e Treaty of Rome in 1957 was the main achievement toward the classical liberal vision for Europe. The Treaty delivered four basic liberties: free circulation of goods, free offering of services, free movement of financial capital, and free migration. (查看原文)
With the ECB having been based on the model of the Bundesbank, high inflation countries inherited part of its prestige. The founding of the ECB was similar to an imaginary merger of the car makers Fiat and Daimler-Benz, where the Germans take over management and quality control. While the management majority is German, the Fiat’s plants are still in Italy. The costs of undoing the merger, however, are immense. While it is certainly good for Fiat, it is not so good for Mercedes itself. (查看原文)
These incentives were not unknown when the EMU was planned. The Treaty of Maastricht (Treatise of the Economic Community), in fact, adopted a no-bailout principle that states that there will be no bailout in case of fiscal crisis of member states. Along with the no bailout clause came the independence of the ECB. This was to ensure that the central bank would not be used for a bailout. (查看原文)
Five criteria for selection were negociated and established.
1.Price inflation rates had to be under a limit set by the average of three aspirants,with the lowest inflation rates +1.5 percent
2.Pubilc deficits had to be not higher than three pecent of GDP
3.Total public debts had to be not over sixty percent of GDP
4.Long term interest rates had to be under a limit established by the average of the three governments paying the lowest rates + two percent.
5.Exchange rates had tobe stay within the limits set by the European Monetary System (查看原文)
