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An economic and monetary union is a single market with a common currency. It is to be distinguished from a mere currency union (e.g. the Latin Monetary Union in the 1800s), which does not involve a single market'. (www.wikipedia.org). What I understand of an Economic and Monetary Union I feel is summarised by the term ‘pooling of policies'. Decisions such as interest rates (monetary) and taxation (fiscal) are grouped and controlled by a single commission acting as one on behalf of all member states/countries. A clear example of this is the European Union (formerly known as the ‘Economic Coal and Steel Community' and also the ‘European Economic Community'). A Monetary Union could also be described as, ‘the permanent fixing of exchange rates between member countries' (Begg & Ward330).

In 1952, five countries signed the Treaty of Paris uniting them on trade fronts. The countries were Belgium, Holland, Luxembourg, Italy and France. From this cohesion of countries, many more......

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