The purpose of this paper is to explore the German national interest in European Economic and Monetary Union. Although not ignoring economic arguments, the analysis focuses on the arguably even more important political benefits and interests.
The first chapter introduces EMU from a European perspective, as the next logical step to complete the Single Market and as a source of economic advantages for EU member states. However, it is also an important vehicle for the aim of political union. Hence, in view of Germany′s traditional position in Europe, the progress EMU represents in terms of achieving European unity is a significant factor that led to the unequivocal attitude of the Kohl government favour of EMU.
The absolute necessity for Germany to advance the integration process was emphasised by German unification and the resulting political impossibility to refuse EMU as international support for a unified Germany was tied to stronger European integration. In addition, the common currency has benefits for Germany′s foreign trade reliant economy which seem to outweigh the economic doubts. Nevertheless, these concerns did play a role in defining political approaches and have influenced both the opposition′s stance and government policy towards EMU.
The government aimed to ensure the Euro′s long term stability by insisting on the Maastricht criteria and the stability pact. The uncompromising approach in this area, which is one of the first occasions for Germany to staunchly defend its national interest in terms of the EU′s internal structures against a majority of member states, was necessary to secure political and public consent within Germany, but was met with dismay in other countries.
While there was little open political opposition against EMU, public opinion was not fully supportive of EMU. However, scepticism of the common currency largely relied on economic uncertainties rather than on opposition against the European integration process and has never been strong enough to mobilise a public movement against EMU.
It is deduced that EMU is in Germany′s the long term interest on every level if certain conditions are met. The government′s policy to create a favourable environment for a single currency in spite of short term economic costs is motivated by a combination of the above factors and a recognition of the long term political and economic benefits, and is a continuation of Germany′s traditional commitment to the European integration process.
Inhaltsverzeichnis (Table of Contents)
- The EMU project from a European perspective
- Germany and Economic and Monetary Union
- Political interest in EMU: Why Germany is different
- Post-Cold War Europe and German Unification
- Germany in Europe and the Importance of History
- Economic opportunities for Germany
- German difficulties with EMU
- (Perceived) Economic and monetary risks...
- ...and half-hearted political opposition: "We're neither in favour of EMU nor against it, on the contrary!"
- German Policy Approaches to EMU
- Public Opinion in Germany
- EMU scepticism combined with a commitment to Europe
- Germany and the Single Currency: a survey of current public opinion
- Conclusions
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to explore the German national interest in European Economic and Monetary Union (EMU), particularly emphasizing the political benefits and interests that led to the country's full support of the project. While acknowledging economic arguments, the analysis prioritizes the political aspects. The paper will not cover specific economic programmes preparing the German economy for EMU.
- Germany's support for EMU as a logical step to complete the Single Market and as a source of economic advantages for EU member states.
- The importance of EMU for achieving political union and its significance within the context of Germany's traditional position as a central and supportive state in the European integration process.
- The necessity for Germany to support and actively advance the integration process, as emphasized by German unification and the resulting international support tied to stronger European integration.
- The economic benefits of the common currency for Germany's foreign trade-reliant economy, particularly in relation to the economic concerns of those who fear looser monetary policies and increased inflation and instability risks.
- Germany's commitment to ensuring the Euro's long-term stability through strict adherence to the Maastricht convergence criteria and the negotiation of the stability pact.
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter introduces EMU from a European perspective, highlighting its role as the next logical step to complete the Single Market and as a source of economic advantages for EU member states. This chapter also emphasizes the importance of EMU in achieving political union, aligning with Germany's historical position as a key player in the European integration process.
Chapter 2 focuses on Germany's specific interest in EMU, analyzing both the political and economic factors. The chapter explores the role of German unification in shaping Germany's stance towards EMU, as well as the economic opportunities and challenges presented by the project. It investigates the economic risks perceived by some and explores the nuanced approach of German political opposition towards EMU.
Chapter 3 examines public opinion in Germany towards EMU. It highlights the combination of skepticism towards the common currency and a commitment to the European integration process. This chapter also explores the results of a survey conducted on German public opinion regarding the single currency.
Schlüsselwörter (Keywords)
The paper delves into the German national interest in European Economic and Monetary Union (EMU), examining the political and economic factors that influenced Germany's support for the project. Key themes include German unification, political union, economic advantages, economic risks, and public opinion towards the Euro. The analysis focuses on the German government's approach towards EMU, emphasizing its role in shaping the project's direction and its commitment to ensuring the Euro's long-term stability.
- Quote paper
- Gunnar Matthiesen (Author), 1999, German policy towards economic and monetary union: €?, Munich, GRIN Verlag, https://www.grin.com/document/560
