Session 8

Question 1

Treaty of Maastricht

Answer 1

EMU

Question 2

EMU goal

Answer 2

Launch a common currency and coordinate economic policies

Question 3

European Monetary system

Answer 3

-1979
- exchange rate mechanism based on artificial currency

Question 4

European currency unit (ECU)

Answer 4

Artificial currency whose value was made of the respective weight of each currency

Question 5

Euro : stage 1

Answer 5

-1990/94
- Free movement of capital

Question 6

Euro : stage 2

Answer 6

• 1994/99
• ESCB : European System of central banks

Question 7

Euro : stage 3

Answer 7

-1999/now
- Final exchange rate and transition to euro
- Started circulating in 2002

Question 8

4 countries without euro

Answer 8

Bulgaria, Czech Republic, Denmark, Hongrie, Pologne, Roumanie, Sweeden

Question 9

Convergence criteria’s 1996 (4)

Answer 9

• Price stability
• Fiscal discipline : budget deficit and public debt
• No derogation from the ERM
• Long term interest rate

Question 10

Euro creation date

Answer 10

1999-> 11 members

Question 11

ECB

Answer 11

European central bank

Question 12

Positive impacts of EMU

Answer 12

Strong and stable international currency

Question 13

Article 123 TFEU

Answer 13

ECB is prohibited from granting loans to EU members to preserve independence

Question 14

Article 125&1 TFEU

Answer 14

no bail out of debt

Question 15

Article 122 TFEU

Answer 15

member can help others facing economic difficulties

Question 16

Stability and growth pact

Answer 16

• 2012
• the rule of no public deficit

Question 17

European semester

Answer 17

-Detailed analysis of members programs of economic and structural policies
- Provide policy advice for member states

Question 18

Excessive deficit procedure

Answer 18

Asset or correct the risk of excessive deficit, sanctions can apply