Bits of Economic and Monetary Union Everywhere

Abstract

With the introduction of the legal framework of Economic and Monetary Union by the Maastricht Treaty a new chapter not only in European economic integration, but also in the development of the global economic system was opened. The close coordination of the economic policies of the Member States of the world’s largest trading block and the introduction of the euro has had implications far beyond the geographic boarders of Europe. This is partly due to the geographic extension of some Member States beyond Europe and their special relationship with overseas countries and territories. The use of the euro as official currency has thus been effectively extended to the shores of Africa and South America. Moreover, several previously existing exchange rate agreements between a number of Member States and third countries and territories have been continued based on corresponding Council decisions. As a result, the euro constitutes the official currency not only in areas outside the continental European territory of the EU, but also outside the Euro area itself. At the same time the European single currency has also made a remarkable career as a global anchor currency. Yet what are the legal and economic implications of these ties with the European Union and moreover the growing global role of the euro in times of global economic crisis? In seeking answers to this question the paper will namely explore the unique legal and institutional arrangements governing the use of the euro abroad and explore the economic implications thereof.