European Economic and Monetary Union

EENI- School of International Business

Subject: The Economic and Monetary Union (EMU) of the European Union. Syllabus:

1. Introduction to the Economic and Monetary Union (EMU) of the European Union
2. Historical evolution of the Economic and Monetary Union
3. EU institutions related to the Economic and Monetary Union
   1. The European Central Bank (ECB)
   2. The European System of Central Banks (SEBC)
   3. The Economic and Financial Committee (CEF)
   4. The Eurogroup
   5. The Economic and Financial Affairs Council (ECOFIN)
4. The European Monetary Policy
   1. Price Stability
   2. Open Market Operations
   3. Asset Acquisition Programs
5. Economic Governance in the eurozone
6. Coordination and Monitoring of economic policies
   1. The Stability and Growth Pact
   2. The Budget Pact
7. Macroeconomic Surveillance
   1. The macroeconomic disequilibrium procedure
8. EU Financial Assistance Mechanisms
   1. The European Financial Stabilisation Mechanism: Ireland, Portugal and Greece
   2. The European Financial Stabilisation Facility (EFSF)
   3. The European Stability Mechanism (ESM): Spain, Cyprus and Greece
9. The Banking Union
   1. The Single Supervision Mechanism
   2. The Single Resolution Mechanism

The objectives of the subject “Economic and Monetary Union (EMU) of the EU” are the following:

1. To understand the fundamentals of the European Economic and Monetary Union (EU)
2. To analyse the roles of the five key institutions related to the Economic and Monetary Union
3. To understand the principles of the European Monetary Policy
4. To know the behaviour of the supervision of the Eurozone
5. To evaluate the financial assistance mechanisms of the EU

Sample of the subject - the European Economic and Monetary Union (EU):

Description of the Subject - The Economic and Monetary Union (EMU) of the EU:

The Economic and Monetary Union is one of the pillars of the European Single Market (EU). Since 1 January 1999, when the euro was introduced, the entire monetary policy of the EU is managed by the European Central Bank (ECB).

Each member state of the EU Economic and the Monetary Union must comply with the so-called “Stability and Growth Pact”, which avoids among other things that a country has a high deficit.

The five key institutions are related to the EU's Economic and Monetary Union (EMU):

1. The European Central Bank (ECB)
2. The European System of Central Banks (ESCB). It consists of the European Central Bank and the Central Banks of the EU member states. The main objective is to achieve price stability
3. The Economic and Financial Committee (EFC)
4. The Eurogroup, formed by the Ministers of Economy and Finance of the Eurozone. It is an advisory body
5. The Council of Ministers of Economy and Finance (ECOFIN)

These institutions have the following objectives:

1. Define the monetary policy of the European Union
2. Set the rules for the issue of euros
3. Design strategies of price stabilisation in the market of the Economic Union

Nineteen EU countries have adopted the euro and are therefore part of the eurozone are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Slovakia, Slovenia, Spain, the Netherlands and Portugal.

1. The following countries are not yet part of the Eurozone: Bulgaria, Croatia, Hungary, Poland, the Czech Republic, Romania and Sweden
2. Denmark opted out of the eurozone
3. After the BREXIT, the United Kingdom will no longer belong to the EU (Europe)

The European Economic and Monetary Union (EU) belongs to the European Economic Area of the Western Civilisation.