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16 Cards in this Set
- Front
- Back
What is the EMU?
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umbrella term for group of policies converging the economies of all 17 eurozone states and 10 non-euro states at three stages.
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When was the first attempt to create a EMU?
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1969 - European Commission set out need for 'greater coordination of economic policies and monetary cooperation'
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What set out EMU plan?
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Delors report of 1989 made a plan to introduce EMU in three stages.
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Stage 1 (1 Jan 94 - 31 Dec 98)
European Monetary Institute |
established task of strengthening monetary cooperation between member states and their national banks, aswell as supervising ECU banknotes.
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16 December 1995
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name of new currency (euro) and transition period decided
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16-17 June 1997
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European Council decided to adopt Stability and Growth Pact (SGP) designed to ensure budgetary discipline after creation of the euro and a new exchange rate mechanism (ERM II) is set up to provide stability above the euro and national currencies who had not yet joined the eurozone.
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3 May 1998
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11 initial countries that will participate in the Third Stage from 1998 are selected.
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1 June 1998
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European Central Bank created.
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31 December 1998
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conversion rates between 11 participating national currencies and the euro are established.
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Stage 2 (1 Jan 99 - 31 Dec 01)
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from start of 1999, euro is now a real currency on international markets and a single monetary policy is introduced under authority of ECB. three year transition period begins.
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Stage 3 (1 Jan 02 - present)
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introduction of actual notes and coins, but legally the national currencies have already ceased to exist.
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Jan 02 - notes introduced
Jan 07 - Slovenia joins third stage Jan 08 - Cyprus and Malta |
Jan 09 - Slovakia
Jan 11 - Estonia |
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Stability and Growth Pact (SGP)
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agreement among 27 member states to facilitate and maintain stability of EMU.
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What does SGP consist of?
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- fiscal monitoring of members by European Commission and Council of Ministers.
- the issuing of yearly recommendation for policy actions to ensure a full compliance with the SGP |
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the fiscal discipline - ensuring each member state:
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- stays within limits on government deficit (3% of GDP)
- and debt (60% of GDP) |
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all members are required to submit a SGP report.
what are they called? |
'stability programmes' for eurozone members
'convergence programmes' for non although different names, identical in content. |