Life under the euro
The political leaders of the European Union are close to being prisoners of the momentum towards European monetary and economic union that they have stimulated. Those who believe progress hinges on Emu aspirants achieving "three point zero" budget deficits may be unaware of the accelerating preparations that would be thrown into disarray - probably irretrievably - were there to be delay. The implications for capital markets are crystallizing since the preparations already being made will shape their final form.
The Maastricht Treaty was signed in December 1991 and finally came into force at the end of 1993 after a rather difficult ratification process. Some observers felt that its ratification would, ironically, mark its death. However, a treaty is a set of legal obligations and public officials are obliged to implement the expressed will of their political masters. In 1994, the European Commission set up a committee of independent...
