This chapter gives an overview of the history of economic and monetary union, starting from the beginning of European exchange rate cooperation in the 1970s up until 2015. Subsequent chapters will cover the events in more detail, according to the specific issue area (monetary, financial, fiscal or economic integration) or actors (ECB, non-euro area countries, etc.). It begins with a consideration of exchange rate cooperation in Europe, starting with the Bretton Woods system, the Snake, and its successor, the European Monetary System (EMS). The success of the EMS in stabilizing exchange rate fluctuations and lowering interest rates contributed to the decision to create a single currency, the euro. During its first decade the new currency thrived, but the global financial crisis revealed its underlying weaknesses that were further exposed by the subsequent sovereign debt crisis. Therefore EMU (Economic and Monetary Union) 2.0 saw an expanded role for the ECB, the creation of a bailout fund (ESM, the European Stability Mechanism), banking union, tighter fiscal cooperation and more economic policy cooperation. The policies and institutions of EMU are further described in later chapters.
Swipe to navigate through the chapters of this book
Please log in to get access to this content
To get access to this content you need the following product:
- History of Economic and Monetary Union
- Macmillan Education UK
- Sequence number
- Chapter number