This chapter outlines the 'new' shape of economic policymaking within Economic and Monetary Union (EMU). EMU is based on a unique arrangement of public finance relations whereby fiscal policy remains decentralised to EU member states, but is subject to rules to combine discipline and flexibility. In contrast to the advent of the euro when the incentive to maintain the announced fiscal consolidation path were evident, the situation may be different once in EMU when adherence to the Stability and Growth Pact's (SGP) rules may be politically inefficient. EMU is an essentially political strategy based upon false economic assumptions of cyclical and structural convergence. Similarly, in 2003 the European Central Bank (ECB) undertook a major reassessment of its monetary policy stance given the destabilising effect of the 'one size fit all' interest rate policy upon both domestic EMU economies and in terms of the euro external position upon global capital markets.