Skip to main content

European Monetary Integration

  • 282 Accesses

Abstract

This chapter analyzes the process of monetary integration in Europe between 1945 and 1992, when the Treaty of Maastricht introduced the euro as the single currency of most member states of the European Union (EU). It introduces the main theories used in dealing with the monetary integration of Europe and provides the institutional and global context in which the discussions took place. It analyzes the different types of monetary integration that Europe used and debated, including the use of the unit of account, the debate over the introduction of a parallel currency, the exchange rate coordination, and the creation of a single currency. It finally presents the different phases of the creation of the euro.

Keywords

  • European Unit of Account (EUA)
  • Exchange Rate Mechanism (ERM)
  • European Monetary System (EMS)
  • European Currency Unit (ECU)
  • Parallel currency
  • Euro

Research supporting this chapter has received funding from the European Research Council (ERC) under the European Union’s Horizon 2020 research and innovation programme (grant agreement No. 716849), project EURECON: The Making of a Lopsided Union, Economic Integration in the European Economic Community, 1957–1992. This chapter was written while the author was Jean Monnet Fellow at the European University Institute’s Robert Schuman Centre.

This is a preview of subscription content, access via your institution.

References

  • ‘The All Saints’ Day Manifesto for European Monetary Union’. The Economist, 1 November 1975

    Google Scholar 

  • Claeys G (2017) The missing pieces of the euro architecture. Bruegel Policy Contribution No. 28, October 2017

    Google Scholar 

  • Cohen-Setton J (2015) The economics of parallel currencies. Bruegel blog post. http://bruegel.org/2015/06/the-economics-of-parallel-currencies/. Accessed 31 July 2018

  • Commission of the European Communities, Directorate-General for Economic and Financial Affairs, One market, one money. An evaluation of the potential benefits and costs of forming an economic and monetary union, n° 44, October 1990

    Google Scholar 

  • Cooper R (2006) Almost a Century of Central Bank Cooperation. BIS working papers, n° 198, February 2006

    Google Scholar 

  • Council of Ministers, Resolution on the achievement by stages of economic and monetary union in the Community, 22 March 1971

    Google Scholar 

  • Council Decision 75/250/EEC of 21 April 1975 on the definition and conversion of the European unit of account used for expressing the amounts of aid mentioned in Article 42 of the ACP-EEC convention of Lomé

    Google Scholar 

  • Danescu E, Muñoz S (eds) (2015) Pierre Werner et l’Europe : pensée, action, enseignements/Pierre Werner and Europe : his approach, action, and legacy. Peter Lang, Brussels

    Google Scholar 

  • de Grauwe P (2013) Design failures in the Eurozone: can they be fixed? European Economy, Economic papers 491, April 2013

    Google Scholar 

  • Duchaussoy V (2011) La Banque de France et l’Etat, de Giscard a Mitterrand: enjeux de pouvoir ou resurgence du mur d’argent? 1978–1984. L’Harmattan, Paris

    Google Scholar 

  • Duisenberg W (2002) Acceptance speech of the International Charlemagne Prize for 2002, 9 May 2002. Available at https://www.ecb.europa.eu/press/key/date/2002/html/sp020509.en.html

  • Dyson K, Featherstone K (1999) The road to Maastricht: negotiating economic and Monetary Union. Oxford University Press, Oxford

    CrossRef  Google Scholar 

  • Dyson K, Maes I (eds) (2016) Architects of the Euro: intellectuals in the making of European Monetary Union. Oxford University Press, Oxford

    Google Scholar 

  • Eichengreen B (1993) Reconstructing Europe’s trade and payments: the European Payments Union. Manchester University Press, Manchester

    Google Scholar 

  • Eichengreen B (ed) (1995) Europe’s postwar recovery. Cambridge University Press, Cambridge

    Google Scholar 

  • Feiertag O (2016) Les banques centrales et les États dans la crise de change de 1992–1993: le baptême de la monnaie unique. In: Feiertag O, Margairaz M (eds) Les banques centrales et l’État-nation/The central banks and the nation state. Les Presses de Sciences Po, Paris, pp 617–644

    Google Scholar 

  • Ferguson N (2009) Siegmund Warburg, the City of London and the financial roots of European integration. Bus Hist 51(3):364–382

    CrossRef  Google Scholar 

  • Fleming M (1971) On exchange rate unification. Financ Anal J 20(1):1102–1103

    Google Scholar 

  • Grygowski D (2009) Les États-Unis et l’unification monétaire de l’Europe. Peter Lang, Brussels

