The Fiscal Convergence Criteria As A Potential Catalyst For The Failure Of The EMU Cover Image

Фискални критеријуми конвергенције као потенцијални катализатор неуспеха ЕМУ
The Fiscal Convergence Criteria As A Potential Catalyst For The Failure Of The EMU

Author(s): Srđan Furtula
Subject(s): Economy
Published by: Универзитет у Нишу
Keywords: European Monetary Union; monetary integration; euro; convergence criteria; GDP

Summary/Abstract: When established, the EMU was defined as a homogeneous economic zone and as a single economic entity, which will in addition have a single monetary policy and the euro single currency. The precondition for entry, in addition to qualitative criteria from Copenhagen, were the quantitative criteria of the Maastricht Treaty, known as convergence criteria аre precisely and quantitative defined conditions of entry. However, meeting the convergence criteria, does not mean real economic per-formance, because some of the state in order to access quickly, “strain” their macro-economic performance and rigid monetary policy and uncoordinated fiscal policies can later threaten the functioning of EMU. Also, the state have the biggest problem in meeting the fiscal convergence criteria, which are not clearly focused national fiscal policies in line with the single monetary policy, before and after access. This is espe-cially important because it includes heterogeneous EMU countries with different eco-nomic and financial structure. A key problem in the functioning of EMU is whether non-compliance with fical criteria of convergence in some EMU countries have the same impact on the threat to the survival of EMU.

  • Issue Year: 2011
  • Issue No: 01
  • Page Range: 209-225
  • Page Count: 17
  • Language: Serbian