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The European Union Before and After the Euro: An Assessment of the Maastricht Convergence Criteria

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  • Afxentiou , Panos

    ()
    (University of Calgary, Department of Economics)

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    Abstract

    The Maastricht Treaty established convergence criteria designed to facilitate the introduction of a single currency in the European Union. Since very few of the 1 5 members are expected to satisfy all the prescribed criteria, it is anticipated that a loose interpretation of satisfaction will allow as much inclusivity as possible. After the euro and the loss of monetary independence, unemployment and regional disparities, which are unlikely to be solved by labour mobility, must be fought at the country level with fiscal policies. The limited degree of fiscal freedom enjoyed by individual members will strain somehow the spirit of unit3; but progress on social integration will make possible the necessary compromises across the community even at the time that small government is the call of the day.

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    Bibliographic Info

    Article provided by Camera di Commercio di Genova in its journal Economia Internazionale / International Economics.

    Volume (Year): 51 (1998)
    Issue (Month): 1 ()
    Pages: 1-14

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    Handle: RePEc:ris:ecoint:0311

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