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74-756: OMT is considered by the European Central Bank once a Eurozone government asks for financial assistance. The Eurozone has established the European Stability Mechanism and the European Financial Stability Facility bailout funds in order to meet the challenges of the European debt crisis . From these funds and through OMT, the Eurozone's central bank can, henceforth, buy government-issued bonds that mature in 1 to 3 years, provided

148-446: A bluff, in the sense that nobody knows what would happen if OMT were actually required". Post-Keynesian economists have expressed their doubts about OMT's effectiveness in dealing with the European debt crisis , some arguing that the program will "fail", because "it doesn't address the core problem – that southern Europe is in depression and the only way out [of it] is for budget deficits to expand." An ECB working paper evaluated

222-501: A country was to run a deficit, they would have to justify it to the rest of the EU while countries with a debt more than 60% of GDP would face greater scrutiny. The plans would apply to all EU members, not just the eurozone, and have to be approved by EU leaders along with proposals for states to face sanctions before they reach the 3% limit in the Stability and Growth Pact . Poland has criticised

296-666: A day before a meeting of the Economic and Financial Affairs Council (Ecofin) of the Council of the European Union . The Group is not an official Council formation but when the full EcoFin council votes on matters only affecting the eurozone, only Euro Group members are permitted to vote on it. Since the global financial crisis of 2007–2008 , the Euro Group has met irregularly not as finance ministers, but as heads of state and government (like

370-547: A fiscal union in the eurozone can mitigate devastating effects of the single currency on the eurozone peripheral countries. But he adds that the currency bloc will not work perfectly even if a fiscal transfer system is built, because, he argues, the fundamental issue about competitiveness adjustment is not tackled. The problem is, since the eurozone peripheral countries do not have their own currencies, they are forced to adjust their economies by decreasing their wages instead of devaluation. The financial crisis of 2007–2008 prompted

444-512: A minimum of two years without the presence of "severe tensions" for the currency exchange rate. In September 2011, a diplomatic source close to the euro adoption preparation talks with the seven remaining new member states who had yet to adopt the euro at that time (Bulgaria, the Czech Republic, Hungary, Latvia, Lithuania, Poland, and Romania), claimed that the monetary union (eurozone) they had thought they were going to join upon their signing of

518-583: A new stricter version of the Stability and Growth Pact , signed on 2 March 2012 by all member states of the European Union (EU), except the Czech Republic, the United Kingdom, and Croatia (subsequently acceding the EU in July 2013). The treaty entered into force on 1 January 2013 for the 16 states which completed ratification prior of this date. As of 1 April 2014, it had been ratified and entered into force for all 25 signatories. Olivier Blanchard suggests that

592-558: A number of reforms in the eurozone. One was a U-turn on the eurozone's bailout policy that led to the creation of a specific fund to assist eurozone states in trouble. The European Financial Stability Facility (EFSF) and the European Financial Stability Mechanism (EFSM) were created in 2010 to provide, alongside the International Monetary Fund (IMF), a system and fund to bail out members. However,

666-501: A person. You have to give people the freedom of choice if they want to continue working after their 65th [birthday], end of story. I understand those who feel exhausted and quit, but I wanted to continue functioning academically and this wasn't an option here [in Belgium]. In May 2013, De Grauwe was awarded the Arkprijs van het Vrije Woord (Ark Prize of Free Speech). He is also a fellow of

740-606: A preliminary ruling, the German Constitutional Court expressed doubts about the legality of OMT under German and EU law . In January 2015, an Advocate General Opinion stated that the programme is in principle compatible with Treaty on the Functioning of the European Union. ECJ made its final ruling of the case in June 2015, declaring the conditional "OMT program" to be legal, as it due to its attached conditions "does not exceed

814-455: A result of the financial crisis of 2007–2008 . In Iceland, there was an increase in interest in joining the European Union, a pre-condition for adopting the euro. However, by 2010 the debt crisis in the eurozone caused interest from Poland, as well as the Czech Republic, Denmark and Sweden to cool. In the opinion of journalist Leigh Phillips and Locke Lord 's Charles Proctor, there is no provision in any European Union treaty for an exit from

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888-439: A solution to the issues related to natural resources, energy, environment and climate. However, De Grauwe has recently pointed out the necessity of government in this market economy. He said he used to uphold financial markets as bearers of the truth but now acknowledges that it is a world where rationality is intertwined with emotions. In an interview, he stated that certain entities are needed to correct market forces. Because of

962-723: Is a Belgian economist and John Paulson Professor in European Political Economy at the London School of Economics and Political Science as head of the European Institute. He is also professor emeritus in international economics at KU Leuven and former member of the Belgian Federal Parliament . De Grauwe went to High School in the Klein Seminarie Roeselare, and studied economics at

