Európska menová únia na prahu nového storočia
EUROPEAN MONETARY UNION AT THE THRESHOLD OF THE NEW CENTURY

Summary/Abstract: In spite of some differences of the followers of various approaches towards monetary integration and in spite of the objection of Euro – sceptics, European Monetary Union entered on the 1st January 1999 its third stage and begun its real functioning. The start of the third stage of EMU was characterised by an irrevocable fixing of exchange rates of EMU members, introduction of EUR for noncash payments and single monetary policy implemented by ECB. Primary objective of the single monetary policy of ECB is to maintain price stability in the euro area. To achieve this objective ECB worked out special strategy of monetary policy, which leans on two pillars. Effective functioning of monetary union assumes the observation of both macro-economic („Maastricht“), as well as micro-economic criteria analysed by the theory of opti-mum monetary area. Fulfilment of fiscal criteria represent a certain problem because fiscal policy remained under the authority of national governments of member countries. The paper analyses the process of fiscal consolidation, which was accelerated along with the approach of the monetary union start. Favourable tendencies in economic and financial development manifested themselves also in those member countries of the EU that did not join EMU on 1st January. Favourable economic development of Greece actually enabled its accession to EMU. Relatively strong opposition against the introduction of EUR occurs however in Denmark and in Great Britain and therefore the paper deals with the arguments of the British opponents of EUR too. Prospects of EMU depend above all on the long-term achievements of the new qual-ity of euro area in competition with the USA and Japan. Main characteristic feature of euro area is the fact that originally small and medium size independent European economies integrated themselves into the qualitatively new economy (megaeconomy) with an extensive internal market. The paper presents data on the economic power of the euro area compared to that of the USA and Japan. At issue are mainly general eco-nomic performance, real GDP growth rate, the sectoral breakdown of GDP, the role in the world trade, the degree of economy openness, the extension and structure of the government sector (especially government budget), labour market and unemployment. The comparison of financial structure of euro area, USA and Japan leads to some very interesting conclusions. Unlike the USA, where financial structure shows many attri-butes of securitised structure, financial structure of euro area can be considered as being close to a bank oriented (e. g. based predominantly on an indirect financing) structure.

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