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By Brian Ardy, Iain Begg, Dermot Hodson PhD, Imelda Maher, David G. Mayes (auth.)

ISBN-10: 0230554741

ISBN-13: 9780230554740

ISBN-10: 1349432601

ISBN-13: 9781349432608

ISBN-10: 1391681932

ISBN-13: 9781391681931

ISBN-10: 5127610159

ISBN-13: 9785127610158

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Extra resources for Adjusting to EMU

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The 2003 streamlining reforms of the BEPGs may help integrate the EES into the wider policy framework and the 2005 re-launch of the Lisbon strategy promises to go further. There remain the problems at the EU and state level of different ministries co-ordinating their activities. Nonetheless, the EES despite the problems identified is important, as it keeps employment firmly on the agenda and offers one route to greater labour market flexibility. Part II concentrates on empirical analysis of how countries adjusted to EMU, with five of the chapters focusing on single Member States.

Unemployment has been persistent. Forecasts for 2006/2007 suggest a return to average growth, but this is still below the Lisbon presumption of 3%. If the aim is still to be fulfilled, not only has all of the gain got to come in the later years of the decade but it has to offset the performance in the first half. This is unlikely, though not wholly impossible, but in any case it is unreasonable to be too literal in dating the improvement in performance. Above all, just looking at actual outcomes tell us nothing about whether the performance is better than it would have been had Stage 3 of EMU not been implemented at the beginning of 1999.

Political differences are also wide, ranging from highly flexible, less regulated regimes in countries such as Estonia to much more controlled environments, such as the Czech Republic. Greater variety adds to the challenge for euro area policy but the challenge is already considerable because the variety among countries runs deeper than we have thus far described. Responses vary over the cycle, as does policy. We therefore move on to consider this ‘asymmetry’ in more detail. 3 Asymmetry As in Mayes and Virén (2003) we identify six sources of asymmetry in the euro area (and more widely in the EU and OECD) that make the adoption of the single monetary policy more complex.

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Adjusting to EMU by Brian Ardy, Iain Begg, Dermot Hodson PhD, Imelda Maher, David G. Mayes (auth.)


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