ABSTRACT
This chapter argues that the democratic deficit of Economic and Monetary Union (EMU) is a logical consequence of earlier technocratic and elitist integration process, which in the case of EMU has led to asymmetric process of economic and monetary integration. It examines the particular nature of governance of the economic and monetary policies in the European Union (EU). The chapter also examines whether the EU can proceed on the road it has embarked on, or whether it needs to consider a change of direction. It focuses on possible problems of political responsibility and policy instruments in the event of a country-specific shock occurring in the post-EMU environment. The chapter reviews some useful theoretical concepts developed by the neofunctionalists. It examines what lessons can be learnt from fiscal federalism. The chapter argues that the European economic and monetary policies have been developed by monetary authorities following a pragmatic, technocratic, elitist road to integration.
