ABSTRACT
The area of economic and monetary policies is characterized by differentiated integration in the European Union (EU). In 1999, 11 out of 15 member states decided to adopt the euro as a common currency, effectively reaching deeper integration amongst this smaller group. Today, no less than 19 out of 28 member states continue this path of deeper integration of economic and monetary policies. This differentiation affects the EU’s external engagement, especially its representation, in economic and monetary matters. As the economic and monetary acquis of the Union foremost applies to the euro area, whenever this chapter uses the term EU it refers primarily to that area. Moreover, it should be noted that while the Union’s monetary policy mainly focuses on price stability, its economic policy aims to increase economic convergence between euro area members to better respond to potential asymmetric shocks (European Central Bank 2017).
