On the Economic and Monetary Union (EMU)

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kotarski 21 1 2016Zagreb, 22nd of January 2016 –Within the study programme "Governance in institutions of the state", first lectures on the Political Economy of the European Union were held by prof. Kristijan Kotarski from the Faculty of Political Science in Zagreb.

Prof. Kotarski spoke on the Economic and Monetary Union, while also explaining the political and economic circumstances that were the drivers of the European integration process and led to the development of the European Union as we know it today. Through the trilemma of open economies, professor explained what the creation of EMU meant for member states, which had to abandon their independent monetary policies and adopt fixed exchange rates. Afterwards, professor presented the necessary preconditions for success of economic and monetary unions. It was concluded that, despite the recent institutional developments, the EU continues to lack effective mechanisms, including a common fiscal policy, which are necessary to ensure optimal functioning of the EMU.

Next week, students will learn more on the role of the European Central Bank.