The Pros And Cons Of Emu European Monetary Union. A Concise Summary (3000 Words) Of The Main Pros And Cons Of Emu And The Euro Covering Economics, Social Issues, National Soviergnty, Etc.

3421 words - 14 pages

On the 1st of January 1999, 11 countries sat down and worked out the final details with regard to implementing 'Stage 3' of the Euro-Rollout. They also agreed that by 2002, Europe would have a single currency. With the changeover to Euro notes and coins now complete, over 300 million people in the 'Eurozone' are beginning to experience some of the pros, and the cons of EMU.
Theoretically, the concept of EMU can be traced back as far as the Treaty of Rome in 1957. Although the treaty was very vague on issues of monetary policy, it does make reference (in articles 104-109, now 102 to 130) to the establishment of a Monetary Committee, whose task was to "Keep under review the monetary and financial situation." The overall feeling of the committee was at the time however that monetary union was still a relatively undesirable option. Over the years however, this began to change. The advent of the Breton Woods system in the USA promised increased stability through the use of a controlled mechanism of exchange rates. And, by 1969, the EU was beginning to target full monetary union, and this was the centre of debate at the Hague Summit. Progress was very slow however, and it wasn't until 1979 that Chancellor Schmidt of Germany, despite the advice of his own central bank, decided to implement the European Monetary System (EMS) (Gedmin, 1997). The idea behind EMS was to have fixed, but periodically adjustable exchange rates among EU countries, with narrow margins of adjustment.
Since its inauguration in 1979, the EMS can be considered to have been relatively successful in achieving its objectives. Exchange rates were reasonably well stabilised, and EMS was hailed by many as a successful precursor to full European Monetary Union (de Grauwe, 2000). Proponents of monetary union say that the success of EMS is a very important factor when looking at the pros of the euro. However to assume that simply because the EMS was a success that this also means that the Euro will be a success would be rather naïve as the two concepts are still worlds apart.
The final 'big push' towards EMU came in the form of the Maastricht Treaty Summit in December of 1991. The treaty laid down the foundations for monetary union based on the recommendations in the Delors Report (Delors, 1989), and for the first time, EMU seemed like an imminent reality.
EMU has been called "the single most important development on the global monetary scene" (Owen & Cole, 2000). Debate surrounding its likely success tends to be polarized to one extreme view or the other, with some people adamantly 'pro-euro' and other people vehemently 'euro-sceptic'. Those who oppose the euro say that it would be "not merely an ill-advised undertaking, but a disastrous one; a stride further along the road to a European super-state that will submerge individuality of the European nations in an unwieldy federation, hobbled by bureaucracy, commanding little popular support and imposing a crippling burden of...

Find Another Essay On The Pros and Cons of EMU - European Monetary Union. A concise summary (3000 words) of the main pros and cons of EMU and the Euro - covering economics, social issues, national soviergnty, etc.

The Pros and Cons of Social Media

1666 words - 7 pages solution and cut back my time on the internet. Social media allows humans to forget about values, morals and respect, luckily I always remained true to myself while using social media. Although Twitter, Facebook, LinkedIn, Youtube, etc. can negatively influence the world, I believe that social media has influenced me in a positive way. I hate Twitter and almost all of the new social networks, however, I still interact with Facebook. It

The European Monetary Union (EMU) - The Euro as a Single Currency

1720 words - 7 pages The European Monetary Union (EMU) - The Euro as a Single Currency Liberalizing trade is nothing new to the world, but we have never witnessed such a vast economic integration between sovereign countries like the integration carried out in the European Union. Customs duties between European countries started to come down steadily in the early 1950s and were abolished in 1968 with the introduction of a customs union and the implementation of the

The Pros and Cons of Irish Membership of the European Union

1779 words - 7 pages product availability and the added bonus of a single currency will make exchange rates a thing of the past. The single currency or European Monetary Union (EMU) is an aspect of EU membership that will greatly affect all people in each of the member states. At the European Council meeting held in Madrid in December 1995, the European Heads of State, decided to call this single currency the Euro, and come January 1st 2002, Euro notes and coins will

The Pros and Cons of the Internet

1219 words - 5 pages . While looking, he comes upon an essay on the subject that holds a wealth of information. It is too much work to print it out, read it through, pick out the parts that can be used, incorporate it into their own essay in their own words, and then cite the work that the information came from. Instead, he decides that no one will notice if he simply prints off the whole essay, putting his own name in place of the author’s. A researcher is