1036-482: Is common representation, a common political agenda should be agreed upon. Leading EU figures including the commission and national governments have proposed a variety of reforms to the eurozone's architecture; notably the creation of a Finance Minister, a larger eurozone budget, and reform of the current bailout mechanisms into either a "European Monetary Fund" or a eurozone Treasury . While many have similar themes, details vary greatly. The 20 largest economies in

1110-499: Is empowered to decide on the start, continuation and suspension of Outright Monetary Transactions, "in full discretion and acting in accordance with its monetary policy mandate". For the OMT to be activated towards a certain eurozone state, a total of four conditions need to be fully met: OMT operations end once "their objectives are achieved" or when there is non-compliance with the macroeconomic adjustment or precautionary programme. During

1184-454: Is entitled to authorise the design and printing of euro banknotes and the volume of euro coins minted, and its president is currently Christine Lagarde . The eurozone is represented politically by its finance ministers, known collectively as the Eurogroup , and is presided over by a president, currently Paschal Donohoe . The finance ministers of the EU member states that use the euro meet

1258-496: Is legally exempt from joining the eurozone unless its government decides otherwise, either by parliamentary vote or referendum . The United Kingdom likewise had an opt-out prior to withdrawing from the EU in 2020. The remaining six countries are obliged to adopt the euro in future, although the EU has so far not tried to enforce any time plan. They should join as soon as they fulfill the convergence criteria, which include being part of ERM II for two years. Sweden , which joined

1332-512: Is political and in a state of flux in terms of what further provisions will be agreed for eurozone change. No eurozone member state has left, and there are no provisions to do so or to be expelled. In 1998, eleven member states of the European Union had met the euro convergence criteria , and the eurozone came into existence with the official launch of the euro (alongside national currencies) on 1 January 1999 in those countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg,

1406-557: Is responsible for fiscal and monetary cooperation between eurozone and non-eurozone EU members. The European Central Bank (ECB) makes monetary policy for the eurozone, sets its base interest rate , and issues euro banknotes and coins. Since the financial crisis of 2007–2008 , the eurozone has established and used provisions for granting emergency loans to member states in return for enacting economic reforms. The eurozone has also enacted some limited fiscal integration ; for example, in peer review of each other's national budgets. The issue

1480-546: Is the author of The Economics of Monetary Union , which was translated in ten languages. From December 2011 until May 2012, De Grauwe served as member of the Jacques Delors Institute ’s Tommaso Padoa-Schioppa group, a high-level expert group to reflect on the reform of the Economic and Monetary Union of the European Union . In 2012, De Grauwe reached the legal age for mandatory retirement in Belgium, after which he

1554-542: Is to not exceed 60%. The primary means for fiscal coordination within the EU lies in the Broad Economic Policy Guidelines which are written for every member state, but with particular reference to the 20 current members of the eurozone. These guidelines are not binding, but are intended to represent policy coordination among the EU member states, so as to take into account the linked structures of their economies. For their mutual assurance and stability of

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1628-808: The Catholic University of Leuven from 1964 until 1969. Having received a scholarship from the Belgian Fulbright Commission , De Grauwe obtained his PhD degree at Johns Hopkins University in 1973. He started to work as an intern at the European Economic Community in 1969 and later went on to become a research assistant, and subsequently a professor at the Center for Economic Studies of the Katholieke Universiteit Leuven. In 1973 De Grauwe began to work as an economist at

1702-688: The Catholic University of Portugal , the Board of Governors of the Federal Reserve System , University of Amsterdam , Humboldt University of Berlin , and Università Cattolica del Sacro Cuore . In addition, De Grauwe has been given doctoral honorary degrees at the University of St Gallen , the university of Valencia , the Turku School of Economics and Business Administration and the University of Genoa . During 1991-1995 and 1999-2003, Paul De Grauwe

1776-664: The Czech Republic , Denmark , Hungary , Poland , Romania , and Sweden ) are EU members but do not use the euro. Before joining the eurozone, a state must spend at least two years in the European Exchange Rate Mechanism (ERM II). As of January 2023, the central bank of Denmark and the Bulgarian central bank participate in ERM II. Denmark obtained a special opt-out in the original Maastricht Treaty , and thus

1850-575: The European Economic Association . As a liberal and advocate of the free market De Grauwe has long time been a strong proponent of the market economy and globalisation . In De onvoltooide globalisering ( The Uncompleted Globalisation ), written for a broader audience, he explains why he favors globalisation and discusses the statements of anti-globalists , which he finds somewhat pessimistic. He sees himself as an optimist and believes that market forces and economic growth will offer

