, its Economic and Monetary Union, and the (Apparent) Perception of Crisis Reflected in Immediate Regulatory Actions." Polish Review of International and European Law 9, no. 2 (November 14, 2020): 147–68. http://dx.doi.org/10.21697/priel.2020.9.2.06.
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While neither its institutional, nor legal arrangements fundamentally contributed to the emergence of the Eurozone crisis in the late 10’s of the 21st Century, the crisis exposed significant weaknesses of the EU economic governance, especially its inability to achieve a sustainable level of budgetary discipline. The crisis in particular highlighted the existing divisions of the EU Member States into different integration groups having divergent interests. Notably, it sharpened the division between the Eurozone states and non-Eurozone ones, as well as between the creditor-countries and debtor-countries. The EMU reform agenda adopted after 2008 gave more weighting to the interests of the former states. The emerging post-2008 economic governance-reform arrangements also gave more weight to the ECOFIN Council, at an expense of the European Commission. In the resulting institutional setting, the main aim of the EMU reform agenda was to assure the stability of the Eurozone and to reinforce its resistance to economic shocks. In this context, however, benefits arising from the reformed EMU are unevenly distributed, as they are more likely to avail the Eurozone countries than non- Eurozone countries, and more the creditor countries than the debtor ones.
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Ben, Arfa. "Analysis of shocks affecting Europe: EMU and some central and eastern acceding countries." Panoeconomicus 56, no. 1 (2009): 21–38. http://dx.doi.org/10.2298/pan0901021b.
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This paper deals with the synchronization of business cycles and economic shocks between the euro area and acceding countries. We therefore extract the business cycle component of output by using Hodrick-Prescott filter. Supply and demand shocks are recovered from estimated structural VAR models of output growth and inflation using long run restriction (Blanchard and Quah). We then check the (A) symmetry of these shocks by calculating the correlation between euro area shocks and those of the different acceding countries. We find that several acceding countries have a quite high correlation of demand shocks with the euro area however supply shocks are asymmetric; the correlation between euro area and central and east European countries (CEECs) is negative. We therefore conclude that joining the European Monetary Union is not yet possible: central and east European countries have to make structural changes to join the European Monetary Union.
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Hudec, Martin. "A Search for an Optimum Currency Area." Studia Commercialia Bratislavensia 11, no. 39 (June 1, 2018): 75–90. http://dx.doi.org/10.2478/stcb-2018-0006.
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Abstract Economic and monetary integration is the result of unifying efforts that have become a major driving force in post-war Europe. Although some of the initial initiatives, the Monetary Union project has many times been on the brink of interest. It can be as the surprise that Europe has managed to implement the common currency so soon and relatively smoothly. Nevertheless, even after its launch, this project has never completely abandoned criticism and discussion of the legitimacy and meaningfulness of its existence. Critical attitudes to the introduction of the common currency in the European Union are based above all on the Optimum Currency Area theories. The theoretical concept of optimal currency areas is currently considered a standard tool for assessing monetary integration efforts in Europe. OCA criteria are used to estimate the readiness of the candidate countries to adopt the euro, while the convergence processes are linked to the decision on the euro adoption timeline. The aim of our research article is, therefore, to closely analyze the issue of monetary policies and optimal currency areas in the context of convergence efforts towards more closely integrated economic and monetary unions.
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Pishchik, V. Ya. "Institutional Mechanisms for Regulating External Imbalances in the European Economic and Monetary Union." Economics, taxes & law 11, no. 6 (December 26, 2018): 131–42. http://dx.doi.org/10.26794/1999-849x-2018-11-6-131-142.
