Coordination of macroeconomic policies and convergence criteria in European Union

Abstract

As integration process evolves monetary and fiscal policies will be subordinated to EC considirations in a number of areas. Therefore, EMS requires co-ordination of monetary policy. Besides, the gains in effeciency which the member countries achieve from this process, coordination of monetary policies should improve the appropriate economic development in a whole community.Thus, with this advantage of the EC, any member countries will be prevented to fall behind the economic development inside the Community. Because, EC countries are committed to follow the common aim of the convergence. Hence convergence becomes an existential goal for the EC.