Some reflections on economic policy

Abstract:

This essay is based on a paper presented at the Conference on Legal Founda-tions of International Monetary Stability, held in London (GB), 27–28 April 2006, which was held to celebrate Dr Rosa Lastra’s book with the same title (Oxford University Press, 2006).

Professor Smits analyses the asymmetry between economic and monetary union from a legal perspective. The author concludes that there is more scope for policy coordination among the EU States in spite of the basic distinction between the two elements of Economic and Monetary Union in the EU, under which Member States remain largely competent to pursue their own economic policies even when a single monetary policy is conducted at Community level.

He explores the possible contents of more aligned economic policies, notably on free movement of persons, education, energy and public health. He ends with a few considerations on economic policy choices and the furtherance of happiness.