ABSTRACT
Introduction Since the last edition of this handbook there have been important changes in the European Union (EU). First, there has been a further enlargement from twelve to fifteen members, with the inclusion of Austria, Finland and Sweden. Other countries have applied for membership including Cyprus, the Czech Republic, Estonia, Hungary, Poland and the Slovak Republic. Secondly, in May 1998 the countries that were willing - and able - to be part of the European Monetary Union (EMU) were selected. Denmark, Sweden and the UK opted out of EMU, at least temporarily, whereas Greece failed to fulfill the Maastricht criteria for joining. Thirdly, in January 1999, The Single European Currency (the Euro) came into operation in the countries adhering to the EMU, although national currencies will continue to be used until January 2002. Monetary policy is in the hands of the European Commission and other European institutions, including the new European Central Bank. The long term scenario is for a further enlargement of the EU eastwards and a progressive convergence on many economic issues.
