Europe’s Monetary (Dis)Union
Europe's Progress Toward Economic Integration
New Opportunities and New Challenges
Euro Fantasies: Common Currency as Panacea
The Case for EMU: More than Money
EMU and International Conflict
The Dollar and the Euro
The Degeneration of EMU
The Future of the Euro
Why the Greek Crisis Will Not Ruin Europe’s Monetary Union
The Failure of the Euro
The Little Currency That Couldn’t
The Crisis of Europe
How the Union Came Together and Why It’s Falling Apart
Can Europe’s Divided House Stand?
Separating Fiscal and Monetary Union
Saving the Euro Will Mean Worse Trouble for Europe
Charting the Disastrous Choices Ahead
Can the Eurozone Be Saved?
Yes, but the EU Summit Was Too Little, Too Late
How to Save the Euro -- and the EU
Reading Keynes in Brussels
Why Only Germany Can Fix the Euro
Reading Kindleberger in Berlin
The Myth of German Hegemony
Why Berlin Can't Save Europe Alone
Europe's Optional Catastrophe
The Fate of the Monetary Union Lies in Germany’s Hands
Why the Euro Will Survive
Completing the Continent’s Half-Built House
Avoiding the Next Eurozone Crisis
How to Build an EU that Works
Europe After the Crisis
How to Sustain a Common Currency
Europe's New Normal
It's Here, It's Unclear, Get Used to It
So Long, Austerity?
Syriza's Victory and the Future of the Eurozone
Austerity vs. Democracy in Greece
Europe Crosses the Rubicon
Why Greece Will Cave—and How
Alexis Tsipras and the Debt Negotiations
Why Greece and Europe Will Still Stay Attached
How to Contain Athens' Economic Problems
A Pain in the Athens
Why Greece Isn't to Blame for the Crisis
The Agreekment That Could Break Europe
Euroskeptics, Eurocritics, and Life After the Bailout
For nearly 50 years, Europe has been on a course of ever-widening and -deepening integration. For just as long, Germany has been building a reputation as the global champion of hard money to which the deutsche mark stands as its monument. The proposed monetary union to create a common currency in Europe joins these two strands: Europe gets German monetary integrity, and Germany blends into Europe.
The Maastricht Treaty, concluded in December 1991, is the pre nuptial agreement for this marriage. However, on the way to union doubts loom larger than joy. Still in question are the benefits to be derived, the suitability of the partners, and relations with outside parties. These questions are particularly acrimonious because the tight timetable (see p. 112) for converting to a common currency destroys illusions, as does Europe's poor economic performance. Europe has 18 million unemployed, and no one knows what to do with them. German Chancellor Helmut Kohl, German industry, and German banks all agree that the common currency, provided under the European Monetary Union (EMU) is a must. Promoters of "social union" are equally eager; they see integration as a way to ameliorate an economic system that they regard as having too much competition and too little social justice.
Those who question the drive toward a common European currency include monetary hawks, that is, most of Germany's population and its central Bundesbank; excluded bystanders, such as Central European countries; and benevolent spectators in the United States. The prospective partners in EMU who financially live from hand to mouth -- France, Italy, Spain -- are cheering monetary union. They still believe it is a miracle cure for rotten public finance and generations of debased currency, but they are also wincing as they are weighed in for the race to the Maastricht goal. Meanwhile, Britain is searching its soul. The Labour party wisely is favorably inclined toward the monetary union -- a safe and pragmatic strategy with which to tear the Conservatives apart.
Achievement of a common currency is
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