1924-847: The European Monetary System with its Exchange Rate Mechanism and the related new common currency ECU . On 1 January 1999, the euro replaced the ECU ;1:1 at the exchange rate markets. During 1979–1999, the Deutsche Mark functioned as a de facto anchor for the ECU, meaning there was only a minor difference between pegging a currency against the ECU and pegging it against the Deutsche Mark. Sources: EC convergence reports 1996-2014 , Italian lira , Spanish peseta , Portuguese escudo , Finnish markka , Greek drachma , Sterling The eurozone

1998-713: The German Federal Constitutional Court by members of the German Bundestag , including German politician Peter Gauweiler , and by the German political party Die Linke . The German Constitutional Court requested a preliminary ruling from the European Court of Justice (ECJ) concerning the compatibility of the OMT decision with the Treaty on the Functioning of the European Union (Case C-62/14). In its request for

2072-512: The IMF as a bloc, rather than each member state separately: "It is absurd for those 15 countries not to agree to have a single representation at the IMF. It makes us look absolutely ridiculous. We are regarded as buffoons on the international scene". In 2017 Juncker stated that he aims to have this agreed by the end of his mandate in 2019. However, Finance Commissioner Joaquín Almunia stated that before there

2146-926: The International Monetary Fund and accepted positions at the Centre for European Policy Studies and the European Central Bank . He has also been professor at the College of Europe , the Free University of Berlin , and the Norwegian School of Management . Furthermore, he has been a visiting scholar at the University of Michigan , Tilburg University , the Wharton School of the University of Pennsylvania , University of Kiel , Bank of Japan , Université libre de Bruxelles , University of Saarbrücken , Ghent University ,

2220-398: The main refinancing operations were variable rate tenders, as opposed to fixed rate tenders. The figures indicated in the table from 2000 to 2008 refer to the minimum interest rate at which counterparties may place their bids. [REDACTED] The following table states the ratio of public debt to GDP in percent for eurozone countries given by EuroStat. The euro convergence criterion

2294-572: The Council of Ministers had not voted to fine those states. Subsequently, reforms were adopted to provide more flexibility and ensure that the deficit criteria took into account the economic conditions of the member states, and additional factors. The Fiscal Compact (formally, the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union), is an intergovernmental treaty introduced as

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2368-559: The Dutch government, favour the creation of an expulsion provision for the case whereby a heavily indebted state in the eurozone refuses to comply with an EU economic reform policy. In a Texas law journal, University of Texas at Austin law professor Jens Dammann has argued that even now EU law contains an implicit right for member states to leave the eurozone if they no longer meet the criteria that they had to meet in order to join it. Furthermore, he has suggested that, under narrow circumstances,

2442-512: The EFSF and EFSM were temporary, small and lacked a basis in the EU treaties. Therefore, it was agreed in 2011 to establish a European Stability Mechanism (ESM) which would be much larger, funded only by eurozone states (not the EU as a whole as the EFSF/EFSM were) and would have a permanent treaty basis . As a result of that its creation involved agreeing an amendment to TEFU Article 136 allowing for

2516-539: The ESM and a new ESM treaty to detail how the ESM would operate. If both are successfully ratified according to schedule, the ESM would be operational by the time the EFSF/EFSM expire in mid-2013. In February 2016, the UK secured further confirmation that countries that do not use the Euro would not be required to contribute to bailouts for eurozone countries. In June 2010, a broad agreement

2590-485: The EU have adopted the euro, with France ensuring eurozone laws are implemented: The euro is also used in countries outside the EU. Four states (Andorra, Monaco, San Marino, and Vatican City) have signed formal agreements with the EU to use the euro and issue their own coins. Nevertheless, they are not considered part of the eurozone by the ECB and do not have a seat in the ECB or Euro Group. Akrotiri and Dhekelia (located on

2664-491: The EU are Bulgaria , the Czech Republic , Denmark , Hungary , Poland , Romania , and Sweden . They continue to use their own national currencies, although all but Denmark are obliged to join once they meet the euro convergence criteria . Among non-EU member states, Andorra , Monaco , San Marino , and Vatican City have formal agreements with the EU to use the euro as their official currency and issue their own coins. In addition, Kosovo and Montenegro have adopted

2738-645: The EU in 1995 after the Maastricht Treaty was signed, is required to join the eurozone. However, the Swedish people turned down euro adoption in a 2003 referendum and since then the country has intentionally avoided fulfilling the adoption requirements by not joining ERM II, which is voluntary. Bulgaria joined ERM II on 10 July 2020. Interest in joining the eurozone increased in Denmark, and initially in Poland, as

