EMU: A Worthwhile Gamble

In a year from now, eleven of the current fifteen member states of the EU will, in all probability, sign up to European Monetary Union. In this article Pierre Jacquet looks at the reasons for widespread EMU support and at the economic as well as the political rationale for the single currency. Weighing up the cost-benefit analysis of monetary union and comparing it to alternatives, the author argues that EMU is a worthwhile gamble and that the task should now be to make it a success. This implies the willingness of member states to undergo overdue structural reforms and to be more forthcoming in promoting an effective coordination of economic policies.