Dossier: «Realities and challenges of the European Union»ISSUE 3 (MAY 2015)

The new Economic and Monetary Union: built to last?

Àlex Ruiz Posino

Counsellor for the Economics and Business Sciences Department at the Open University of Catalonia (UOC)

Abstract

This article seeks to evaluate the institutional changes implemented in recent years to reform the Economic and Monetary Union (EMU). With this aim in sight, it starts with a brief reminder of the institutional structure the EMU was initially given. It then reviews in greater detail the sequence of crises that have blighted the single currency since the major recession in 2008. Particular attention is given to the difficulties encountered by the Eurozone in deactivating the links that created knock-on effects exacerbating three simultaneous crises: in growth, sovereign debt and banking. In this context, the main institutional changes in the EMU are linked to the transmission channels of these three crises. Finally, there is analysis of whether or not these institutional innovations – which in fact constitute a new EMU – improve its future sustainability. The final conclusion is not especially encouraging.

european monetary integration; Economic and Monetary Union; institutional reform; major recession; partnerships for the goals;

ODS

ODS ODS 17

About the author

Àlex Ruiz Posino

Counsellor for the Economics and Business Sciences Department at the Open University of Catalonia (UOC)

aruizpo@uoc.edu

Counsellor for the Economics and Business Sciences Department at the UOC, Associate Professor at the Autonomous University of Barcelona and at the University Abat Oliba-CEU. He holds a Doctoral Degree in Economics from the European University Studies Institute at the Autonomous University of Barcelona, where he also researched issues regarding the economic policy of European monetary integration. He has published works related to the Economic and Monetary Union, European integration, and emerging economies.