Chapter 17: Economic and Monetary Policy

The acquis in the area of economic and monetary policy contains specific rules requiring the independence of central banks in Member States, prohibiting direct financing of the public sector by the central banks and prohibiting privileged access of the public sector to financial institutions.

Alignment with the principle of open market economy based on free competition, single currency policy and price stabilisation targets constitute also a basis of this chapter. The framework for coordination in the area of economic and monetary policy is set by the Economic and Monetary Union (EMU), which expects from Member States to harmonise their economic policies gradually. Member States are also subject to the Stability and Growth Pact on fiscal surveillance. Candidate countries on the other hand are expected to accept the Euro as their currency unit after accession by achieving alignment with the Maastricht convergence criteria. Until then, they will participate in the Economic and Monetary Union as a Member State with a derogation from the use of the euro and shall treat their exchange rates as a matter of common concern.