*** Returning to the present day, a little more than eight years after Europe’s leaders signed the Treaty of Maastricht and agreed on the necessary framework and timetable, we now have a functioning EMU with a single European currency. Nonetheless, I would not be surprised if, to some external observers, EMU might at first glance appear rather unusual and perhaps even somewhat confusing. This is no doubt a consequence of some of the specific features of EMU that I should take some time to explain. This also holds true of the European Union, which still does not fully correspond to the model of a union you may have in mind, namely the United States. Starting from basics, I should point out that some of these specific features relate to the fact that while the European Union is comprised of 15 Member States, only 11 of these have so far adopted the euro. We cannot therefore talk about the single monetary policy of the European Union, but rather, for this purpose, we must instead refer to the euro area, the euro zone or, as some people have chosen to call it, Euroland. A similar problem arises when we wish to refer to the authority responsible for the conduct of the euro area monetary policy. The Treaty establishing the European Community stipulates that this policy is to be conducted by an independent European System of Central Banks (ESCB), which comprises the European Central Bank (ECB) and the national central banks of the 15 EU Member States.
Since then, the process of European integration has continued to develop. Throughout this process national policymakers, economic actors and the general public have each had to undergo a learning process whereby the previous, narrowly defined, national perspectives have been replaced by an increasingly European vision. This was and is not always easy. Today, the European Union stands for a highly integrated single market with about 380 million people, which combines the economies of 15 European countries and accounts, like the United States, for around 20% of world GDP. Moreover, it stands for a Monetary Union with a common currency, the euro, which, at present, has been introduced by 11 countries. Finally, the European Union, even though it lacks international personality, is characterised by a substantial and growing degree of political cooperation and coordination. This applies to justice and home affairs as well as to foreign and security policies. 1  BIS Review 4/2000  *** The dynamics of the integration process and, with it, the increasingly European outlook of both politicians and citizens was essential for creating an environment in which Europe’s leaders could take the bold decision to adopt a single European currency. But there were also a number of more specific factors that facilitated this decision, some of which I should briefly mention. The first of these was the signing of the Single European Act, in 1986, which committed the then European Community of 12 to adopt the measures necessary to complete the “single market project” by the end of 1992.