What Will Participation in the European Economic and Monetary Union Mean for Austria?

To complete the integration process the EC intends to establish the Economic and Monetary Union. At present, only few EC member countries are able to meet the convergence criteria required for participating in a monetary union with a single currency, as laid down in the Maastricht Treaty. Advantages of a single currency range from lower transaction costs to a reduction of investment risks thereby fostering economic growth. Among the disadvantages are the loss of autonomy in foreign exchange and monetary policy matters as well as the uncertainty whether a single currency may mean less economic stability than the present situation (an EMS dominated by Germany). Austria is one of the few European countries which would already now qualify for membership in the Economic and Monetary Union.