The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Genuine Economic and Monetary Union

  • Iain Begg
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2892

Abstract

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.

Keywords

Economic and monetary union Euro European Union Monetary integration Optimum currency area Sovereign debt crisis 
This is a preview of subscription content, log in to check access

Bibliography

  1. Allard, C., P. Koeva Brooks, J.C. Bluedorn, F. Bornhorst, K. Christopherson, F. Ohnsorge, and T. Poghosyan. 2013. Towards a fiscal union for the euro area. IMF Staff Discussion Note 13/09. https://www.imf.org/external/pubs/ft/sdn/2013/sdn1309.pdf.
  2. Andor, L., S. Dullien, X. Jara, H. Sutherland, and D. Gros. 2014. Forum: Designing a European unemployment insurance scheme. Intereconomics 49(4): 184–203.CrossRefGoogle Scholar
  3. Begg, I. 2009. Fiscal federalism, subsidiarity and the EU budget review. Policy report, 2009, 1. Stockholm: Swedish Institute for European Policy Studies.Google Scholar
  4. Begg, I. 2013. The political economy of sovereign debt crises. SUERF studies, 2013/01: 7–13.Google Scholar
  5. Belke, A. 2013. Towards a genuine economic and monetary union – Comments on a roadmap. Politics and Governance 1: 48–65.CrossRefGoogle Scholar
  6. Bini-Smaghi, L. 2014. Austerity: A threat to democracy. International Spectator 49(1): 7–17.CrossRefGoogle Scholar
  7. Blinder, A., T.J. Jordan, D. Kohn, and F. Mishkin. 2013. Exit strategy. Geneva report on the world economy, 15. London: CEPR.Google Scholar
  8. Blyth, M. 2013. Austerity: The history of a dangerous idea. Oxford: Oxford University Press.Google Scholar
  9. Bonatti, L., and A. Fracasso. 2013. The German model and the European crisis. Journal of Common Market Studies 51(6): 1023–1039.CrossRefGoogle Scholar
  10. Bordo, M.D., L. Jonung, and A. Markiewicz. 2013. A fiscal union for the euro: Some lessons from history. CES-ifo Economic Studies 59(3): 449–488.CrossRefGoogle Scholar
  11. Buti, M., S. Deroose, V. Gaspar, and J. Nogueira Martins. 2010. The euro: The first decade. Cambridge: Cambridge University Press.Google Scholar
  12. Caudal, N., N. Georges, V. Grossmann-Wirth, J. Guillaume, T. Lellouch, and A. Sode. 2013. Un budget pour la zone euro. Trésor Éco Lettre No. 120.Google Scholar
  13. Cohen, B.J. 2012. The future of the euro: Let’s get real. Review of International Political Economy 19(4): 689–700.CrossRefGoogle Scholar
  14. Constancio, V. 2014. The European crisis and the role of the financial system. Journal of Macroeconomics 39(part B): 250–259.Google Scholar
  15. Council and Commission of the EC. 1970. Report to the Council and the Commission on the Realisation by Stages of Economic and Monetary Union in the Community – The Werner Report. Bulletin of the EC, 7–1970, Suppl.Google Scholar
  16. De Grauwe, P. 2006. What have we learnt about monetary integration since the Maastricht treaty? Journal of Common Market Studies 44(4): 711–730.CrossRefGoogle Scholar
  17. De Grauwe, P. 2013. Design failures in the Eurozone: Can they be fixed? LSE ‘Europe in Question’ discussion paper series no. 57/2013.Google Scholar
  18. Delpla, J., and J. von Weizsäcker. 2011. Eurobonds: the blue bond concept and its implications. Bruegel policy contribution 2011/02.Google Scholar
  19. Eichengreen, B. 2007. The break-up of the euro area. NBER working paper no. 13393.Google Scholar
  20. Eichengreen, B. 2012. European monetary integration with benefit of hindsight. Journal of Common Market Studies 50(S1): 123–136.CrossRefGoogle Scholar
  21. Eichengreen, B. 2014. The Eurozone crisis: The theory of optimum currency area bites back. Notenstein Academy White Paper Series.https://www.notenstein.ch/sites/default/files/publications/white_paper_eichengreen.pdf.
  22. European Commission. 1990. One market, one money: an evaluation of the potential benefits and costs of forming an economic and monetary union. European Economy Economic Papers, 44.Google Scholar
  23. European Commission. 2011. Green paper on the feasibility of introducing stability bonds. COM(2011) 818 final, Brussels, 23 November.Google Scholar
  24. European Commission. 2012. A blueprint for a deep and genuine economic and monetary union launching a European debate. COM(2012) 777 final, Brussels, 28 November.Google Scholar
  25. European Commission. 2013a. Towards a deep and genuine economic and monetary union: ex-ante coordination of plans for major economic policy reforms. COM(2013) 166 final, Brussels, 20 March.Google Scholar
