Tariffs for chilled boneless beef in the EU will decline from 20 per cent plus ECU 4700 per ton to 12.8 per cent plus ECU 3034 per ton bone in pork legs, from ECU 1215 per ton to ECU 778 per ton boneless chicken cuts from ECU 1600 per ton to ECU 1024 per ton.

There have, of course, been many examples in history in which currency unions or single currency states have broken up. Although there are technical and legal reasons why such a split would be harder for an EMU country, there seems little doubt that a country could withdraw if it really wanted to.

27. The European Union welcomed the establishment by IMF of the Emergency Financing Mechanism and the new arrangements to borrow.

But the euro is no longer a strong common currency that reinforces a shared European identity. On the contrary, it is now a source of deep resentment among European peoples resentment that, 70 years after the end of World War II, was supposed to have been eliminated.

International Monetary Fund

The euro would, however, have to be accepted as legal tender in the UK, alongside the pound, and in the commonwealth countries, and this would demand close cooperation between the Bank of England and the ECB. Such a compromise would increase the EMU s weight both inside and outside Europe.

Europe s Easy Money Endgame

Coupled with all this is northern European discontent with the central bankers, specifically with the ECB and the euro. It is not that the end of European Monetary Union is on the agenda it is merely that people have begun thinking about possible low probability futures in which the end of EMU might be placed on the agenda.

But this reflects a deep misunderstanding of what monetary union means. Monetary union is possible only because of the substantial integration already achieved among European Union countries and sharing a single currency deepens that integration.

Some United Nations organizations located in Europe adopt their budgets in a European currency.

Economic and Monetary Union (EMU)

Juncker s changes, however, may portend genuine progress on this front, as well as toward monetary and energy union. Indeed, the new Commission s structure suggests that Juncker hopes to enhance its role in guiding the European Monetary Union and related policies, control over which largely rested with the European Council and EU member governments (especially Germany) during the crisis.

With its loans to Hungary and Latvia, the European Commission has already revived a credit facility which was dormant since the European Monetary System crisis in 1992 and for countries outside EMU. The support is huge.

Its long term viability requires the development over time of a full banking union, fiscal union, economic union, and eventually political union. But the process of further European integration has stalled.

This tension between Europeans goals and their ability to achieve them is playing out again in the wake of the recent EU summit. Europe s leaders now agree on a vision of what the EU should become an economic and monetary union complemented by a banking union, a fiscal union, and a political union.

But why would the EU fall into chaos and the euro wilt if the Treaty of Nice remains in force. In the area of monetary integration, the European Constitution doesn t change anything, other than the voting procedures in the Governing Council if EMU grows beyond 15 member countries.

Union Économique et Monétaire Ouest Africaine (West African Economic and Monetary Union).

Indeed, the ECB has successfully anchored inflation expectations right from the start at a level consistent with its definition of price stability. This achievement contrasts starkly with all the critical voices that warned against the experiment of European Monetary Union and even predicted its early failure.

EU European Union

GoG Government of Georgia

Stability and Prosperity in Monetary Union

The European Central Bank has played a crucial role in preventing a worst case scenario, but the obvious lacuna in Europe s economic and monetary union (EMU) remains EMU established only a monetary union and largely omitted the economic union that has proven so closely linked to the euro s strengths and weaknesses.

European Union, Delegation of the European Commission

This Group would include the highest officials of the World Bank, the Inter American Development Bank, the International Monetary Fund, the Group of Seven, the European Union and the United Nations.

The proportion of investments in North American currencies was increased to 54 per cent from 48 per cent, in European currencies it was increased to 33 per cent from 30 per cent, and investments in Asian currencies were decreased sharply to 11 per cent from 20 per cent.

The EU needs some fiscal authority of its own if it is to make Europe s economic and monetary union work. It is already a profound peculiarity that customs duties in a customs union are still administered nationally.

The larger issue at stake is whether Europe is prepared to establish the common political space that is needed to manage the monetary union and strengthen the European Union s influence in world affairs.

BRUSSELS The European Union s core countries these days, besides the original six founders, are the 15 member states that make up the European Monetary Union. They have converging economies and coordinated monetary and fiscal policies.

The same applies to extensive government borrowing from abroad, to currency boards, even to currency unions. The creation of the euro is nothing but an extreme form of commitment European governments tried to lash themselves to the German mast of fiscal discipline.

I believed then and still do that European integration is a very good thing. But the textbook economics I was teaching showed how damaging EMU could be in the absence of European fiscal and political union.

The EU s Economic and Monetary Union was a means to an end, not an end in itself. The European electorate seems to have recognized that, under current arrangements, the euro is undermining the very purposes for which it was supposedly created.

Toward a Genuine Economic and Monetary Union?

But it does not follow that the loss would be harmless. There are three reasons why Grexit could still seriously weaken Europe's monetary union.

16. As mentioned in the report of the Secretary General, the United Nations was holding a retention bond and monies of ECU 1.25 million and ECU 250,000, respectively, pending completion of repairs by the contractor.

This was all implicit in the European Union s single market initiative. The eurozone went one step further, aiming through monetary unification to eradicate fully the transaction costs associated with national currencies and exchange rate risk.

But the crisis confronting Europe is not so much about political union as it is about European Economic and Monetary Union. If anything, efforts to hold EMU together may have taken us further from the goal of a common foreign policy by re igniting within member states (regardless of whether they give or receive financial aid) nationalist resentments that we hoped had died long ago.

In this environment, the full economic, banking, fiscal, and political union that a stable monetary union eventually requires is not viable The eurozone core opposes more risk sharing, solidarity, and faster integration. And populist parties of the right and left anti EU, anti euro, anti migrant, anti trade, and anti market are becoming stronger throughout Europe.

European Union

(a) Intergovernmental organizations invited by the Commission African Union, Council of the European Union, European Commission (EC)

In other words, it is not true that the European Union does not constitute a political union. European economic integration in all its aspects reflects the desire to integrate Europe politically, which, at least in my view, implies that European economic and monetary integration is irreversible.

In the 1950 s, the French economist Jacques Rueff, a close adviser to Charles de Gaulle, argued that L Europe se fera par la monnaie, ou ne se fera pas (Europe will be made through the currency, or it will not be made). Germany s President Richard von Weizsäcker echoed this view almost a half century later, declaring that only via a single currency would Europeans achieve a common foreign policy.

Accordingly, his delegation included representatives of the Secretary General, the AU, the Economic Community of West African States (ECOWAS), the European Union, the World Bank and the International Monetary Fund.

Today s financial turmoil and economic downturn are highlighting the EMU s advantages in several important ways. First, the euro has eliminated the possibility of exchange rate turbulence and speculative currency attacks that more vulnerable economies could have expected in the current turmoil.

This is the case of the Council of Europe, the European Union, OSCE and the African Union.

Instead, the vocation of Europe in the course of the twenty first century should be to become the lever of step by step inter continental convergence and unification. Europe must be reinvented for this purpose, and broadening the EMU s reach is the right place to start.