The pros and cons of immigration

1400 words - 6 pages American Society 2013/2014 Zuzana Ďuržová Mid-Term Essay - The pros and cons of immigration Immigration is the movement of people between countries. People are moving from their home country to search for better opportunities, career or education a chance for better life. People are looking for business opportunities, experience, or may have personal reasons such as family or marriage. If I we are talking about positive and negative aspects

Pros and cons of the promotional mix

972 words - 4 pages which is advertising, personnel selling, sales promotion and public relations tools. No matter how good a strategy or a plan is perform; advantage and disadvantage are surely to exist. The main purpose of conducting this literature review is to precisely identify the advantages and disadvantages of the four elements. One of the most popular promotional elements that company usually us is the advertising, but before we look into the pros and cons

The Pros and Cons of Imperialism

531 words - 2 pages hand, the new imperialism was the period between the years “1870-1914”, where Europe became more focused on expanding their land into Asia and Africa. Imperialism had many pros and cons. In addition, it also had many causes led by the feeling of nationalism. Several significant causes led to the rise of imperialism in Europe. Economy played a role in the rise. For instance, many nations demanded more natural resource that they did not have on

The Pros and Cons of Gay Marriage

1346 words - 5 pages that they should have the benefits of marriage like health insurance being shared, as well as retirement. I agree more of a civil union more than gay marriage because of my faith in God.” “Love is love” says one commenter on About five percent of Americans are indifferent about their views. There are many pros and cons of gay marriage in America. There are many perks about it. Gay marriage in the United States can bring financial

the pros and cons of globalization

2175 words - 9 pages Explain globalization. Include the pros and cons of globalization and provide examples to support what you identify as pros and cons. Globalization can best be defined as the shrinking of our world. As technology advances the gaps between Countries is closed, and our society as a whole becomes more integrated. Globalization is something that has been occurring for thousands of years, with one early example of Globalization being the use of

The Pros and Cons of Genetic Engineering

820 words - 3 pages to create the perfect race, was dolly the sheep just a stepping stone to improved biological weapons. Genetic engineering seems to have the pros and cons, but the cons are basically assuming the worst or are being used for the destruction of mankind, rather than the saving of mankind. The reduction of the gene pool also seems to be a huge risk to take. If recessive genes are erased from an organism, then the gene pool will be reduced resulting

The Pros and Cons of Outsourcing

3682 words - 15 pages functions that are not essential. Where privatization is not practical, they introduce competition by contracting out the service."3 In other words, a task is either wholly turned over to a private organization to run or is given partly to a private agency to run for a set period of time. I will explore both of these issues, i.e. "contracting out" and "privatization/outsourcing" as many of the features of both overlap in terms of the decision making of

Similar Essays

The Pros And Cons Of Social Media

1719 words - 7 pages use of social media does not turn into social dysfunction. Works Cited Birnie, S. A. and Horvath, P. (2002), Psychological Predictors of Internet Social Communication. Journal of Computer-Mediated Communication. Carey, Dachary. "Online Social Networking Pros and Cons." Life123. Web. 16 Feb. 2014. . "Conformity: The

The Pros And Cons Of Social Media

1082 words - 5 pages can see; think twice before posting comments, photos, or videos. In other words, by being educated about the risks of social media, a person is able to make the right choices that will allow for a pleasant experience, while using social media. Accordingly, if we exercise some precaution, and common sense, while using social media, the pros will outweigh the cons. Works Cited Simon, Mallory. "Student 'Twitters' His Way out of Egyptian Jail

The Pros And Cons Of Social Networking

1948 words - 8 pages properly for educational purposes. One of the main benefits of social networking which is why it has gotten so popular is because it allows people to collaborate. Collaboration was one of the main goals of Web 2.0 , and it is extremely important to high school and college students. (cited in “Web 2.0 key to collab and agility says UP”) With the use of social networking technology, students can collaborate on homework, projects, etc more easily than

The Pros And Cons Of Social Media 2260 Words

2260 words - 9 pages internet. Yet, it is now known that the name might not live up to its expectation. With less face-to-face interaction, relationships and communication skills are being sacrificed. Although one may have one thousand friends on facebook, “Social media had devalued the traditional definition of a “friend”, where it means trust, support, compatible values, etc.” One is not able to bond and truly support a friend over the internet.(Tay). Bill Keller, New