ABSTRACT
This chapter examines the attempts made towards monetary co-operation in the European Economic Community (EEC), leading to ambitious plans for the creation of an economic and monetary union (EMU), and the turbulent path. It concerns a policy issue, an examination of the main theories and strategies on European integration will be useful only to the extent that it contributes to a better understanding of the different policies followed with respect to EMU. The chapter also examines the different approaches to European integration with the federalist school. The federalist school examines any process of integration in terms of an end-point which is the creation of a federal state. Strong reliance on economic determinism has characterised the neo-functionalist school. The neo-functionalist school came under strong attack both by the federalists and by the traditional school of international relations. The power politics school has provided in a sense an intellectual justification to Gaullist policy on European integration.