    Google Scholar 

  • Haberler G (1970) The international monetary system: some developments and discussions. In: Halm GN (ed) Approaches to greater flexibility of exchange rates. Princeton University Press, Princeton, pp 115–123

    Google Scholar 

  • Ingram J (1969) Comment: the optimum currency problem. In: Mundell R, Swoboda A (eds) Monetary problems of the international economy. Chicago University Press, Chicago, pp 95–100

    Google Scholar 

  • James H (2012) Making the European Monetary Union: the role of the Committee of Central Bank Governors and the origins of the European Central Bank. Harvard University Press, Cambridge, MA

    CrossRef  Google Scholar 

  • Kenen P (1969) The theory of optimum currency areas: an eclectic view. In: Mundell R, Swoboda A (eds) Monetary problems of the international economy. Chicago University Press, Chicago, pp 41–60

    Google Scholar 

  • Kindleberger CP (1986) International public goods without international government. Am Econ Rev 76(1):1–13

    Google Scholar 

  • Knapp GF (1924) The state theory of money. Macmillan, London

    Google Scholar 

  • Marsh D (2009) The Euro: the politics of the new global currency. Yale University Press, New Haven

    Google Scholar 

  • McKinnon R (1963) Optimal currency areas. Am Econ Rev 53:717–724

    Google Scholar 

  • McNamara KR (1998) The currency of ideas: monetary politics in the European Union. Cornell University Press, Ithaca

    Google Scholar 

  • Mourlon-Druol E (2010) Filling the EEC leadership vacuum? The creation of the European Council in 1974. Cold War Hist 10(3):315–339

    CrossRef  Google Scholar 

  • Mourlon-Druol E (2012) A Europe made of money: the emergence of the European monetary system. Cornell University Press, Ithaca

    CrossRef  Google Scholar 

  • Mourlon-Druol E (2014) Don’t blame the Euro: historical reflections on the roots of the Eurocrisis. West Eur Polit 37:1282–1296

    CrossRef  Google Scholar 

  • Mourlon-Druol E (2016) Steering Europe: explaining the rise of the European Council, 1975–1986. Contemp Eur Hist 25(3):409–437

    CrossRef  Google Scholar 

  • Mourlon-Druol E (2018) History of economic and monetary union. In: Amtenbrink F, Hermann C (eds) The EU law of economic and monetary union. Oxford University Press, Oxford

    Google Scholar 

  • Mundell R (1961) A theory of optimum currency areas. Am Econ Rev 51(4):657–665

    Google Scholar 

  • Padoa-Schioppa T (1994) The road to monetary union in Europe: the emperor, the kings, and the genies. Oxford University Press, Oxford

    Google Scholar 

  • Protocol No. 13 on the convergence criteria, Official Journal of the European Union, C83, 30 March 2010

    Google Scholar 

  • Rose A (1999) One Money, One Market: Estimating the Effect of Common Currencies on Trade, NBER Working Paper No. 7432

    Google Scholar 

  • Sandbu M (2015) Europe’s orphan: the future of the Euro and the politics of debt. Princeton University Press, Princeton

    CrossRef  Google Scholar 

  • The Optica Report 1975 (1976) Towards economic equilibrium and monetary unification in Europe. Commission of the European Communities, Brussels

    Google Scholar 

  • The Optica report 1976 (1977) Inflation and exchange rates: evidence and policy guidelines for the European Community. Commission of the European Communities, Brussels

    Google Scholar 

  • Ungerer H (1997) A concise history of European monetary integration, from EPU to EMU. Quorum Books, Westport

    Google Scholar 

  • Werner P (1970) Report to the Council and the Commission on the realisation by stages of economic and monetary union in the Community. Available at http://ec.europa.eu/economy_finance/emu_history/documentation/chapter5/19701008en72realisationbystage.pdf

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Emmanuel Mourlon-Druol .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and Permissions

Copyright information

© 2018 Springer Nature Singapore Pte Ltd.

About this entry

Verify currency and authenticity via CrossMark

Cite this entry

Mourlon-Druol, E. (2018). European Monetary Integration. In: Battilossi, S., Cassis, Y., Yago, K. (eds) Handbook of the History of Money and Currency. Springer, Singapore. https://doi.org/10.1007/978-981-10-0622-7_26-1

Download citation

  • DOI: https://doi.org/10.1007/978-981-10-0622-7_26-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-10-0622-7

  • Online ISBN: 978-981-10-0622-7

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social Sciences