European Monetary Union - a quantum leap

Abstract

The main statements contained in this paper can be summed up as follows:

1. The single market created a supranational economic area. It is only logical from an economic point of view that the single market should also give rise to a single currency.

2. In order to improve Europe's competitive position vis-à-vis Japan and the USA, the dollar must be rivalled by a European currency having equivalent clout.

3. The convergence criteria are economically justified. Stable prices, low interest rates, the reduction of dramatically inflated national debts and the elimination of competitive devaluations stimulate investment, jobs and growth.

4. The European Central Bank will assume the status of a European monetary government. If an equal effort is to be made to achieve employment and social policy objectives, then an economic government and a social government are also required.

5. The task of an economic government, in the form of a harmonised economic policy for the EU Member States, is to promote job-creating investment in new technologies and modern infrastructure projects.

6. The task of a social government, in the form of Union-wide coordinated trade union representation, is to safeguard social standards, participation rights and wage claims.

7. Only the trio of Monetary, Employment and Social Union make sense and entail genuine legitimacy.

8. In the light of the ongoing trend towards globalisation, the cost of failure and the associated re-establishment of putatively wholly sovereign nation states would be counter-productive for all countries in Europe.