European Economic and Monetary Union: 20 Years After

451
DOI: 10.20542/0131-2227-2019-63-9-76-85

V. Pishchik (pv915@mail.ru),
Financial University under the Government of the Russian Federation, 49, Leningradskii Prosp., Moscow, 125993, Russian Federation;
А. Kuznetsov (kuznetsov0572@mail.ru),
Financial University under the Government of the Russian Federation, 49, Leningradskii Prosp., Moscow, 125993, Russian Federation;
P. Alekseev (apv31@mail.ru),
Financial University under the Government of the Russian Federation, 49, Leningradskii Prosp., Moscow, 125993, Russian Federation 



Abstract

The authors identify structural and institutional problems of the European EMU that significantly aggravated after the global financial and economic crisis of 2008–2009, evaluate new approaches to the reform of EMU, reveal the main directions of action by the EU authorities to overcome its systemic crisis. The proposed classification of anticrisis measures in the post-2015 period includes: a) updated conceptual approaches of the ECB’s leadership to the strategy of a single monetary policy with an assessment of the results of its implementation; b) conceptual approaches and practical measures for structural reforms in EMU for the period from 2015 to 2025; and b) an action plan to strengthen the international role of the euro. Despite the EU’s ambitious goals, the euro could not outcompete the US dollar in the global monetary system. The stagnation of the international position of the euro is due to the dominant role of the US dollar in commodity markets, as well as its key role in the international lending and foreign exchange markets. Although London is part of the EU, its globally oriented financial markets are more closely linked to New York than to Frankfurt and Paris. A UK exit from the EU could negatively affect the Eurozone’s global competitiveness and significantly narrow the EU’s ability to attract financial resources on international capital markets. The risks of EU destabilization are also magnified by huge euro-denominated financial obligations cleared through London. In December 2018 the European Commission pushed a number of initiatives to strengthen the international role of the euro, including the completion of the Banking Union and the EU Capital Markets Union. However, as the experience of previous years shows, the EU countries do not demonstrate the necessary coherence to achieve their goals. The deterioration of the EU’s relations with the United States and Brexit are additional factors for the uncertainty of the further development of European integration processes in the monetary and financial sphere. The conclusion is made about the strategic and practical significance of the concept of a renewed consolidated EMU, implemented in order to level the accumulated internal and external imbalances in the euro area, and the transition to a model of sustainable economic growth in the region. The prospects of the European Union largely depend on the efficiency and adequacy of the measures taken by the EU authorities to neutralize new challenges and risks, resolve problems of economic integration, put into practice structural and institutional reform programs. 


Keywords

European Economic and Monetary Union, single European currency, euro, ECB, unconventional monetary policy, structural reforms of EMU, international role of euro, European financial market, clearing, Brexit, City of London 


REFERENCES

1. Preparing for Next Steps on Better Economic Governance in the Euro Area. Informal European Council, Analytical Note. 12 February 2015. Available at: https://ec.europa.eu/commission/sites/beta-political/files/analytical_note_en.pdf (accessed 04.03.2019).

2. Juncker J.-C., Tusk D., Dijsselbloem J., Draghi M., Schulz M. Completing Europe’s Economic and Monetary Union, 2015. Available at: https://ec.europa.eu/commission/sites/beta-political/files/5-presidents-report_en.pdf (accessed 04.03.2019).

3. Veron N., Wolf G. B. Capital Market Union: A Vision for the Long Term. Bruegel Policy Contribution, Issue 2015/05, April 2015. Available at: http://bruegel.org/2015/04/capital-markets-union-a-vision-for-the-long-term/ (accessed 04.03.2019).

4. EIB Group Figures. As of 11/12/2018. Available at: https://ec.europa.eu/commission/priorities/jobs-growth-and-investment/investment-plan-europe-juncker-plan/investment-plan-results_en (accessed 04.03.2019).

5. Eichengreen B. The euro’s Global Dreams and Nightmares. Centre for European Policy Studies, 08.01.2019. Available at: http://aei.pitt.edu/97032/1/BE_Euro_global_dreams.pdf (accessed 02.03.2019).

6. Tavlas G. S. The International Use of Currencies: the U. S. Dollar and the Euro. Finance & Dvelopment, 1998, vol. 25, no. 2. Available at: https://www.imf.org/external/pubs/ft/fandd/1998/06/tavlas.htm (accessed 03.03.2019).

7. RMB internationalisation: Where We are and What We Can Expect in 2018. SWIFT.13.02.2018. Available at: https://www.cfoinnovation.com/management/rmb-internationalisation-where-we-are-and-what-we-can-expect-2018 (accessed 02.03.2019).

