How we all – consumers and businesses likewise – benefit from the Euro
The European Economic and Monetary Union (EMU) is an outstanding example of successful European integration. Since 1999, as many as 19 countries have been sharing the Euro and benefiting from a stable, internationally significant currency. The elimination of foreign exchange costs and exchange rate fluctuations invigorated trade within the EMU and brought considerable savings for businesses and individuals.
EU reflection paper on monetary union: strengthen the Eurozone
At the end of May 2017, the European Commission published its reflection paper on deepening of the European Economic and Monetary Union (EMU) in which it gave more concrete form and assigned priorities to the proposals in the 2015 Five Presidents’ Report. For German business, a strong and crisis-resistant Eurozone is essential for continuing growth and the creation of secure jobs.
The European Central Bank (ECB) is the central monetary policy force in the European Economic and Monetary Union (EMU). The ECB’s primary duty is to ensure price stability. Using its monetary policy instruments, it aims for a rate of inflation of just under two percent. After that, the ECB’s mandate is to support economic policy in achieving a high rate of employment and lasting growth – as long as this does not jeopardise price stability. In addition, the ECB is responsible for ensuring the smooth operation and stability of Euro payment transactions.
The Five Presidents’ Report on completing Europe’s Economic and Monetary Union
The European Economic and Monetary Union (EMU) and the Euro, Europe’s shared currency, have created growth, prosperity and jobs for the citizens of the EU. However, the crisis and its aftermath have shown that the EMU is in need of fundamental reform. The Five Presidents’ Report published by the European Commission presents comprehensive proposals for completing the EMU.
- In recent years, we have seen a lot of efforts in the fiscal area. However, reforms for the general business environment have fallen short. Can benchmarks like the European Commission's country specific recommendations or the proposals of the Organisation for Economic Co-operation and Development...
- The public had mixed reception on the White Paper on the Future of Europe. Jean-Claude Juncker, President of the European Commission, presented five different scenarios. However, he did not commit himself to one of them. At the third “Econ Jour Fixe” on 7 March 2017, Brussels economists from BDI,...
- European citizens support EU reforms in general, but reject reforms that concern themselves. This was the outcome of the fifth joint workshop of BDI and Konrad-Adenauer-Stiftung on the European Economic and Monetary Union.
Brussels economists expect 1.5 percent of growth in 2017 for the euro area
- Recently, all major international institutions have published their growth forecast for the year 2017. In BDI’s last „Econ Jour Fixe“ on 18 January 2017, representatives of the European Institutions and other organizations concluded a joint forecast of 1.5 percent growth for the euro area.
More national ownership as key for better euro area governance
- Among academics and policy makers, there is a widespread agreement that the governance of the European economic and monetary union (EMU) needs swift and substantial improvements. However, recommendations to increase growth, stability and crisis resilience often point in different directions.