ABSTRACT
European monetary union has existed for just over four years, which is more or less equivalent to the average length of a business cycle in the euro area. Risks arise in dealing with what is fundamentally known. They appear manageable and probabilities can be specified for particular events. Uncertainty results in dealing with what is unknown. Uncertainty often leads to the adoption of a wait-and-see attitude and turning to what is certain and proven. Article 105 of the Treaty on European Union states that the Eurosystem's overriding objective is to maintain price stability. The Eurosystem can pursue this goal with total independence from political instructions. The objective of stability and independence are important preconditions for price stability. Finally, monetary union has had a positive effect on the convergence of the European financial markets Under the current rules, the enlargement of monetary union would also lead to an expansion of the monetary policy decision-making body.
