Has Italy Won or Lose in the European Monetary Union

Abstract

The transformation of the European Monetary System into the European Monetary Union is a significant event in the development of the world economy and a major issue of concern in international financial research. The establishment of the European Monetary Union is the basis and guarantee for the establishment of the European Economic Union and Political Union. In this study, by analyzing various economic indicators of Italy, the author can determine whether it is a winner or loser in terms of gains and losses in the European Monetary Union and then can also infer the changes in the economies of various countries under the union policies. In terms of economic development, it can be seen from the Gini coefficient and GDP growth rate that Italy has long been in a predicament of a large wealth gap and weak economic development. In terms of economic security, it can also be inferred that Italy is trapped in a quagmire of foreign debts and perennial fiscal deficits through the two data of the percentage of foreign debt to GDP and the ratio of fiscal revenue and expenditure, resulting in insufficient amplitude credibility and large economic loopholes. From this, it can be judged that Italy is in the position of a loser in the European Monetary Union.