Introduction. Enlargement brings the prospect of important changes to the economic and political priorities of Economic and Monetary Union (EMU).
This chapter covers key aspects of EMU, especially as they rate to enlargement. A central focus of the chapter is the ways in which accession countries may alter the economic priorities, institutional design and policy outcomes within an expanded monetary union.
Who Monetary Union? The Political Economy of Monetary Integration. In 1999,11 states became founding members of monetary union, and Greece joined them to become the twelfth EMU member in 2001.
The accession countries were given no option in the accession negotiations but to accept that in due course, though not immediately on accession.
EMU membership is seen as providing substantial benefits, including reduced exchange rate risk, lower transaction costs and lower interest rates.
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