European Economic and Monetary Union and the advantages and disadvantage forUK membership
The European Economic and Monetary Union and the advantages and disadvantage for UK membership Present position of the euro Economic and monetary union (EMU) has been a recurring ambition of the European Union since the late 60s because it promises both currency stability and strong advance towards the integration of Europe. However a variety of political and economic obstacles had barred the way until the signing of the Maastricht treaty in February 1992. At various times weak political commitment, divisions over economic priorities. Lack of economic convergence and developments in internal currency markets outside the unions control has played their part in cutting the progress towards the EMU. Mastic treaty Nevertheless the story of the last 30 years is one instant search by the member states of the union for deeper monetary cooperation as a means of strengthening the political bonds between them and to protect their central creation the common market. ... S dollar as the dominant monetary standard. ... They did not feel the need to develop detailed policies although the committee recognized the need for certain measures of monetary policy coordination. ... Werner recommended a strengthening of economic policy coordination in parallel with the narrowing exchange rate fluctuations. ... The group said agreements would be needed to set frameworks for national policies and on the method of balancing deficits or using surpluses institutionally the Werner report called vaguely for the creation of "the centre of decision for economic policy" and of "the community system for central banks" The UKs participation in the euro recently has not been written in stone. ... There are many economic and political theories surrounding the advantages and disadvantages of joining the euro. ... The increasing closer integration of the European economies calls for greater monetary coordination, against a background marked by the disappearance of fixed exchange rate regimes and the globalisation of the world economy. The establishment of the European Monetary system represented in the first step in this direction. ... Only the single currency and its environment of stability will provide the citizens of Europe with many practical advantages listed below Ø More efficient single market, once the single market currency is in place Ø The stimulation of growth and employment Ø Elimination of the additional cots connected with the existence of several European currencies Ø An increase in international stability Ø Enhanced joint monetary sovereignty for member states.