Economic Policy in EMU: Community Framework and National Strategies – focus on Greece

Abstract

The objective of this paper is to analyse key aspects of economic policy in EMU taking into account the basic components of the Community framework, namely (i) the internal market, (ii) common fiscal rules and provisions for economic policy co-ordination, and (iii) the single monetary policy. The paper argues that EMU provides a framework favourable to economic activity provided EMU advantages are fully exploited and disadvantages minimized. An optimal use of available policy instruments is necessary by individual member states in order to take advantage of the framework of stability provided by EMU and take an active role in the European and international division of labour.