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The relevance of the research is driven by the need to reveal modern factors and specifics of structural financial imbalances typical for regional integrated associations by an example of the European Union and to assess new mechanisms for regulation of disparities and investment cooperation development in a region. The subject of the research is the factors, trends and consequences of the division of EU countries into creditors and debtors by parameters of external debt financing; structure and directions of cross-border financial flows; and net international investment position based on the analysis of statistics related to types, structure and scale of external imbalances in the euro area as well as to methods and institutional mechanisms for their regulation. The purposes of the research were to reveal the acuteness of external imbalances in the countries of the European Economic and Monetary Union (EMU) in the financial sphere as a factor of macroeconomic destabilization in the region and systematize measures for strengthening and development of various institutional mechanisms to level off the remaining structural imbalances and expand the channels of investment in the real economy as part of the project to create a sustainable renovated EMU in the period until 2025 It is concluded that new more developed forms of regional financial integration, including the creation of the Banking Union and the Union of Capital Markets, the European Monetary Fund and the European Fund for Strategic Investment, are strategically important as effective institutions for regulation of external financing imbalances and support of investment in the economic development.
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Özdeşer, Hüseyin. "Analysis of the Economic Impacts of the Euro, the Efficiency of the Euro in the Optimum Currency Area, and the Place of the Euro in Global Economics." European Review 28, no. 2 (January 7, 2020): 258–75. http://dx.doi.org/10.1017/s1062798719000449.
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The introduction of the euro has led to three dominant currencies in the financial markets, namely the euro, dollar and yen. The use of the euro as the single currency is a key element for economic and political unification in the EU (European Union). While some of the criteria for achieving monetary integration between the European Monetary Union (EMU) member countries in the euro area have been satisfied, some problems still remain. As the euro is not the currency of a single country like the dollar, the dollar still retains its dominant position in the international markets. After the Brexit referendum, apprehension regarding the collapse of the EU has reached a peak. Originally introduced in 12 EU member countries, and since extended to 19, the euro may potentially embrace 27 member countries. In this study, the economic impacts of the euro on the per capita income, inflation rate and foreign direct investment are analysed. The analysis will be performed on three countries participating in the EMU, namely, Germany, France and Italy.
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Balabanova, Zlatina, and Ralf Brüggemann. "EXTERNAL INFORMATION AND MONETARY POLICY TRANSMISSION IN NEW EU MEMBER STATES: RESULTS FROM FAVAR MODELS." Macroeconomic Dynamics 21, no. 2 (March 17, 2016): 311–35. http://dx.doi.org/10.1017/s1365100515000516.
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We investigate the effects of monetary policy shocks in the new European Union (EU) member states the Czech Republic, Hungary, Poland, and Slovakia. In contrast to existing studies, we explicitly account for external developments in European Monetary Union (EMU) countries and in other acceding countries. We do so by using factor-augmented vector autoregressive models that employ information from nonstationary factor time series. One set of VAR models includes factors obtained from a large cross section of time series from EMU countries, whereas another set includes factors obtained from other acceding countries. We find that including EMU factors does change impulse response patterns in some but not all acceding countries. In contrast, including factors from other acceding countries leads to substantial changes in impulse responses and to economically more plausible results. Overall, our analysis highlights that taking external economic developments properly into account is crucial for the analysis of monetary policy in the new EU member states.
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Stawska, Joanna. "Dependencies between Variables from the Area of the Monetary and Fiscal Policy in the European Union Countries." Comparative Economic Research. Central and Eastern Europe 24, no. 1 (March 30, 2021): 7–25. http://dx.doi.org/10.18778/1508-2008.24.01.
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Research background: The core of coordinating a monetary and fiscal policy (policy mix) is based on combining both policies to achieve goals related to price stability, as well as economic growth and employment. In turn, the decisions of economic authorities in the monetary-fiscal game have a significant impact on economic variables in the economy. In the economic literature, the importance of monetary and fiscal policy coordination is emphasized as it has a positive effect on the stability of the economy. Purpose of the article: The aim of the article is to identify the dependencies between variables in the scope of fiscal policy and monetary policy under existing economic conditions and then assess their impact on the economy in the EU countries.
Methods: To achieve this objective, the following research methods were used: a review of the scientific literature, a presentation of statistical data, and statistical research methods.
