The Economic and Monetary Union

Timeframe: Completed
Project manager: Ulrika Stavlöt

Economic and monetary union (EMU) is the process of harmonising the economic and monetary policies of the Member States of the Union with a view to the introduction of a single currency, the euro. Eleven Member States adopted the euro as the single currency on 1 January 1999 and two countries have joined the euro zone at a later stage. With the 10th anniversary of the euro the interest for the Economic and Monetary Union has resurfaced and a large number of evaluations of the single currency’s economic and political effects for the Member States inside and outside the euro zone are conducted. In 2009 SIEPS has published three analyses of the effects of the euro on 1. Trade and investments; 2. Business cycle synchronization in the Nordic countries; and 3. Sweden’s political status as a euro-outsider.

In 2010 an analysis of the Stability and Growth Pact (SGP) in view of the economic crisis will be published. Should the SGP be strengthened to assure financial stability of the Member States at an economic crisis?  Or should the SGP be more flexible and allow for deviations during extreme economic situations? In what pace should the Member States that deviate from the balanced budget goal that is specified by the Pact, converge towards the goal?