Economic and Monetary Union

Economic and Monetary Union (EMU) have discovering approaches to adjust the control of risks in the strategy system. The following recommendations are to emphasize the importance of reconciling economically desirable requirements. In their productivity wage policy should enhance in efficiency of their productivity. The EMU’s price stability target would benefit from the use of improvements in productivity, without this decision out requests demands with regard to wages and wealth distribution.
Next, the Economic and Social Committee (ESC) agrees that greater convergence should be promoted in order to achieve domestic price stability. A necessary condition for stable exchange rates, and the formulation of monetary policy in an EMU should ensure price stability commitments, which are necessary to the success of that Union.
Besides, EMU has 2 types of reform plan. Firstly, the plan was entitled “Towards a genuine Economic and Monetary Union”. To implement actions to ensure the stability and integrity of the EMU the following guide is required. The first step is to ensuring fiscal sustainability and breaking the costly link between banks and sovereigns. Stage two completes the financial framework and promotes sound structural policies. The final stage is improving the resilience of EMU by creating a central shock absorption function.
Lastly, another EMU reform plan which is entitled “Completing Europe’s Economic and Monetary Union”. The guide is designed to ensure that the currency union functions smoothly and to enable member states to be better prepared to adapt to global challenges. The EMU should become more resilient in phase one of the second reform plans by building on existing instruments. On the basis of consultation with an expert group, the European Commission will publish a white paper evaluating the progress made in Stage one and detailing the next steps and measures required to complete the EMU in Stage two. The last stage of the second reform plan reaches the final stage of “a deep and genuine EMU”, also taking into account the prospects for possible changes to the EU Treaty.