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European Monetary Union and the Challenge of Economic Integration

  • Ray Kinsella
  • Maurice Kinsella
Chapter

Abstract

In this chapter we reflect upon mechanisms underpinning the Economic and Monetary Union (EMU), such as economic integration and ‘convergence criteria’. The central argument is that the Euro Project, from the outset, lacked an adequate architecture through which to support its own aims. Not only this, but the infrastructure that was established—alongside the environment that it fostered—actively undermined its stability. Integrated into this discussion is an examination of a cross section of significant antecedents of the European Banking and Debt Crisis. While we are mindful that there were significant precipitants of the crisis that were attributable to developments in the wider geopolitical climate (e.g. the US economic crisis), the factors that comprise the bulk of our discussion are considered to be ‘internally emanating’. These factors are multivariate; just as a storm emerges through the coalescence of more than one adverse weather condition, so too was the storm that assailed Europe formed from distinct yet connected elements, including: embedded competitive asymmetries, deficiencies in response mechanisms, unsustainable sovereign debt accumulation, and dysfunctional banking practices.

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Ray Kinsella
    • 1
  • Maurice Kinsella
    • 2
  1. 1.Michael Smurfit Graduate School of Business (Formerly)Co DublinIreland
  2. 2.The Galilee House of StudiesAthyIreland

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