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European integration and the ‘euro project’

In: The Handbook of Globalisation, Third Edition

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  • Philip Arestis
  • Malcolm Sawyer

Abstract

This chapter examines the extent to which the euro – which was introduced as a ‘virtual’ currency in January 1999 and then as a ‘real’ currency in January 2002 – has been successful. The effective countdown to the single currency started with the signing of the Maastricht Treaty. The convergence criteria, which were to determine whether a national currency would join the single currency, provide some insights into the nature of the euro project and are discussed. Also discussed is the introduction of the euro, which was accompanied by the adoption of the Stability and Growth Pact (SGP) with its constraints on fiscal policy. The ordo-liberal nature of the European Monetary Union (EMU) and its policy framework constitute important contributions to the neo-liberal theoretical and policy framework and are discussed in the chapter. This is followed by some reflections on the impact of the framework on inflation and unemployment. This chapter concludes with a discussion of the relatively poor economic performance under the euro and the major issues that are now emerging.

Suggested Citation

  • Philip Arestis & Malcolm Sawyer, 2019. "European integration and the ‘euro project’," Chapters, in: Jonathan Michie (ed.), The Handbook of Globalisation, Third Edition, chapter 15, pages 262-271, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18293_15
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    References listed on IDEAS

    as
    1. Philip Arestis & Malcolm Sawyer, 2002. "Can Monetary Policy Affect The Real Economy?," Macroeconomics 0209012, University Library of Munich, Germany.
    2. Sawyer, Malcolm (ed.), 2004. "The UK Economy," OUP Catalogue, Oxford University Press, edition 16, number 9780199266517.
    3. Willem F. Duisenberg, 1999. "Economic and monetary union in Europe : the challenges ahead," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 185-194.
    4. Philip Arestis & Malcolm Sawyer, 2003. "Macroeconomic Policies of the Economic Monetary Union: Theoretical Underpinnings and Challenges," Economics Working Paper Archive wp_385, Levy Economics Institute.
    5. Arestis, Philip & McCauley, Kevin & Sawyer, Malcolm, 2001. "An Alternative Stability Pact for the European Union," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 25(1), pages 113-130, January.
    6. Philip Arestis & Malcolm Sawyer (ed.), 2004. "Neo-Liberal Economic Policy," Books, Edward Elgar Publishing, number 3393.
    7. Philip Arestis & Malcolm Sawyer, 2008. "A critical reconsideration of the foundations of monetary policy in the new consensus macroeconomics framework," Cambridge Journal of Economics, Oxford University Press, vol. 32(5), pages 761-779, September.
    8. Philip Arestis & Malcolm Sawyer, 2004. "Macroeconomic policies of the Economic and Monetary Union: theoretical underpinnings and challenges," Chapters, in: Philip Arestis & Malcolm Sawyer (ed.), Neo-Liberal Economic Policy, chapter 7, Edward Elgar Publishing.
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