Taking a second look at Germany's motivation to establish economic and monetary union

One of the most widespread explanations of Germany's willingness to create European monetary union is that business or economic interest groups supported and lobbied for it, believing it would be good for them. This article refutes the argument that economic interests were actively involved in the process or that they had a causal impact on the German government's acceptance of EMU. Empirical evidence shows that economic interest groups in Germany were hesitant and sceptical about monetary union, especially since the EMS was working well. Economic interests belatedly mimicked the demands of the Bundesbank that EMU be insulated from political pressure and that price stability be enshrined in the charter, but they did not urge the government to join. Moreover, the members of peak business organisations were themselves divided on the merits of EMU. Thus, this article falsifies the claim that business or economic interests were the driving force behind Kohl's willingness to give up the DM

Argument (complex analysis · Charter · Economic and monetary union · Economic policy · Economic union · Economics · European union · German · Government (linguistics · International trade · Macroeconomics · Monetary policy · Political economy · Political science · Politics · Positive economics · Skepticism · European Union Policy and Governance · Law

• Theorizing national preference formation

  Min-Hyung Kim, Min Hyung Kim•Cambridge Review of International…•2014

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