European Economic and Monetary Union

This chapter provides an overview of the governance framework covering European economic and monetary union (EMU) as mainly laid down in primary and secondary Union law, as well as in relevant intergovernmental treaties, and also covers the European Banking Union (EBU). This includes an abbreviated chronicle of the development of EMU, highlighting the long prehistory of the European single currency and its links to the international monetary system. The legal instruments governing today’s EMU are mapped, and an overview of the EMU governance framework is provided. The focus is on the European system of economic policy coordination, as well as the monetary policy in the euro area and the Euro as the single European currency. On the EBU, the particular focus is on explaining why its main pillars are considered key components of EMU. The chapter concludes with a brief reflection on EMU as a unique project of international economic integration.