2812-492: The EU in 2013 , adopted the euro in 2023. All new EU members joining the bloc after the signing of the Maastricht Treaty in 1992 are obliged to adopt the euro under the terms of their accession treaties. However, the last of the five economic convergence criteria which need first to be complied with in order to qualify for euro adoption, is the exchange rate stability criterion, which requires having been an ERM-member for

2886-434: The European Central Bank to enact OMT operations was not adopted unanimously, with the German representative voting against it. Germany's Central Bank president Jens Weidmann , along with German economy minister Philipp Roesler had expressed their opposition to ECB's bond-buying plan, arguing that it might erode "the willingness of Eurozone member-states to implement reforms". The OMT decision has also been challenged in

2960-535: The European Council). It is in this forum, the Euro summit , that many eurozone reforms have been decided upon. In 2011, former French President Nicolas Sarkozy pushed for these summits to become regular and twice a year in order for it to be a 'true economic government'. In April 2008 in Brussels , future European Commission President Jean-Claude Juncker suggested that the eurozone should be represented at

3034-653: The European Union , the Council of the European Union addressed the monetary agreements France had with the CFA Zone and Comoros, and ruled that the ECB had no obligation towards the convertibility of the CFA and Comorian francs . The responsibility of the free convertibility remained in the French Treasury . Kosovo and Montenegro unilaterally adopted the euro as their sole currency without an agreement and, therefore, have no issuing rights. These states are not considered part of

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3108-670: The European Union can expel member states from the eurozone. The monetary policy of all countries in the eurozone is managed by the European Central Bank (ECB) and the Eurosystem which comprises the ECB and the central banks of the EU states who have joined the eurozone. Countries outside the eurozone are not represented in these institutions. Whereas all EU member states are part of the European System of Central Banks (ESCB), non EU member states have no say in all three institutions, even those with monetary agreements such as Monaco. The ECB

3182-444: The European Union should instead focus on decentralisation as it has “gone too far in centralising power”. In 2018, a study based on DiD methodology found that the adoption of euro produced no systematic growth effects, as no growth-enhancing effects were found when compared to European economies outside the eurozone. Paul De Grauwe Paul De Grauwe ( Dutch pronunciation: [ˈpʌul də ˈɣrʌuə] ; born 18 July 1946)

3256-572: The Netherlands, Portugal, and Spain. Greece qualified in 2000 and was admitted on 1 January 2001. These twelve founding members introduced physical euro banknotes and euro coins on 1 January 2002. After a short transition period, they took out of circulation and rendered invalid their pre-euro national coins and notes. Between 2007 and 2023, eight new states have acceded: Croatia, Cyprus, Estonia, Latvia, Lithuania, Malta, Slovakia, and Slovenia. Three French dependent territories that are not part of

3330-445: The US since 1982. Concerning fiscal policies, 12% of the US federal budget is used for transfers to states and local governments. The US government does not impose restrictions on state budget policies, whereas the Treaty of Maastricht requires each eurozone member country to keep its budget deficit below 3% of its GDP. In 2008, a study by Alberto Alesina and Vincenzo Galasso found that

3404-419: The accession treaty may very well end up being a very different union, entailing a much closer fiscal, economic, and political convergence than originally anticipated. This changed legal status of the eurozone could potentially cause them to conclude that the conditions for their promise to join were no longer valid, which "could force them to stage new referendums" on euro adoption. Seven countries ( Bulgaria ,

3478-607: The adoption of euro promoted market deregulation and market liberalization . Furthermore, the euro was also linked to wage moderation, as wage growth slowed down in countries that adopted the new currency. Oliver Hart , who received the Nobel Memorial Prize in Economic Sciences in 2016, criticized the euro, calling it a "mistake" and emphasising his opposition to monetary union since its inception. He also expressed opposition to European integration , arguing that

3552-516: The announcement of the ECB in the second half of 2012 government bond spreads within the Eurozone went down considerably. According to economics professor Paul De Grauwe , economist Yuemei Ji and researchers at the Cass Business School , this decline can be mainly attributed to OMT, making the sheer announcement of the program effective in its own right. At the same time, as Paul Krugman notes, "the ECB's efforts rely to an important extent on

3626-673: The bank will be reabsorbing the money pumped into the system "by any means necessary". In practice, the only means of sterilisation used has been the auctioning of sufficient quantities of one-week deposits at the ECB – the same means of sterilisation that the ECB used for its previous bond-buying programme, the SMP. On 2 August 2012, the Governing Council of the European Central Bank (ECB) announced that it would undertake outright transactions in secondary , sovereign bond markets, aimed "at safeguarding an appropriate monetary policy transmission and

