EURO - THE MAIN PILLAR OF THE EUROPEAN ECONOMIC AND MONETARY UNION

Andreea Grãdinaru () and Mihaela Iavorschi ()
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Andreea Grãdinaru: Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration, Romania
Mihaela Iavorschi: Alexandru Ioan Cuza University of Iasi, Faculty of Economics and Business Administration, Romania

A chapter in EURINT Proceedings 2013, 2013, vol. 1, pp 576-587 from Centre for European Studies, Alexandru Ioan Cuza University

Abstract: The introduction of the euro currency alongside with the foundation of the European Central Bank and the single monetary policy represent the expression of the European economic and monetary integration process. This paper aims to analyse the theoretical basis of the European single currency as the central pillar of the European Monetary Union, the effects carried out by the single currency in the Euro Zone, ending with a comparative study of Estonia which adopted the euro in 2011, and of Romania, a candidate to the EMU. The study is based on statistical data and literature reviews, with a personal perspective on this information. Looking at the adoption of the euro by the countries which carried out the convergence criteria at its both nominal and true value as estimated by the Maastricht Treaty, we notice that it has produced a series of major advantages. Still, the financial crisis pointed out some vulnerabilities of the euro, shaping for and against opinions regarding its survival. The study shows that, theoretically, more integration at a structural, institutional, financial and bank level is needed in order for the EMU to become a proper monetary zone through its single currency which is, at present, the main bond of the Euroland states.

Keywords: Euro Zone; Integration; The European Monetary Union (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:jes:euri13:576-587

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