ABSTRACT
Political choices to be made regarding the role and position of the Economic and Monetary Union (EMU) exercise an important influence on the future of European societies in crucial fields. This chapter surveys the main characteristics of European economic policies within the framework of the EMU. Economic policies have played an important role in the formation of an economic foundation of societal democracy. The external dimension of European Union (EU)'s monetary policies has a particular status with respect to centralization/decentralization since issues relating to the exchange rate of the euro with regard to other currencies are to be handled by Economic Affairs and Ministers of Finance (ECOFIN). The political and economic autonomy of the EU in the international system could be reinforced while the power of global financial markets could be weakened by the development of a regulation of international capital movements.
