Author: Assoc. Prof. Kaloyan Simeonov
Since the establishment of the Euro-area in the beginning of 1999, interest towards the development of monetary unions has been on the rise. The Economic and Monetary Union of the EU has been the most developed multinational union, which has unique characteristics and has become a model for regional economic and monetary integration.
In order to comprehend fully the Euro-area, it is necessary to know the nature and the history of monetary unions. Some of those unions do not exist on the map anymore, others are still functioning today, while there are plans for establishing new monetary unions in some regions of the world. The forecasts for the development of the Euro-area vary between the two extremes: from the possibility of its rapid disintegration to the probability that the latest economic and financial crisis will trigger reforms, whereby the Economic and Monetary Union will be effectively complemented by a completed economic, fiscal, financial and political union among the Member States.
The analysis on the topics, related to the Euro-area, is important also because of the fact that Bulgaria needs to prepare for adoption of the single currency. Since the onset of the debates for a two- or multi-speed Europe, and for a Union divided into core and periphery, the accelerated accession of Bulgaria to the Economic and Monetary Union becomes all the more topical and necessary.