8. Towards a Stronger International Role of the Euro. Commission Contribution to the European Council and the Euro Summit (13–14 December 2018). Available at: https://ec.europa.eu/commission/publications/towards-stronger-internationalrole-euro-commission-contribution-european-council-13-14-december-2018_en (accessed 02.03.2019).

9. Triennial Central Bank Survey: Foreign Exchange Turnover in April 2016. Bank for International Settlements. Available at: https://www.bis.org/publ/rpfx16fx.pdf (accessed 02.03.2019).

10. The International Role of the Euro. European Central Bank. Interim Report, June 2018. Available at: https://www.ecb.europa.eu/pub/pdf/ire/ecb.ire201806.en.pdf (accessed 02.03.2019).

11. Maggiori M., Neiman B., Schreger J. The Rise of the Dollar and Fall of the Euro as International Currencies. NBER Working Paper, no 25410, December 2018. Available at: http://www.nber.org/papers/w25410 (accessed 02.03.2019).

12. McCauley R.N., Benetrix A.S., McGuire P.M. and Goetz von Peter. Financial Deglobalisation in Banking? BIS Working Paper, no 650, June 2017. Available at: https://www.bis.org/publ/work650.pdf (accessed 02.03.2019).

13. Gros D. The Mirrage of a Global Euro. Project Syndicate. 2019. Available at: https://www.project-syndicate.org/commentary/euro-dollar-global-reserve-currency-by-daniel-gros-2019-02 (accessed 02.03.2019).

14. The international Role of the Euro. ECB. July 2017. Available at: https://www.ecb.europa.eu/pub/pdf/other/ecb.euro-international-role-201707.pdf (accessed 02.03.2019).

15. Annual Report on Exchange Arrangements and Exchange Restrictions 2017. IMF. Available at: https://www.imf.org/en/Publications/Annual-Report-on-Exchange-Arrangements-and-Exchange-Restrictions/Issues/2018/08/10/Annual-Reporton-Exchange-Arrangements-and-Exchange-Restrictions-2017-44930 (accessed 02.03.2019).

16. Ilzetzki E., Reinhart C.M., Rogoff K.S. Exchange Arrangements Entering the 21st Century: Which Anchor Will Hold? NBER Working Paper, no 23134, February 2017. Available at: http://www.nber.org/papers/w23134 (accessed 02.03.2019).

17. Wir lassen nicht zu, dass die USA uber unsere Kopfe hinweg handeln. Handelsblatt, 21.08.2018. Available at: https://www.handelsblatt.com/meinung/gastbeitraege/gastkommentar-wir-lassen-nicht-zu-dass-die-usa-ueber-unsere-koepfe-hinweg-handeln/22933006.html (accessed 02/03/2019).

18. The State of the Union 2018, the Hour of European Sovereignty. 13.09.2018. Available at: https://eeas.europa.eu/delegations/russia/50422/state-union-2018-hour-european-sovereignty_en (accessed 02.03.2019).

19. Towards a Stronger International Role of the Euro. (2018). Communication from the Commission to the European Parliament, the European Council (Euro Summit), the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions. European Commission. Brussels, 05.12.2018, COM (2018) 796 final. Available at: https://ec.europa.eu/info/sites/info/files/com-2018-796-communication_en.pdf (accessed 02.03.2019).

20. UK Balance of Payments, The Pink Book: 2018. Office for National Statistics. Available at: https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/bulletins/unitedkingdombalanceofpaymentsthepinkbook/2018 (accessed 02.03.2019).

21. Schildbach J., Lekhani R., Kaya O. Brexit Impact on Investment Banking in Europe. Deutsche Bank Research, EU Monitor, July 2, 2018. Available at: https://www.dbresearch.com/PROD/RPS_EN-PROD/Brexit_impact_on_investment_banking_in_Europe/RPS_EN_DOC_VIEW.calias?rwnode=PROD0000000000435631&ProdCollection=PROD0000000000469527 (accessed 02.03.2019).

22. Boffey D. EU Will Lose out from Bad Brexit Deal on City, Says Leaked Report. The Guardian, 1 Feb 2017. Available at: https://www.theguardian.com/business/2017/feb/01/eu-brexit-deal-city-leaked-report-european-parliament-article-50 (accessed 02.03.2019).

23. The Economic Consequences of Leaving the EU. The final report of the CER commission on Brexit 2016. Centre for European Reform, April 2016. Available at: https://cer.eu/sites/default/files/smc2016_26april2016.pdf (accessed 02.03.2019).

24. Fidelio T. Client-proximity-based Spatial Clustering of European Corporate and Investment Banking after a Hard Brexit. Finance Research Letters, 2018, vol. 27, no. 12, pp. 241-246. Available at: https://doi.org/10.1016/j.frl.2018.03.015 (accessed 02.03.2019).

