The agreement of several European countries to introduce a common currency in the form of the euro (ISO code: EUR). The monetary union came into effect on January 1, 1999 in the form of giro money. After a three-year transition period, the EUR was also introduced in the form of banknotes and coins as official means of payment in the euro area on January 1, 2002. – After twelve years of EMU, it became apparent that it would be difficult to reconcile the excessive differences in the fields of economic and financial policy, which, according to the Treaty, were left to the individual governments. More and more, the ECB has had to deal with the destructive undesirable developments that have occurred (Greek crisis, Irish crisis).
Aid pacts such as the European Financial Stabilization Facility and the European Stability Fund had to be put together by the Community. Thus, a lot of energy from all kinds of bodies and, moreover, a lot of money have to be used to hold the EMU together. All of this could be used much more profitably to strengthen the productivity (productivity: ratio of factor input to output) of the economies in the member states and thus the competitiveness of the companies in the EMU. – On the other hand, it has become clear, especially in the wake of the Greek crisis, that political decision-making in the EMU with its seventeen member states is far too slow. Here, fundamental improvement is urged everywhere. On the occasion of Latvia’s accession to EMU at the beginning of 2014, corresponding proposals were originally to be implemented, but this did not happen. – See devaluation, fiscal, alignment automatism, fear, perverse, bondSpread, disfunctionality, currency area-related, hasty entry, blackmail potential, euro area, European Monetary Union, fundamental error, euro area, euro currency area, euro states, euro area, EMU explosive, ECB fall from grace, fiscal pact, Friedman thesis, money multiplication, monetary union-internal, Greece crisis, peer pressure, coin union, Latin, coin union, Scandinavian, opting-out agreement, Plan C, preclusive deadline, quantitative easing, credit assessment framework, unit of account, European, return ideology, semester, European, blocked account, Stability and Growth Pact, imbalances, EMU-internal, currency area, optimal, transfer union, redistribution, central bank-influenced. – Cf. ECB Monthly Bulletin of May 2011, pp. 95 ff. (on EMU external representation; on international cooperation; legal sources), Deutsche Bundesbank Monthly Bulletin of February 2012, pp. 18 f. (three-phase view; overviews), Deutsche Bundesbank Monthly Bulletin of February 2013, pp. 66 f. (decisions on deepening EMU), ECB Monthly Report of August 2013, p. 16 f. (on Latvia’s accession), ECB Monthly Report of May 2014, p. 93 ff. (different sectoral developments in EMU since 2008; overviews; comparisons with the U.S.; references).34
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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