Policy Paper on differentiation in EMU

This case study will cover the analysis of all EMU arrangements except banking union that is mechanisms and practices of integration and coordination of fiscal macroeconomic and monetary policies in the EU Economic and Monetary Union EMU is often regarded as the paradigm of differentiated integration in the EU The main source of division comes from the fact that only 19 of the 28 Member States have exchanged their national currencies for the euro However differentiation covers multiple realities within EMU There are different degrees of cooperation and integration within EMU countries including full integration monetary policy intergovernmental arrangements European Stability Mechanism or hard and soft mechanisms of coordination Stability and Growth Pact European Semester The paper will assess the functioning of these different modes of cooperation and integration as well as existing proposals of further differentiation in the context of debates on deepening the EMU This case study will be conducted by EPC with contribution from CIDOB