Europe's economy was in shambles after the end of World War II. They had invested a lot of money and resources to financing the war. In 1948, The United States Secretary of State George C. Marshall, suggested that the United States should assist Europe in their rebuilding, restructuring, and reconstruction. Offering U.S. capital, resources, and cooperation to the countries of Europe would accomplish this. This was known as the Marshall Plan. This plan was very successful right out of the gates. In just two years Europe was ahead in industrial production

Currie, David. "The Pros and Cons of EMU." 1998.

The report was reviewed in 1989 at the Madrid Summit. EMU was gathering a lot of support due to the fall of the Soviet Union and the unification of Germany. Finally in 1991, EMU was put into law with the signing of the Maastricht Treaty. It provided an economic, political, and legal framework for the single currency, including three stages in the journey towards EMU. In the first stage it will be known who will be participating in EMU. The European Central Bank will be set in place and conditions for conducting monetary policies will be decided. Also the production of the Euro banknotes and coins will begin.

"The debate is polarized to an extraordinary degree. For many who oppose the single currency, it is not merely an ill-advised undertaking, but a disastrous one: a stride further along the road to a European superstate that will submerge the individuality of the European nations in an unwieldy federation, hobbled by bureaucracy, commanding little popular support and imposing a crippling burden of regulatory and other costs on Europe's economies. Opponents also see it as a distraction from the two most urgent tasks currently facing the EU: completion of the single market and enlargement of the Union to the east. Many argue that EMU will prove unworkable and divide Europe dangerously into "ins" and "outs". Many advocates of EMU reply in kind. They see not only a chance to achieve worthwhile economic benefits, but also a fleeting opportunity to grasp an historic prize. They regard EMU as essential to creating a stronger EU, with greater economic, political and social cohesion. This offers the best hope for helping the former communist-bloc countries: closer integration among the current EU members helps, not hinders the prospects for enlargement. Without the single currency, they say, the reality of the single market will not be achieved and Europe's economies will remain divided and weak, unable to compete internationally either with the low-wage economies of Asia or with the large, integrated, high-wage economy of the USA. Only a stronger and more integrated Europe will be able to exercise leadership on the global issues facing the world economy (Currie).

Emerson, Michael.The ECU Report. London: Pan Books Limited., 1991.

In reference to the criteria mentioned above, there were five major criteria laid down by the Maastrict Treaty. The inflation rate must be within 1.5 percentage points of the average rate of the three states with the lowest inflation. The long-term interest rate must be within two percentage points of the average rate of the three states with the lowest interest rates. The national budget deficit must be below three percent of GNP. The national debt must also not exceed sixty percent of GNP. Lastly, the national currency must not have devalued for two years, and must have remained within the two and one quarter percent fluctuation margin provided by the EMS. A lot of people seem to think that these criteria are unrealistic for a lot of the countries of EU. Many countries will be forced to develop a cutback policy in order to fulfill the Euro requirements and become or remain a member.

Dehors also stated that three steps must be taken in three domains to avoid economic imbalances. Competition policy and other measures must strengthen market mechanisms, common policies should be devised to enhance the process of resource allocation where market forces are not adequate, and macroeconomic courses should be coordinated.

Some common words found in the essay are:
Werner Report, ECU Report, David Currie, Central Bank, Currie Despite, Central Banks, Third EMU, European Union, Euros References, Euros Companies, single currency, monetary union, monetary policy, national currencies, exchange rate, central banks, exchange rates, banknotes coins, low inflation, euro banknotes coins, euro banknotes, european central bank, national central banks, national currency euro, european monetary union,
Approximate Word count = 4793
Approximate Pages = 19 (250 words per page double spaced)