Creating a functioning European Union

Abstract

This chapter looks at the evolution of the European Union (EU), and the establishment of the European Central Bank (ECB) and the Economic and Monetary Union (EMU) in relation to the deregulation process and legal framework. Moreover, it informs readers about the story behind the single currency, deregulation and liberalization policies applied by numerous EU countries during the 1980s and 1990s as well as procedures during to change over to the euro. Furthermore, the price stability of the euro since its introduction, as well as financial integration in the EU are discussed. The overall objective of this chapter is to explain why all these developments have been a turning point for the global financial system.