  26. European Commission. 2013b. Towards a deep and genuine economic and monetary union: the introduction of a Convergence and Competitiveness Instrument. COM(2013) 165 final, Brussels, 20 March.Google Scholar
  27. European Council. 2012a. Towards a genuine economic and monetary union: report by President of the European Council, Herman van Rompuy. EUCO120/12, Brussels, 26 June.Google Scholar
  28. European Council. 2012b. Towards a genuine economic and monetary union. Brussels, 5 December.Google Scholar
  29. Favero, C., and A. Missale. 2012. Sovereign spreads in the euro area: Which prospects for a eurobond? Economic Policy 27(4): 231–273.CrossRefGoogle Scholar
  30. Fuest, C., and A. Peichl. 2012. European fiscal union: what is it? Does it work? And are there really ‘No Alternatives’? IZA Policy Paper, 39. Bonn: IZA.Google Scholar
  31. German Council of Economic Experts. 2012. After the euro area summit: Time to implement long-term solutions. Special Report 2012. http://www.sachverstaendigenrat-wirtschaft.de/fileadmin/dateiablage/download/publikationen/special_report_2012.pdf.
  32. Gros, D., and T. Mayer. 2010. How to deal with sovereign default in Europe: Towards a Euro(pean) monetary fund. CEPS Policy Brief no. 202. Brussels: CEPS.Google Scholar
  33. Honkapohja, S. 2014. The euro crisis: A view from the North. Journal of Macroeconomics 39: 260–271.CrossRefGoogle Scholar
  34. House of Lords. 2014. Genuine economic and monetary unionand the implications for the UK. European Union Committee 8th Report of Session 2013–14. London: The Stationery Office.Google Scholar
  35. Howarth, D., and L. Quaglia. 2013. Banking union as holy grail: Rebuilding the single market in financial services, stabilizing Europe’s banks and ‘completing’ economic and monetary union. Journal of Common Market Studies, Annual Review 2012: 103–123.Google Scholar
  36. Krugman, P. 2012. Revenge of the optimum currency area. In NBER macroeconomics annual, ed. D. Acemoglu, J. Parker, and M. Woodford, vol. 27.Google Scholar
  37. Lane, P.R. 2012. The European sovereign debt crisis. Journal of Economic Perspectives 26(3): 49–68.CrossRefGoogle Scholar
  38. Leblond, P. 2014, forthcoming. The logic of a banking union for Europe. Journal of Banking Regulation 16.Google Scholar
  39. MacDougall, G.D.A. 1977. Report of the study group on the role of public finance in European integration. Luxembourg: OOPEC.Google Scholar
  40. McKinnon, R. 2004. Optimum currency areas and key currencies: Mundell I versus Mundell II. Journal of Common Market Studies 42(4): 689–715.CrossRefGoogle Scholar
  41. Mongelli, F. 2013. The mutating euro area crisis: Is the balance between ‘sceptics’ and ‘advocates’ shifting? ECB Occasional Paper No. 144.Google Scholar
  42. Muellbauer, J. 2013. Conditional eurobonds and the euro sovereign debt crisis. Oxford Review of Economic Policy 29(3): 610–645.CrossRefGoogle Scholar
  43. Obstfeld, M. 2013. Finance at center stage: Some lessons of the euro crisis. European Economy Economic Papers No. 493.Google Scholar
  44. Pâris, P. and Wyplosz, C. 2014. PADRE: Politically acceptable debt restructuring in the Eurozone. Geneva Special Report on the World Economy, vol. 15. London: CEPR.Google Scholar
  45. Pisani-Ferry, J. 2012a. The known unknowns and the unknown unknowns of European monetary union. Journal of International Money and Finance 34: 6–14.Google Scholar
  46. Pisani-Ferry, J. 2012b. The euro crisis and the new impossible trinity. Bruegel policy contribution, Issue 2012/01. Brussels: Bruegel.Google Scholar
  47. Pisani-Ferry, J., and G. Wolff. 2012. The fiscal implications of a banking union. Bruegel policy brief. Brussels: Bruegel.Google Scholar
  48. Sawyer, M. 2013. Alternative economic policies for the economic and monetary union. Contributions to Political Economy 32(1): 11–27.CrossRefGoogle Scholar
  49. Schulmeister, S. 2013. The European Monetary Fund: A systemic problem needs a systemic solution. Revue de l’OFCE, 2013/01 (no. 127), 389–424.Google Scholar
  50. Tommaso Padoa-Schioppa Group [TPSG]. 2012. A roadmap towards fiscal union in Europe. Paris: Notre Europe.Google Scholar
  51. Vallée, S. 2014. From mutual insurance to fiscal federalism: Rebuilding the economic and monetary union after the demise of its Maastricht architecture. International Economics 138: 49–62.CrossRefGoogle Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Iain Begg
    • 1
  1. 1.