Findings & Value added: The rationale for adopting such issues is to examine the impact of the financial crisis on the decisions of central banks and governments in the EU. The financial crisis has affected a change in the approach to conducting monetary and fiscal policy. The changing economic conditions forced economic authorities to take many decisions that affected the interaction between the central bank and the governments in the EU Member States. In many EU countries in the discussed period, there were significant interdependencies between variables in both monetary and fiscal policy.
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Dai, Yuwen. "Monetary Policy and Financial Sustainability in a Two-State Open Economy." Sustainability 14, no. 8 (April 18, 2022): 4825. http://dx.doi.org/10.3390/su14084825.
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Monetary policy and financial sustainability are linked. However, the role of monetary policy and its implementation have come under particular scrutiny after the 2008 Global Financial Crisis (GFC) and the 2010 European sovereign debt crisis, where one of the main challenges was financial sustainability. In this paper, we contribute to the literature by improving our understanding of the influence of monetary policy on financial sustainability for a monetary union. To that end, we develop a two-state open economy macroeconomic model, in which the two state economies have the same monetary policy but maintain their fiscal independence. Examples include two countries in the eurozone, two states in the United States, core and periphery countries, etc. The linkages between these two state economies are inter-state trade in goods and inter-state borrowing in bonds. We apply the calibrated model and conduct economic experiments under alternative monetary policy regimes. The model simulation shows that monetary policy is incorrect if inflation differentials persist in a monetary union, and that incorrect monetary policy leads to real interest rates that are too low for high inflation countries, which become indebted after excessive borrowing. This study sheds light on how monetary policy should be implemented if inflation differs in countries within a monetary union. Our findings draw policy implications for those “two-state” economies considering alternative macroeconomic policy regimes to achieve financial sustainability and regional economic integration.
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Arrowsmith, John. "Economic And Monetary Union in A Multi-Tier Europe." National Institute Economic Review 152 (May 1995): 76–96. http://dx.doi.org/10.1177/002795019515200106.
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It is now looking increasingly plausible that, at some point between the middle of 1997 and the beginning of 1999, a number of EC Member States (perhaps even a majority) will move to the final stage of Economic and Monetary Union. The macro economic consequences of EMU and the costs and benefits ofparticipating are already the subject ofactive and extensive academic analysis. Very little attention has so far been given to the question of how a two-tier EMU, with only some EC countries prticipating in Stage 3, would function and what implications there might be for those remaining in Stage 2.The purpose of this Note is to highlight some of these issues, which will need to be studied and understood in much greater depth before a decision is taken. It looks at the legal and institutional framework set out in the Maastricht Treaty, the relevant experience of nearly-fixed European exchange rates from 1987 to 1992 and the economic and political implications of particular country configurations in a two-tier EMU, concluding that mutually satisfactory management of such a relationhip will require greater political will and co-operative spirit than has been in evidence so far.
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Grieco, Joseph M. "The Maastricht Treaty, Economic and Monetary Union and the neo-realist research programme." Review of International Studies 21, no. 1 (January 1995): 21–40. http://dx.doi.org/10.1017/s0260210500117504.
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With the Treaty on European Union, or the Maastricht Treaty, into force in November 1993, the member-states of the European Community (EC) appeared to be embarking on a far-reaching enterprise to enhance the authority of Community institutions. Continuing a process that had begun with the Single European Act (SEA), into force in 1987, Maastricht increased the powers of the European Parliament. It established mechanisms whereby EC countries were to seek to improve policy coordination in such diverse areas as social affairs, high technology, border controls, immigration, and anti-crime efforts. It committed the EC members to work toward the establishment of a common foreign and security policy. Most importantly, it laid out a path and timetable for qualified EC members to achieve Economic and Monetary Union (EMU) by the end of the 1990s.
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Kasumović, Merim, and Erna Heric. "Nominal and Real Convergence as a Determinant for Joining the European Monetary Union." ECONOMICS 5, no. 1 (June 1, 2017): 52–71. http://dx.doi.org/10.1515/eoik-2017-0011.
