EMU - a view from the banking sector
By: LEVITT, Malcolm
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ArticlePublisher: London : Routledge, September 1996Journal of European Public Policy 3, 3, p. 499-514Abstract: The banking sector would need to make considerable investments in order to facilitate the introduction of a single currency but it faces uncertainty as to whether, when, where and how European monetary union (EMU) might start. 'Whether' is not so much a matter of claimed economic benefits (some of which arc contradictory) or costs (which are uncertain) but of Franco-German political determination. 'When and where' partly depends on meeting the economic convergence criteria, interpretation of which is a matter of political judgement. Many aspects of 'how' remain to be decided including legal continuity of contracts and monetary policy instruments. Although intended to enhance the Single Market, which is incomplete anyway, there is a risk that loopholes in existing legislation could be exploited for protectionist purposes.
The banking sector would need to make considerable investments in order to facilitate the introduction of a single currency but it faces uncertainty as to whether, when, where and how European monetary union (EMU) might start. 'Whether' is not so much a matter of claimed economic benefits (some of which arc contradictory) or costs (which are uncertain) but of Franco-German political determination. 'When and where' partly depends on meeting the economic convergence criteria, interpretation of which is a matter of political judgement. Many aspects of 'how' remain to be decided including legal continuity of contracts and monetary policy instruments. Although intended to enhance the Single Market, which is incomplete anyway, there is a risk that loopholes in existing legislation could be exploited for protectionist purposes.
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