Money and the European Union

Interest in a common money for western Europe has waxed and waned for the past quarter century. Deadlines have been set- but not met- most recently the 1997 deadline. To an outside observer, the discussion and actions during the past quarter century suggest that the idea of a monetaiy union and common currency has great appeal until it is examined closely. Then, problems begin to mount. The current deadline for European monetary union, 1999, is likely to be another missed deadline. In September, Germany's finance minister, Theo Waigel, told a committee of the Bundestag that Germany would insist that countries must meet the Maastricht treaty's requirements for public debt and budget deficits. No one in authority expected Greece to be a member of the monetary union, but Minister Waigel's statement warned that the current German government would oppose membership for Italy, Sweden and Belgium if their ratio of debt to GDP exceeds 60% or their budget deficit exceeds 3 % of GDP. In October, the European Union accepted the German position but continued to act as if a union would occur. They agreed to use actual data for calendar year 1997 as a basis for decisions about eligibility and t