3.3. Maastricht Treaty

Formation of the European Monetary Union

Questions about establishing the European Monetary System was raised at a meeting in The Hague in December 1969. In October 1970 the concept of transition to a common currency union was formulated in the so-called "Werner Plan. Under this "plan", a common monetary system would become irreversible introduction of mutual convertibility of national currencies.

However, "Werner Plan" did not succeed mainly because of the time in the European Economic Community, have not formed a common market with free resource of products, services, capital and labor.

In 1972 he introduced a system of coherent fluctuations in currency countries intehrantiv bounded by the narrow scope of the U.S. dollar - "snake in the tunnel system. In 1975 the system of international payments intehrantamy countries, based on budget and operations of the European Investment Bank introduces single unit of account - yero.

Steps to the European Monetary Union

1969-1970

Hague

"Werner Plan - irreversible mutual convertibility of national currencies

1972

European "snake in the tunnel system"

1975

The only European Accounting unit - yero

1978-1979

Brussels

EMS

based ECU

1988

"Delors Plan" -

towards creation of the ECB, the transition to a single European currency

1991, 1992, 1993

Maastricht

Course on creating EMU

Finally, at the next European Council summit held in Brussels in December 1978, adopted decision to establish a European Monetary System. From March 1979 this system begins to act on the basis of the Accounting unit - ECU.

In 1988, the Foreign Minister of Germany G. Genscher proposed memorandum on establishment of European Monetary Area and the European Central Bank. The Memorandum was

supported by the then Chairman of the European Communities

Jacques Delors and later transformed into the so-called "Delors Plan".

By "Delors Plan" provides for a coordinated economic and monetary policy of the EU, a European Central Bank, the transition to a single European currency. The plan was taken as the basis for the European Monetary Union and endorsed by the European Council in June 1988 in Madrid, and its main provisions were later enshrined in the Maastricht Treaty.

Treaty on European Union was approved by the European Council session in December 1991 in Maastricht (Netherlands). In February 1992 the Treaty was signed in November 1993 - came into force. With the adoption of the Maastricht Treaty western European integration process rose to a new level: an economic and monetary union, forming a political union.

After the signature of the EU actually gone to the implementation of joint economic and financial policies with the ultimate goal of which was to be the introduction of a single currency system based on the euro.

Monetary union could only state with a well-managed economy. Therefore, countries should have intehranty make appropriate efforts to ensure a high level of convergence.

Readiness of each country to "monetary integration '" defined the criteria that were set in the Maastricht Treaty and called the five Maastricht criteria:

1. Inflation should not exceed the average inflation of three countries with the lowest level for more than 1,5%.

2. Long-term interest rates should not exceed more than 2% rate of long-term interest rates three states with the least to their level.

3. The national currency should not devalvuvatysya past two years and should remain within the fluctuations in the level of ± 2,25%, provided the European Monetary System.

4. Government deficit must not exceed 3% of GDP.

5. Public debt should be no higher than 60% of GDP.

Maastricht criteria are reliable means of ensuring a stable macroeconomic environment and an objective basis for making policy decisions. Countries that did not provide the appropriate level of convergence had the opportunity to join the monetary union later, in line with the differential rates of integration.

In March 1998, the European Commission identified the "euro zone" of 11 countries that have successfully implemented the stabilization of public finances in accordance with the Maastricht criteria and are willing to join EMU: Austria, Belgium, Ireland, Italy, Spain, Luxembourg, Germany, Netherlands, Portugal, Finland, France. Outside the euro area "remained: Greece, the economy is not sufficiently meet the criteria of Maastricht, W. Britain, Denmark, Sweden - mainly for political reasons.

Plans, terms of economic and monetary integration and the formation of a single currency system, set the Maastricht Treaty, is constantly corrected, utochnyuvalys and the final stage were used in three phases - phase.

Thus, the introduction of cashless euro January 1, 1999 accompanied the transition to the new currency banking and financial sectors, issue new loans in euros, printing banknotes and minting of coins to euros.

From 1 January 2002 to July 1, 2002 anticipated the introduction of euro cash, putting into circulation of banknotes and coins a new currency, the final transition to the euro of public administration. In this way, the euro became the sole legitimate means of payment throughout 12 member countries of the European Economic and Monetary Union.

Go to the new currency has not created significant problems for large-scale multinational corporations that operate in several currencies. For small and medium-sized businesses that work with one currency, the transition was somewhat difficult. But no company could completely switch to the euro, while the public sector and consumers to use national currencies.

Yet the perception of the euro as the new common currency in some countries intehrantah was and remains controversial. At the regional level is observed in Germany, Italy, Spain, in some other countries yevrosoyuznyh. Governments are not all countries intehrantiv able to fully ensure compliance with Maastricht criteria. Enough remains cautious attitude to the European currency and the euro from the governments of countries that gained EU membership after 2004.

Control questions and practical tasks

1. What factors caused by economic and political integration in Western Europe?

2. Identify the economic content of the European Coal and Steel.

3. Identify the value of the Rome Treaty for the development of economic and political integration in Western Europe.

4. What meant for Western Europe adopt a single European Act?

5. What was the main stages of Western European integration process?

6. What is the political nature of Western European integration?

7. What is the institutional and political system of the EU?

8. What is apparent peculiarities of functioning of the European Union?

9. What is the role played in the Maastricht Treaty establishing the European Monetary Union?

10. What indicators characterized the EU-15 place in WFP?

11. What is becoming apparent features Yevrolendu?

12. What apparent problems of EU enlargement?

13. Give the place of the EU-27 economic links in the system.

Lecture 4: Post-socialist countries of Central and Eastern Europe in the European integration process.

4.1. Integration trends in post-socialist countries of Central and Eastern Europe. 4.2. Strategy of EU integration.

4.3. Features of the integration of post-socialist countries of Central and Eastern Europe into the European Union. 4.4. Problems integrating cooperation within the European Union.