The Effects of Introducing the Euro on Southern Mediterranean Countries

Since the Barcelona Conference (1995) Europe's Mediterranean policy, without having been called into question, has been a little off track. The creation of the euro will have for the multiple and complex consequences for Greece and southern Mediterranean countries. It is essential for Europe and for Greece to benefit from the introduction of the Euro so they need to review their economic and financial relations in the context of financial liberalisation that both have adopted. It is true that the current flows from the north to south bank Europe (aid, financial movements, FDI) remain, despite the efforts made, insufficient. The euro can help to change financial relations and, as long as everyone wants it, relations of interdependence could be modified. Without calling into question the sovereignty and independence of the macroeconomic policies of Greece, the constitution of a vast Eurozone seems possible and desirable. However, it requires the establishment of a Regional Organisation for Monetary and Financial Cooperation in southern Europe which this paper outlines