No. 74 - 'Economic and Monetary Union crisis - reasons and existing solutions'

The integration of the European Union (EU) Member States within the framework of the Economic and Monetary Union (EMU), as the forth out of five levels of economic integration developed by B. Balassa, is based on the irrevocable fixing of exchange rates and replacing national currencies with a single currency - the euro (see Balassa 1961). In consequence, the economic policy of the Member States is limited, because the monetary policy is controlled by the supranational institution of the European Central Bank. As a result, the EMU fundamentally represents the highest existing form of economic integration of the EU Member States.