Making EMU a success

One year has elapsed since the European Monetary Union was created between eleven of the fifteen European Union member states. During 1999 the economic prospects for euroland have dramatically improved, with projected growth in 2000 and 2001 well above earlier expectations. This article argues that the recovery, by itself, cannot solve Europe's unemployment problem, neither can monetary union per se, despite its substantial benefits. The authors discuss these benefits and assess the current economic situation in Europe. They recommend a bold, coordinated approach, a growth pact for Europe, based on the three complementary legs: substantial tax cuts; an accommodating monetary policy; and structural reform. They discuss the conditions in which such a pact would be successful

Economic and monetary union · Economic policy · Economic recovery · Economics · European monetary union · European union · International economics · Macroeconomics · Member states · Monetary policy · Pact · Political science · Stability and Growth Pact · Unemployment · European Monetary and Fiscal Policies · Global Financial Crisis and Policies · Regional Development and Policy