ABSTRACT
European monetary union is imminent. Few other economic integration initiatives will have a more decisive impact on the economic and social governance structures of the member-states. Because monetary union is indivisible, the creation of a Euro-zone will involve a huge transfer of power from the national to the EU level. If such a shift takes place, one of the most potent signs of national economic sovereignty will have been punctured. Without French francs, Dutch guilders or Italian lira, it will be made clear to everyone that national governments have given up managing a large part of their own macro-economic affairs. Thus the creation of a single currency involves the EU crossing an economic and political Rubicon. The exact fallout of this constitutional and financial journey remains uncertain, but few aspects of economic policy-making will be left untouched. One area that is likely to be deeply affected is Social Europe.
