What is the economic and monetary union?

Economic and Monetary Union is a place where several countries agree to share one currency. This means agreeing to a certain degree of cooperation on economic policies as well as agreements on business obstacles. The best -known example is a group of countries in the European Union. Countries involved in the economic and monetary union can also cooperate on the legislative choir, but this is not inevitable. For example, a group of countries can share a common currency without a business agreement. Today there are several sets, informal and formal, most of all include a large country and several allied smaller countries as those that used to be part of the empire, but now have a certain degree of independence. The most important currently exists by a negotiation between European countries that do not share currency or are not members of the European Union. Such an arrangement may include a common market that limits obstacles such as business tariffs or a uniform market in which the aim is to have as few obstacles to trading, which usually means that businesses andWorkers have the right to operate in any of the countries.

In order to be an economic and monetary union, there must be a one -time and economic union. The only main example includes 16 countries, since 2010, which are members of the European Union and have accepted the Euro as a national currency. The European Union is also an economic union, but not all members share the currency. The United Kingdom and Sweden are the most important "logging out", while some newer EU members have to meet the financial criteria for euro acceptance, but they should eventually do.

The European Union has other aspects of partnerships that are not an inevitable part of the economic and monetary union. The EU has the ability to issue directives on political issues, usually in some way concerning trading that Member States must adopt into national law. Meanwhile countries using the euro have set up a European central bank that adoptedThe decisions of monetary policy that affect all these countries. While such a bank is almost practical inevitability with a single currency, it is not your own requirement of the economic and monetary union.