Against this backdrop, the institutional framework in the EC Treaty for the EMU does not only set a new institutional framework for monetary policy but also for the economic policies of the member states: •  The main tool for co-ordinating the policies are the so called “Broad economic policy guidelines”. They set the overall frame for the economic policies of the Member States. •  Building on this co-ordination framework the EU leaders agreed on a wide-ranging program of structural reforms – the so-called Lisbon Strategy in 2000. The strategy’s aim is to gearing national policies towards macro-economic stability and micro-economic flexibility. •  In addition to the co-ordination of economic policies the EC Treaty has put in place a framework for stability-oriented budgetary policies. The main element of this  BIS Review 17/2008  3  framework is the Stability and Growth Pact, which requires Member States to pursue sound fiscal policies. The economic policy guidelines and the budgetary rules are important so as to facilitate the adjustment to economic shocks in the absence of a national monetary and exchange rate policy. V The EU’s position on unilateral euroisation The EU’s roadmap for euro adoption is solid and indispensable. Accordingly, it is not surprising that the EU has taken a negative position towards unilateral euroisation by a candidate country or a Member State with a derogation.
Jürgen Stark: The adoption of the euro – principles, procedures and criteria Speech by Mr Jürgen Stark, Member of the Executive Board of the European Central Bank, at the Icelandic Chamber of Commerce, Reykjavik, 13 February 2008. *  *  *  I Ladies and gentlemen, It is a great pleasure for me to attend this conference, together with distinguished guests and speakers. In my remarks, I would first like to set out the European Union’s approach towards the adoption of our single currency, the euro. I will then spell out the EU’s and the ECB’s stance on unilateral euroisation. I will conclude my remarks with a brief overview of the potential economic costs and benefits of unilateral euroisation. The EU’s approach towards the adoption of the single currency The creation of the single currency has been a long and truly historic process. Sixty years ago, Europe was marred by political disarray and economic disorder. With the Treaties of Paris and Rome, Europe’s leaders started the construction of a united Europe on the ruins of the Second World War. Since then Europe has achieved a lot: •  One of the most important achievements is the Single Market, with the free flow of goods, services, capital and people across national borders. Consumers in Europe benefit from the larger supply of goods and services. The European companies benefit from the enlarged markets.