Euro Zone

European Online Academy CIFE, Berlin ECONOMIC DIMENSION OF EU consolidation - Prof. Jacques LE CACHEUX written by: ISMET LEPAJA How could disintegration of the euro zone be avoided? Introduction the evolution of financial integration With establishment of the European sparing Comm building blocky (EEC) in 1957 by the treaty of Rome, the fiscal integration of Community was not foreseen in any of its provisions, though the Treaty launched the joint market of the Community. At that time the European countries were each(prenominal) members of the international financial system, the Bretton timber which was adopted in 1944 with the manage of the American dollar as the main currency unit and its convertibility into gold which guaranteed the stability of the international economy . However, expansion of the green market brought into question whether the four fundamental freedoms movement of goods, scarperers/establishment, work and capital/payments would b e contactd with continuation of a separate monetary policies of the Member States. The most important moment to converge monetary policies of Member States came at the end of 60s at the time when Bretton timberland showed its first signs of the instability.

It first started with the Hague summit in 1969, when the Head of states and governments of the half-dozen open up Member States agreed to create an economic and monetary coalescency as official goal of the European integration. A charge Werner committee - was created to draft the report on how to achieve this goal. As a first stage of the Werner jut out was reduction of the version margins between Member States currencies to +/-1%, which was meant to be achieved by ! 1980. though the Werner Plan of 1970 did not came to a life as planned, collectible to the dissimilitude of the Member States currencies, the Member States on the initiative of french hot seat Giscard DEstaing and German Chancellor Schmidt, for a European restore exchange rate mechanism project, established the European...If you deprivation to purport a full essay, order it on our website: OrderEssay.net

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