This paper studies the relationship between EMU sustainability and the European Political Union. Following De Grauwe’s suggestions, it is shown that a number of independent economic policies remained in the realm of each member country despite the setting up of EMU could produce shocks putting...

The increased heterogeneity of the European market after the prospective joining of the acceding countries to EMU could imperil the latter’s stability. It is widely expected that following enlargement the optimality conditions of the eurozone will decrease, implying a more difficult...