Файл: 01_EU_overview.pdf

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•  economic  convergence,  through  multi-

lateral  surveillance  of  member  states’  eco-

nomic policies.

The 

second  stage

  began  on    January 

994. It provided for :

•  establishing the European Monetary In-

stitute (EMI) in Frankfurt. The EMI was made 

up of the governors of the central banks of 

the EU countries;

•  independence of national centra banks;

•  rules to curb national budget deficits.

The 

third stage 

was the birth of the euro.

On  January 999,    countries adopted 

the  euro,  which  thus  became  the  common 

currency of Austria, Belgium, Finland, France, 

Germany,  Ireland,  Italy,  Luxembourg,  the 

Netherlands,  Portugal  and  Spain.  (Greece 

joined them on  January 200). From this 

point onwards, the European Central Bank 

took over from the EMI and became respon-

sible  for  monetary  policy,  which  is  defined 

and implemented in euros. 

Euro notes and coins were issued on  Janu-

ary  2002  in  these  2  euro  area  countries.

National  currencies  were  withdrawn  from 

circulation  two  months  later.    Since  then, 

only the euro has been legal tender for all 

cash and bank transactions in the euro area 

countries,  which  represent  more  than  two 

thirds of the EU population.

b.  The convergence criteria

Each  EU  country  must  meet  the  five  con-

vergence criteria in order to go to the third 

stage. They are: 

• 

price stability:

 the rate of inflation may 

not exceed the average rates of inflation of 

the three member states with the lowest in-

flation by more than .%;

• 

interest rates

: long-term interest rates 

may not vary by more than 2% in relation to 

the average interest rates of the three mem-

ber states with the lowest interest rates;

• 

deficits: 

national budget deficits must 

be below % of GDP; 

Ljubljana’s market traders swapped the Slovenian tolar for the euro on 1 January 2007.

© Janez Skok/Corbis

Europe in 12 lessons

• 

public debt: 

this may not exceed 0% 

of GDP;

• 

exchange rate stability:

 exchange rates 

must have remained within the authorised 

margin  of  fluctuation  for  the  previous  two 

years. 

c.  The Stability and Growth Pact

In June 99, the European Council adopt-

ed a Stability and Growth Pact. This was a 

permanent  commitment  to  budgetary  sta-

bility,  and  made  it  possible  for  penalties 

to  be  imposed  on  any  country  in  the  euro 

area  whose  budget  deficit  exceeded  %. 

The Pact was subsequently judged to be too 

strict and was reformed in March 200.

d.  The Eurogroup

The Eurogroup is the informal body where 

the finance ministers of the euro area coun-

tries meet. The aim of these meetings is to 

ensure better coordination of economic poli-

cies,  monitor  the  budgetary  and  financial 

policies of the euro area countries and rep-

resent  the  euro  in  international  monetary 

forums.

e.  The new member states and EMU

New EU members are all due to adopt the 

euro, when they are able to meet the crite-

ria. Slovenia was the first of countries from 

the  2004-enlargment  to  do  so  and  joined 

the euro area on  January 200.

The euro: the common currency for over 310 million people in the EU.  

© Creativ Studio Heinem/Van Parys Media

.8. Towards a knowledge-based society

      8. Towards a 

knowledge-based society

Europe in 12 lessons

At  the  beginning  of  the  990s,  two  great 

changes  began  transforming  economies  

and daily life throughout the world, includ-

ing  Europe.  One  was  the  emergence  of  a 

globalised  economy  as  economies  every-

where became increasingly interdependent. 

The other was the technological revolution, 

including the internet and new information 

and communication technologies.

Priority on growth and jobs 

•  The Union intends to respond to globalisation by making the Europe 

an economy more competitive (liberalisation of telecommunications, 

services and energy).

•  The Union is supporting the reform programmes of member countries  

by making it easier to exchange ‘best practice’. 

•  It seeks to match the need for growth and competitiveness with  

the goals of social cohesion and sustainable development which are  

at the heart of the European model.

•  The EU Structural Funds will spend more on training, innovation  

and research, in the 2007–13 budget period.

Europeans have to be equipped for today’s job market. 

© IMAGEMORE Co, Ltd/Getty Images

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I. The Lisbon Process

a.  Objectives

By  the  year  2000,  EU  leaders  were  well 

aware that the European economy needed 

thorough  modernisation  in  order  to  com-

pete with the United States and other major 

world  players.  Meeting  in  Lisbon  in  March 

that year, the European Council set the EU 

a  new  and  ambitious  goal:  to  become,  by 

200,  ‘the  most  competitive  and  dynamic 

knowledge-based economy in the world, ca-

pable of sustainable growth with more and 

better jobs and greater social cohesion’.

b.   The strategy

The  European  Council  also  agreed  on  a  

detailed  strategy  for  achieving  this  goal.  

The ‘Lisbon strategy’ covers a whole range  

of areas, such as scientific research, educa-

tion, vocational training, internet access and 

online business. It also covers reform of Eu-

rope’s social security systems. These systems 

are  one  of  Europe’s  great  assets,  as  they 

enable  our  societies  to  embrace  necessary 

structural and social changes without exces-

sive  pain.  However,  they  must  be  modern-

ised so as to make them sustainable and so 

that their benefits can be enjoyed by future 

generations.

Every spring, the European Council meets to 

review progress in implementing the Lisbon 

strategy.

II. Closer focus  

on growth and jobs

The  European  Council  in  spring  200  did 

not attempt to hide the fact that, six years 

after  its  launch,  the  results  of  the  Lisbon 

process have been mixed. As a result, it de-

cided to address the problem of continuing 

high  unemployment  in  many  EU  countries 

and  refocus  the  EU’s  priorities  on  growth 

and jobs. If it is to make its economies more 

productive and increase social cohesion, Eu-

rope must continue to concentrate its efforts 

mainly on raising economic performance, in-

novation and improving its people’s skills. 

Tomorrow’s pensioners need social security which must be prepared today.

© Javier Larrea/Van Parys Media