Towards a Genuine Economic and Monetary Union: The Implications for the UK and ‘Euro-outs’ (2013-14)

This project explores the implications of moves towards a genuine Economic and Monetary Union (EMU) for the UK, other ‘outs’ and EMU states.

It aims to contribute expert insights to advancing and improving the quality of the public debate at the European level on the future direction of Europe’s Economic and Monetary Union (EMU). It explores and assesses options for the Euro-outs, in particular the economic policy options the UK faces.

Europe’s EMU is moving towards fuller integration in many areas, creating common institutions and joint policies for participating countries. This is a process in which EU countries not using the euro, or ‘euro-outs’, will not be participating.

A banking union, which will bring about closer financial integration in the euro area, is likely to have significant implications for non-euro area member states, especially those with large financial sectors. The implications could be particularly significant for the UK, with London currently playing a leading role in euro-denominated financial markets.

The project involves two research workshops held under the Chatham House rule,  the first focusing on trends and implications on FDIs and trade arrangements, within access to the Single Market, and the second focusing on the implications on London’s financial centre, with an analysis of trends in capital movements and the role and impact of financial regulation. A final summary incorporates expert insights from the workshops.

The project is run in partnership with the European Commission Representation in the UK, whose contribution is kindly acknowledged.