Disequilibria Management at the Euro Area Level

Author:Camelia Milea, Floarea Iordache, Alina Georgeta Glod, Adina Criste, Iulia Lupu
Pages:187-194
SUMMARY

The current crisis has shown that an economic integration through a political and monetary approach is wrong. It seems to be more appropriate a social and economic approach, meaning both a better preparedness of the new countries joining the euro area and more flexibility of the economic structures of the old members of the euro zone, in order to make the more "harmonious" the way of the monetary ... (see full summary)

 
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Performance and Risks in the European Economy
187
Performance and Risks in the European Economy
Disequilibria Management at the Euro Area Level
Camelia Milea
1
, Floarea Iordache
2
, Alina Georgeta Glod
3
, Adina Criste
4
, Iulia Lupu
5
1
Financial and Monetary Research Centre „Victor Slăvescu”, camigheorghe75@gmail.com
2
Financial and Monetary Research Centre „Victor Slăvescu”, alina.glod@gmail.com
3
Financial and Monetary Research Centre „Victor Slăvescu”, alina.glod@gmail.com
4
Financial and Monetary Research Centre „Victor Slăvescu”, cristeadina@yahoo.com
5
Financial and Monetary Research Centre „Victor Slăvescu”, iulia.lupu@gmail.com
Abstract. The current crisis has shown that an economic integration through a political and monetary
approach is wrong. It seems to be more appropriate a social and economic approach, meaning both a better
preparedness of the new countries joining the euro area and more flexibility of the economic structures of the
old members of the euro zone, in order to make the more "harmonious" the wa y of the monetary area
operation. For that purpose, this article has made an analysis of the imbal ances management issue in the euro
area in order to provide a f ew theoretical solutions for a better functioning of the Economic and Monetary
Union (EMU), b ased on the observation of developments in the euro area countries. This paper enriches the
economic literature, but a lso it is relying on the research workings made by the authors in the field of
European integration. The originality of this article arises from the extremely topical issue examined and its
way of approach, but also from the conclusions outlined.
Keywords: financial - economic crisis; disequilibria; macroeconomic imbalances; European integration
1 Introduction
The euro area is composed of countries that, over the years, have developed divergences caused by
the differences regarding economic structures, fiscal policy conduct, or the level of economic
development. The difficulties faced in the recent years by the euro area, particularly by those
countries from the periphery, put into the question the stability of the European monetary zone
functioning. Promoting the idea of monetary unification has considered both a political goal (that to
boost integration) and an economic one – according to which a monetary integration would stimulate
the economic convergence, too. The global financial and economic crisis has created new challenges
for the euro area authorities, hampering further the resolution the existing macroeconomic
imbalances.

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