25. Lavery S., McDaniel S., Schmid D. New Geographies of European Financial Competition? Frankfurt, Paris and the Political Economy of Brexit. Geoforum, 2018, vol. 94, no. 8, pp. 72-81. Available at: https://doi.org/10.1016/j.geoforum.2018.03.021 (accessed 02.03.2019).

26. Hall S., Wojcik D. ‘Ground Zero’ of Brexit: London as an International Financial Centre. Geoforum, 2018. Available at: https://doi.org/10.1016/j.geoforum.2018.02.002 (accessed 02.03.2019).

27. Dorry S. The Geo-Politics of Brexit, the Euro and the City of London. Geoforum, 2017, vol. 85, no. 10, pp. 1-4. Available at: http://dx.doi.org/10.1016/j.geoforum.2017.07.003 (accessed 02.03.2019).

28. EU Regulator to Recognise three UK Clearing Houses in the Event of a No-deal Brexit. TheCityUK, 2019. Available at: https://www.thecityuk.com/news/eu-regulator-to-recognise-three-uk-clearing-houses-in-the-event-of-a-nodeal-brexit/?utm_campaign=10313293_CEOs%20Newsletter%20-%20March%202019&utm_medium=email&utm_source=TheCityUK&dm_i=J8I,651SD,4RFU0R, O51YM,1 (accessed 02.03.2019). 


Registered in system SCIENCE INDEX

For citation:
Pishchik V., Kuznetsov A., Alekseev P. European Economic and Monetary Union: 20 Years After. Mirovaya ekonomika i mezhdunarodnye otnosheniya, 2019, vol. 63, No 9, pp. 76-85. https://doi.org/10.20542/0131-2227-2019-63-9-76-85



Comments (0)

No comments

Add comment







Indexed
 
Current Issue
2020, vol. 64, No. 9

Topical Themes of the Issue:

  • World Energy after the Pandemic
  • Developing Countries in the Political Economy of the Post-Coronavirus World
  • The Prospects for Settlement of North Korean Nuclear Problem in View of the Presidential Elections in the USA 
  • EU Single Financial Market: Illusion or Reality?
  • Consequences of the Civil War in Syria and Ways of Overcoming Them
View This Issue (2020, vol. 64, No. 9)
Submit an Article

Dear readers!
Please note that free access to full-text issues of the Journal is being opened at our WEB-site after 6 months of the date of publications. Currently, the releases of 2015–2018 are available for free. The work on deepening the open archive of full-text issues will be continued.

Dear readers!
This is to inform the researchers of the Institute of World Economy and International Relations that electronic version of the 4-nd issue of 2019 of French magazine Politique étrangère is now available. Those who are interested, please personally address to the editorial staff of MEMO Journal (room 18-17) with an electronic media (e-mailing is not possible because of technical reasons).

NEW SECTION

In response to the challenges of our time the Editorial board continues to open new thematic rubrics:

“World Energy Sector after Pandemic”. We plan to publish articles presenting in-depth analysis of influence of Pandemic on the global energy sector and forecasts of further developments in its various branches.

“Civilization processes of modern development” is a new rubric opened by MEMO Journal in 2020. It will be devoted to the analysis of the influence of civilizational factors and inter-civilizational interactions on the political and socio-economic development of the world at whole, regions and countries.

“Africa today and tomorrow”The rubric devoted to contemporary issues of Africa which is attracting growing interest of the world's leading actors. We plan to publish the articles analyzing the status of statehood, socio-economic and political development of the countries of Black continent, as well as the integration processes between them.

Dear colleagues, authors and readers!

We kindly request you to turn to editor-in-chief and executive secretary directly concerning reviewing scientific publications in our journal. Only editor-in-chief takes decision on order and publication the reviews!

CONTEST!

"World Eсonomy and International Relations" announces a contest for the best joint academic publications of domestic and foreign researchers and experts in topical issues of the world economy and international relations. The winners will be selected according to the results of peer reviewing and discussion at the Editorial Board. The articles will be published in priority order.

SUBSCRIBE TO THE JOURNAL

The print version of “World Economy and International Relations” journal is distributed by advance subscription only, and is not offered for retail sale. To subscribe please address to any post office in Russia by referring to the Federal Postal Service Union Catalogue, section “ARSMI”, the journal index is 70542. The subscription may be made for the whole subscription period or starting from any nearest available month for desired number of issues.

To purchase the full-text electronic version of the journal’s issue/article please address to the WEB portal of Scientific electronic library eLIBRARY.ru or URL: https://press.gaugn.ru/.

In journal
Years
2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | 1997 |

The author’s opinions may not coincide with the position of editorial