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Summary The thematic framework of this work is the nominal and real convergence as a determinant for joining the European monetary union. The focus of the work is to prove that realising the criteria of the convergence affects the stability of the European monetary union, that is, that the cause of destabilisation is exactly the fact that certain member nations have not realised the assigned convergence criteria. The financial integration is an important question because it contributes to the economic growth affecting free exchange with the goal of a more efficient allocation of capital; it is the result of the economic theory and the empirical research. Introducing the Euro as a single payment method while losing the monetary sovereignty of the countries which have accepted it is the main reason for forming the European Central Bank. The mission of the European Central Bank is to define and conduct a single monetary policy within the Eurozone. Because of the already mentioned facts, the challenges of conducting the fiscal policy within the Eurozone as well as the key aspects of the monetary unification of Europe have been analysed. The results of this analysis should point out the stability of the EMU by the convergence degree of the member nations from a single monetary area.
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Kozłowska, Anna. "The Home Bias in the Process of European Integration." Equilibrium 4, no. 1 (June 30, 2010): 143–52. http://dx.doi.org/10.12775/equil.2010.011.
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This article aims to identify the relationship between the phenomenon of home bias and the process of European integration. During the past decades, European integration has evolved from a Common Market and the Customs Union, the Internal Market and Economic, and Monetary Union. Despite the improvements in integration of European markets, their potential is not fully exploited. Countries consumption baskets and inwestment portfolios still contain a predominant share of domestically produced products and domestic assets and national-born workers working in national labour markets. This is commonly known as the phenomenon of home bias.
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Tohmo, Timo, Kari Heimonen, and Mika Nieminen. "Effects of the European Monetary Union on High-Technology Exports." Journal of Industry, Competition and Trade 21, no. 2 (March 18, 2021): 251–85. http://dx.doi.org/10.1007/s10842-021-00354-8.
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AbstractOur study estimates the effects of the European Monetary Union (EMU) on high-technology (HT) export and assesses the potential knowledge spillovers of such trade. Irrespective of the importance of the HT trade channel, none of the previous studies in the literature focus on the effects of a common currency on HT trade. Increasing trade in the HT sector may lead to more efficient use of resources and help countries to move towards a knowledge-based economy. Moreover, it may lead to higher overall growth. After considering multilateral resistances, pair fixed effects and bias correction in the preferred (three-way bias-corrected) model, EMU membership becomes negative and statistically non-significant for HT exports. Furthermore, our findings indicate that the effect of the EMU on HT exports is country-specific, which lends support to the notion of non-homogenous knowledge transfer and country-related knowledge-based economic development within the EMU.
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Vuković, Ivan. "Development of European Union and joining perspective of Croatia." Tourism and hospitality management 13, no. 2 (June 2007): 507–14. http://dx.doi.org/10.20867/thm.13.2.7.
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In this paper we researched European Union starting with the Agreement from Maastrich from year 1992, even though the European Union has a long traditional history and its origin is founded on regulations of economical integrations in Europe beginning from the 1950’s through the Roman treaty from year 1957 and the forming of the European Union Committee in year 1965. Further we follow her expansion and introduction of the European economic and monetary policy, to last, the joining perspective of Croatia. According to the Agreement from Maastrich, European Union lies on three posts: 1) Legal-political and regulative post, 2) Economical post, where the forming of European economical and monetary policy is in the first plan, especially the introducing of Euro as the unique European currency, 3) Post of Mutual foreign security policy within European Union. In that context we need to highlight the research conducted here and in European Union, including the world, regarding development of European Union and its economical, legal, political and cultural, as well as foreign diplomatic results, which are all perspectives of European Union. All the scientists and researches which were involved in exploring the development of EU with its modern tendencies and development perspective, agree that extraordinary results are achieved regards to economical, legal, political, foreign-security and diplomatic views, even tough many repercussions exist in progress of some particular members and within the EU as a whole. The biggest controversy arises in the perspective and expanding of European Union regarding ratification of the Constitution of EU from particular country members, but especially after the referendum was refused from two European countries, France and Netherlands. According to some estimates, the Constitution of EU would have difficulty to be adopted in Switzerland and some other Scandinavian countries, but also in Great Britain and other very developed countries. However the European Community and European Union were developing and expanding towards third European countries, regardless of Constitutional non-existence, where we can assume that if and when the Constitution of EU will be ratified, the EU will further develop as one of the most modern communities. This will enable economical development, especially development of European business, unique European market and free trade of goods and services, market of financial capital and labour market in free movement of labour. Being that EU has become one of the most largest dominating markets in the world, it offers a possibility to all new members to divide labour by using modern knowledge and high technology which insure economical, social and political prosperity. This results to forming a society of European countries which will guarantee all rights and freedom of development for all nations and ethnic groups. As well as, all European countries with somewhat less sovereignty, but in international relations will be stronger and significant, not only in sense of economics, but also in politics and military diplomatic relations. Therefore, Croatia has no choice and perspective if she does not join the European Union till year 2010, but until than it needs to create its strategy of economical and scientific-technological development, including demographic development, which will insure equal progress of Croatia as an equal member of European Union.
