EU regulation on the prevention and correction of macroeconomic imbalances

This essay hasn't yet been marked by one of our teachers

You can view 9 essays on International Politics that have been Marked by Teachers

The first 200 words of this essay...

Introduction:

In 1999, 17 member states of European Union adopted a single currency which was called the Euro. The European Monetary Union (EMU) enjoyed a successful first ten years but following the global of financial crisis it has been plunged into turmoil

Action was needed to be taken, in order to convince the markets that the problems the EMU was facing were to be tackled and act as a reassurance that EU leaders were serious about saving the single currency. This need for action has resulted in a 'six pack' of new legislative measure adopted recently, 5 new regulations and one new directive, which contained 'the most comprehensive reinforcement of economic governance in the EU and the euro area since the launch of the Economic and Monetary Union'.1 All these reforms were engineered to stay within the TEU limits and also to ensure that the enforcement and surveillance methods contained enough 'teeth' to demonstrate that the EU was serious and not just 'full of hot air'.

The 'Six pack':

These six measures were:

1. A regulation amending the legislative underpinning of the preventative part of Stability and Growth pact2- The preventive part