European Economic and Monetary Union is currently in the course of preparation by an inter-governmental conference. What are the benefits and risks associated with European monetary union? What essential requirements need to be fulfilled when the agreements are concluded?

In the twelve months preceding the conclusion by the EFTA countries and the EC of the agreement on the establishment of a common European Economic Area in October 1991, the three Scandinavian EFTA members - Norway, Finland and Sweden - decided to tie their currencies to the ECU. What objectives...