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Poulou, Anastasia. "Austerity and European Social Rights: How Can Courts Protect Europe's Lost Generation?" German Law Journal 15, no. 6 (October 1, 2014): 1145–76. http://dx.doi.org/10.1017/s2071832200019301.
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The European financial crisis has called many of the assumptions of the constitutional structure of the European Union (EU) into question. The market-based model of the European Monetary Union (EMU) led to an improper assessment of the borrowing capacity of the euro-area Member States and a mispricing of their default risk. Another design flaw of the EMU that has been exposed by the crisis was the weakness of the existing framework for economic policy coordination. The factual interdependence of the participating economies in the monetary union was so strong that the denial of some form of assistance to the debt-distressed countries triggered a domino effect in the Eurozone as a whole. The quest for instruments to address the sovereign debt crisis brought a European constitutional crisis to the forefront: the EU did not possess the appropriate mechanisms to help the states in need and to guarantee financial stability in the EMU.
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Ganguli, Subhadra. "An economic analysis of sustainability of a potential GCC economic and monetary union during 2005-2014." World Journal of Entrepreneurship, Management and Sustainable Development 12, no. 3 (July 11, 2016): 194–206. http://dx.doi.org/10.1108/wjemsd-01-2016-0005.
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Purpose – Gulf Cooperation Council (GCC) was set up in 1981 between Bahrain, Oman, Qatar, Saudi Arabia, United Arab Emirates and Kuwait for strengthening cooperation and economic development in the region. The GCC has made strides towards economic consolidation by forming a customs union and a common market. The long-term vision is to create an Economic and Monetary Union (EMU) with a single currency. Progress towards the EMU has been slow and the recent oil price plunge has led to concerns regarding sustainable growth of member countries due to their significant dependence on oil and lack of diversification. The purpose of this paper is to analyse the scope of an EMU in the GCC against the backdrop of current oil crisis and examine sustainability of such a union. The paper studies convergence criteria similar to the ones followed by the accession countries of the European EMU in the 1990s preceding the introduction of the single currency Euro. Design/methodology/approach – The paper draws its practical approach from the experience of the European Monetary Union, though the original idea of the single currency in Optimum Currency Areas was conceived by Mundell (1961). The present paper analyses macroeconomic time-series variables (e.g. GDP, budget deficits, debt, growth rates, inflation rates, exchange rates) for GCC during the period 2005-2014. Data has been sourced from United Nations Conference on Trade and Development (UNCTAD), The World Bank and International Monetary Fund (IMF) databases to study the convergence criteria adopted by the EMU countries for the introduction of the Euro. Findings – The paper concludes that GCC economies are similar in terms of their structural and economic fundamentals. Most elements of the convergence criteria that were followed by the accession countries in Europe are fulfilled by the GCC member states, particularly during 2011-2014. The GCC states look similar in terms of sustainable growth, price stability and exchange rate stability – three aspects of convergence met by the European Union states. However, heavy dependence on oil and lack of diversification from oil and hydrocarbon-related products in the gross domestic product (GDP) composition of GCC states pose severe risks to the potential union. Fiscal vulnerabilities of these economies to oil price shocks, such as the current oil price crisis, create concerns for such a union during oil price lows. Widely divergent fiscal deficit-to-GDP ratios and rising debt-to-GDP ratios during periods of low oil prices imply the lack of sound and unsustainable public finances for some of the GCC states. The divergence has stemmed from widely different break-even oil prices for government budgets within the GCC and also due to varying degrees of oil dependencies between the member states. The scope of a successful and more sustainable EMU can be further explored once the GCC economics have achieved adequate diversity from oil. Originality/value – The study is useful to policy makers, central banks, businesses and researchers since it highlights the EMU as a feasible option for the GCC states. The sustainability of the EMU is contingent on diversification of these economies in the future from oil and oil-related products. The study can be utilized by policy makers as a strategy to further restructure GCC economies towards greater resilience and integration prior to accession to the GCC EMU.
