Summary of Economic Policy Coordination in the Economic and Monetary Union

From Maastricht via the SGP to the Fiscal Pact

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Economic Policy Coordination in the Economic and Monetary Union summary
This scholarly précis explains why the euro zone’s macroeconomic policies are so troubled.

Rating

6 Overall

6 Importance

7 Innovation

5 Style

Recommendation

How did the integration of Europe’s various national economies become such a mess? Researcher Jørgen Mortensen’s short primer offers a detailed history of contemporary European economic policy, the role of the Economic and Monetary Union (EMU), and the recent ratification of the Treaty on Stability, Coordination and Governance. This is not an easy story to tell; frankly, it’s an alphabet soup of acronyms slow cooked by a bureaucracy that makes the United States’ current political gridlock look speedy by comparison. But Mortensen’s report from The Centre for European Policy Studies succeeds in laying out the complexities of the experiment in multinational political economy that is EMU. Despite its density, getAbstract recommends this treatise to international economic policy makers, investors and corporate finance executives as a refresher on EMU and its seemingly never-ending stream of challenges, past, present and future.

In this summary, you will learn

  • How the European Monetary Union (EMU) came about
  • How early challenges in handling EU members’ fiscal deficits have resulted in changes to its accords
  • How the global financial crisis exacerbated EMU’s problems
  • What impact the Treaty on Stability, Coordination and Governance can have on maintaining EMU
 

Summary

Past Is Prologue
Early in 2013, the euro zone agreed on a treaty – prolixly titled the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union – that capped the debt and spending of its member governments and set penalties for violators. Only the United Kingdom...
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About the Author

Jørgen Mortensen is an associate senior research fellow at the Centre for European Policy Studies and a research fellow at the Centre for Social and Economic Research.


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