The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Genuine Economic and Monetary Union

  • Iain Begg
Reference work entry


The severity of the euro crisis has already led to a series of reforms in economic governance, but it is accepted that further reforms are needed to make the euro more robust and resilient to asymmetric shocks. Proposals put forward by the EU’s leaders to create a ‘genuine’ economic and monetary union, some of which have already been adopted, would deepen European integration to include a banking union, a greater degree of fiscal and political union and closer coordination of other economic policies. This article explains the background to the initiatives to establish a genuine economic and monetary union and assesses the progress towards achieving such a union.


Economic and monetary union Euro European Union Monetary integration Optimum currency area Sovereign debt crisis 

JEL Classification

E6 E42 F15 F33 F36 H3 H6 O3 O31 O320 O380 
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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Iain Begg
    • 1
  1. 1.