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Syrrakos, Dimitrios. "The Franco-German Alliance and Its Role in the Process of European Monetary Integration, 1944-2010 - Lessons for Today." Olsztyn Economic Journal 11, no. 2 (June 30, 2016): 119–35. http://dx.doi.org/10.31648/oej.2915.
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The aim of this paper is to assess the evolution of the Franco-German alliance and the likely directions in its development. In particular, the question of whether the two countries' close relationship would survive the current economic and political obstacles is addressed. Emphasis is, placed on the way the alliance facilitated the creation of European Monetary Union. Therefore, the signing of the Treaty of Rome, the establishment of the European Monetary System, the creation of the Single European Act and the Maastricht Treaty are evaluated within this perspective. An underlying assumption throughout the analysis is that the prospects of the alliance and EMU will proceed in tandem. If the alliance continues to evolve successfully then the process of European economic integration will also progress, whereas if the two countries relations increasingly attenuate then the process of economic integration would at best stagnate. The main conclusion is that, following the Eurozone debt crisis the Franco-German alliance has been, replaced by "German Hegemony". This has rendered the main driving force of the European Union ineffective and as such has undermined the evolution of its institutions.
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Fei, Jiaming. "Analysis of EMU as a Viable Common Currency Area." BCP Business & Management 18 (April 13, 2022): 28–33. http://dx.doi.org/10.54691/bcpbm.v18i.532.
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The euro crisis has significantly influenced Europe's progress, but many experts continue to doubt the European Monetary Union's long-term viability. Those without independent monetary policy will be unable to support their economies through currency devaluation if an economic crisis occurs. Countries that are not experiencing a situation would also be affected. Overall, the EMU benefits individual countries while also benefiting the entire EU. Each nation has distinct benefits from utilizing the euro, notably during the financial crisis. A monetary union without a fiscal union would be a catastrophe, but a severe enough problem would motivate European countries to move closer together. The European Central Bank has also implemented a massive bond-buying program to keep borrowing rates low. The eurozone has been able to respond to the consequences of the coronavirus outbreak reasonably rapidly. The research conclusion of this paper indicates that during the euro's implementation, countries' cooperation and development should be bolstered, the issue of benefit-sharing should be thoroughly investigated, an exchange and cooperation mechanism between countries should be established under the unified currency system, and a community of interests should be established.
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Fei, Jiaming. "The Analysis of EMU as a Viable Common Currency Area." BCP Business & Management 18 (April 13, 2022): 436–41. http://dx.doi.org/10.54691/bcpbm.v18i.582.
