EUROPEAN INTEGRATION AND THE EURO FISCAL SUSTAINABILITY AND.pdfVIP

EUROPEAN INTEGRATION AND THE EURO: FISCAL SUSTAINABILITY AND MACROECONOMIC STABILITY Georgine K. Fogel, Salem International University Sweta C. Saxena, University of Pittsburgh ABSTRACT countries called “Euro area.” The Euro is definitely a tangible currency not only for the more than 300 The purpose of this paper is to explore the extent to million citizens of the Euro area, but also for travelers, which the institutional framework of the EMU is able tourists, and investors from all over the world. to facilitate endurance for responding to potential Measured in terms of population, the Euro economic shocks and future challenges of the EU. We area is one of the largest economic entities in the discuss factors of macroeconomic stability and world, with a total of 302 million inhabitants. By financial sustainability in the Euro region and evaluate comparison, the population of the United States and the monetary and fiscal policies of the EU in regards Japan are 272 million and 127 million respectively. to the effectiveness of the institutional framework for The GDP of the Euro area is equivalent to 16 per cent being able to facilitate endurance and respond to of the world GDP, about 6 percentage points less than potential economic shocks and macroeconomic the share of the United States but more than twice the challenges within t