Coming of age: report on the euro area

(From introduction). By many standards, economic and monetary union (EMU) is a major success. The transition to the new currency was remarkably smooth. The euro area has enjoyed remarkable price stability. After several years of disappointing economic performance between 2001 and 2005, growth picked up in 2006. Economic integration among the countries participating in the single currency has progressed. In spite of fashionable talk about a break-up of the euro area, the reality is that there are many countries wishing to join and none seeking to leave.Nearly twenty years after the Delors Report provided the blueprint for EMU, fifteen years after the ratification of the Maastricht Treaty and almost ten years after the launch of the euro, EMU is still unfinished business. There is disagreement on which reforms are most desirable, the degree to which national economic policies should be coordinated, and the nature of the dialogue between ministers of finance and the monetary authority. A common thread throughout this report is the need for the policy framework of the euro area to be made clearer, more transparent and more accountable. We believe these reforms are essential for dealing with potential crises in the euro area.