After the euro. Shaping institutions for governance in the wake of European Monetary Union

Book abstract:

The result of a workshop organized in May 1997 within the 1996-97 Forum on the Political Economy of an Integrated Europe, at the European University Institute, Florence, this book asks the following core questions: firstly, what implications is EMU having for the diversity of forms of capitalism within Western Europe? Specifically, will it favour the development of a distinctive European model as envisaged by Jacques Delors, or will it contribute to the triumph of the Anglo-American form of capitalism? This is considered from different points of view by several authors in the book. Robert Boyer makes a general assessment of the relationship of EMU to the 'diversity of capitalism' debate. Jonathan Story argues that French and German leaders have chosen to transform their financial systems into those of the Anglo-American type. Leila Talani analyses the difficult relations between EMU and the City of London and Stephen Clarkson contributes the particular perspective of relations between Canada and the USA within the North Atlantic Free Trade Area (NAFTA).

Secondly, the book examines whether the establishment of the European Central Bank (ECB) marks a new stage in the extension and thickening of the structure of the European Union, or whether it remains an isolated body. Finally, there are questions concerning the implications of monetary union for social policy. Gabriele Tondl considers taxation policy and the scope for fiscal federalism to offset some of the tendencies to geographical inequality likely to be induced by the single currency. Colin Crouch considers the question of wage determination and the possible role of industrial relations institutions.

Although no conclusions emerge from the chapters in the book, as the authors take very different views on the many issues presented, it aims to provoke lively debates on issues such as the political and institutional questions posed by the introduction of the euro and the imbalance in the roles of political and monetary authorities within Europe.

The editor, Colin Crouch, is Professor of Sociology, European University Institute, Florence.