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The euro crisis has significantly influenced Europe's progress, but many experts continue to doubt the European Monetary Union's long-term viability. Those without independent monetary policy will be unable to support their economies through currency devaluation if an economic crisis occurs. Countries that are not experiencing a situation would also be affected. Overall, the EMU benefits individual countries while also benefiting the entire EU. Each nation has distinct benefits from utilizing the euro, notably during the financial crisis. A monetary union without a fiscal union would be a catastrophe, but a severe enough problem would motivate European countries to move closer together. The European Central Bank has also implemented a massive bond-buying program to keep borrowing rates low. The eurozone has been able to respond to the consequences of the coronavirus outbreak reasonably rapidly. The research conclusion of this paper indicates that during the euro's implementation, countries' cooperation and development should be bolstered, the issue of benefit-sharing should be thoroughly investigated, an exchange and cooperation mechanism between countries should be established under the unified currency system, and a community of interests should be established.
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Holobiuc, Ana-Maria. "Determinants of economic growth in the European Union. An empirical analysis of conditional convergence." SocioEconomic Challenges 5, no. 2 (2021): 26–34. http://dx.doi.org/10.21272/sec.5(2).26-34.2021.
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Being established from the initiative of six visionary countries in the second half of the 20th century, the European Economic Community has shifted the history of the European continent by promoting economic collaboration and political stability. Given its initial success, the regional group has quickly evolved from customs union to Economic and Monetary Union, comprising nowadays twenty-seven European countries. Although the European Union has successfully managed political, economic, social and even sanitary turmoil, the stability of the European architecture continues to be threatened by the heterogeneity of its members. In this respect, one of the main challenges for the European Union in its current composition aims the convergence of the economic performance between countries and regions. The purpose of this paper is to study the economic growth patterns in the European Union during 2000 and 2019, also conducting a comparative analysis between New and Old Member States. In order to capture the European economic landscape, the methodology was based on conditional β-convergence and the estimates were conducted by using ordinary least squares and generalized least squares with fixed effects. We have tried to find the relationship between the lagged value of GDP per capita and the subsequent growth rates, but also to study the influence of macroeconomic and social-related variables. By estimating regressions based on panel data, we have found evidence in favor of income convergence in the European Union, based on the inverse relationship between the lagged value of GDP per capita and the annual growth rates. Moreover, the comparative analysis between the New and Old Members illustrated that convergence was stronger in the latter group, given the sound macroeconomic and social environment. The empirical analysis suggested that the economic growth process both at aggregate and subgroup level was enhanced by investment, exports of goods and services, sound public finances and the increase of percentage of population with tertiary education. Consequently, in order to increase the cohesion between Members and to avoid separatist movements, the European decision-makers should strengthen the macroeconomic and social frameworks, maintaining a sustainable economic growth trajectory for both the New Members from Central and Eastern Europe and the Old Member States.
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Tang, Donny. "Has European monetary union influenced the European Union bank lending flows to the EU countries from Central and Eastern Europe?" Journal of Financial Economic Policy 11, no. 2 (May 7, 2019): 263–82. http://dx.doi.org/10.1108/jfep-05-2018-0080.
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Purpose The purpose of this study is to modify the gravity model to identify the main determinants of the European Union (EU) bank lending to the Central and Eastern Europe (CEE) countries during 1994-2012. Design/methodology/approach This study uses both two-stage least squares and dynamic generalized method of moments to estimate the modified gravity model. Findings This study finds that the CEE countries with more developed stock markets have received the higher EU bank lending inflows. The EU banks have greater access to additional financing in the stock markets. Second, the higher stock market difference between the CEE and EU countries has boosted the EU bank lending. Compared to the developed EU stock markets, the less developed CEE stock markets have become more favorable to the EU banks seeking to earn higher profits. Research limitations/implications The CEE countries can further boost the EU bank lending inflows through deepening capital liberalization. They should facilitate easy foreign bank entry by reducing excessive bank legislations and regulations. Moreover, they can promote the EU bank lending through substantial EU bank integration. This can accelerate the major bank reform which would facilitate better bank supervision and regulations. Originality/value Most previous studies have primarily used the macroeconomic and institutional factors to explain the EU bank lending. In contrast, this study explores the growing importance of the CEE financial development and bilateral trade in explaining the EU bank lending.