Conclusions

Abstract

If the notion of a multispeed Europe is accepted, then it makes sense to consider each stage of convergence individually. This book has examined the three major phases of convergence and identified the critical issues in each phase. These are, disinflation and the timing of ERM entry in the presence of a debt constraint and uncertainty about the credibility of policy; stabilization and convergence policies in a wide and narrow band ERM; and, finally, fiscal policy in a monetary union. Although the work has concentrated on individual countries, in order to focus the discussion, the main conclusions are more widely applicable. For example, the analysis of ERM entry and disinflation would be of interest to any high inflation-high debt nation, whilst the conclusions reached for Spain about the ERM apply equally to a host of other ERM members.