European Monetary Union

November 27, 1998 • Volume 8, Issue 44
Will it stabilize prices and boost global trade?
By Mary H. Cooper



On Jan. 1, 1999, 11 of the 15 members of the European Union will take a giant stride toward economic integration by adopting a single currency, the euro. Initially, it will be used for non-cash transactions such as stock purchases, but in three years the nations in the new monetary union will begin using euros for all transactions. Supporters of European integration hope that the demise of the mark, the franc and other venerable European currencies will remove a major obstacle to economic unification. Achieving economic integration brings uncertainties and risks, however. The countries involved must cede sovereignty over monetary policy to the new European Central Bank, while the United States must confront a new competitor in the world-trade arena.

ISSUE TRACKER for Related Reports
European Unification
Apr. 05, 2019  European Union at a Crossroads
Dec. 16, 2016  European Union's Future
Jan. 09, 2015  European Unrest
Apr. 17, 2012  Future of the EU
Aug. 2007  The New Europe
Oct. 28, 2005  Future of the European Union
Nov. 27, 1998  European Monetary Union
Jun. 28, 1991  Europe 1992
Jan. 13, 1989  Europe 1992: Danger or Opportunity?
May 11, 1979  Electing Europe's Parliament
Jan. 17, 1973  European Security
Sep. 03, 1969  Benelux Cooperation
Jun. 15, 1966  European Realignment
Sep. 19, 1962  Political Integration of Europe
Mar. 27, 1957  European Economic Union
Jan. 02, 1952  European Unification
Jan. 08, 1951  Defense of Europe
May 21, 1947  Federation of Europe
Nov. 16, 1939  Federal Union and World Peace
Apr. 12, 1933  European Political Alignments
Bilateral and Regional Trade