3700-435: The bond-issuing countries agree to certain domestic economic measures – the latter being the so-called term of "conditionality". The aim of the program is then to prevent divergence in short-term bond yields, and to ensure that the ECB's monetary policy is transmitted equally to all the Eurozone's member economies. The central bank notes that the OMT is meant as a means to "safeguard an appropriate monetary policy transmission and

3774-412: The currency, members of the eurozone have to respect the Stability and Growth Pact , which sets agreed limits on deficits and national debt , with associated sanctions for deviation. The Pact originally set a limit of 3% of GDP for the yearly deficit of all eurozone member states; with fines for any state which exceeded this amount. In 2005, Portugal, Germany, and France had all exceeded this amount, but

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3848-619: The deficit or the debt rules. In 1997, Arnulf Baring expressed concern that the European Monetary Union would make Germans the most hated people in Europe. Baring suspected the possibility that the people in Mediterranean countries would regard Germans and the currency bloc as economic policemen. In 2001, James Tobin thought that the euro project would not succeed without making drastic changes to European institutions, pointing out

3922-497: The difference between the US and the eurozone. Concerning monetary policies, the system of Federal Reserve banks in the US aims at both growth and reducing unemployment, while the ECB tends to give its first priority to price stability under the Bundesbank 's supervision. As the price level of the currency bloc is kept low, the unemployment level of the region has become higher than that of

3996-721: The efficacy of OMT policies. That paper found that such policies "decreased the Italian and Spanish two-year government bond yields by about two percentage points, while leaving unchanged the bond yields of the same maturity in Germany and France". Moreover, "the scenario analysis suggests that the reduction in bond yields due to OMT announcements is associated with a significant increase in real activity, credit, and prices in Italy and Spain with relatively muted spillovers in France and Germany." The decision of

4070-407: The euro unilaterally, relying on euros already in circulation rather than minting currencies of their own. These six countries, however, have no representation in any eurozone institution. The Eurosystem is the monetary authority of the eurozone, the Eurogroup is an informal body of finance ministers that makes fiscal policy for the currency union, and the European System of Central Banks

4144-413: The eurozone by the ECB. However, sometimes the term eurozone is applied to all territories that have adopted the euro as their sole currency. Further unilateral adoption of the euro ( euroisation ), by both non-euro EU and non-EU members, is opposed by the ECB and EU. The chart below provides a full summary of all applying exchange-rate regimes for EU members , since the birth, on 13 March 1979, of

4218-406: The eurozone should be included in the relevant treaties. On the issue of leaving the eurozone, the European Commission has stated that "[t]he irrevocability of membership in the euro area is an integral part of the Treaty framework and the Commission, as a guardian of the EU Treaties, intends to fully respect [that irrevocability]." It added that it "does not intend to propose [any] amendment" to

4292-447: The eurozone. In fact, they argued, the Treaties make it clear that the process of monetary union was intended to be "irreversible" and "irrevocable". However, in 2009, a European Central Bank legal study argued that, while voluntary withdrawal is legally not possible, expulsion remains "conceivable". Although an explicit provision for an exit option does not exist, many experts and politicians in Europe have suggested an option to leave

4366-494: The first year, after the new OMT instrument had been born, it was never used. Yet, it was evaluated to have delivered a significant positive impact to solve the problem with a broken monetary transaction mechanism, resulting in some more fairly priced interest rate levels for states under sovereign financial support programmes from EFSF/ESM. Because, as a member of the Executive Board of the ECB, Benoît Cœuré , described it OMTs are an insurance device against redenomination risk, in

4440-444: The idea of withholding regional funding for those who break the deficit limits, as that would only impact the poorer states. In June 2010 France agreed to back Germany's plan for suspending the voting rights of members who breach the rules. In March 2011 was initiated a new reform of the Stability and Growth Pact aiming at straightening the rules by adopting an automatic procedure for imposing of penalties in case of breaches of either

4514-444: The island of Cyprus) belong to the United Kingdom, but there are agreements between the United Kingdom and Cyprus and between United Kingdom and EU about their partial integration with Cyprus and partial adoption of Cypriot law, including the usage of euro in Akrotiri and Dhekelia. Several currencies are pegged to the euro, some of them with a fluctuation band and others with an exact rate. The Bosnia and Herzegovina convertible mark

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4588-474: The money, macro and international finance research network of CESifo at the University of Munich . He has had a column in the Financial Times . Belgian media often make use of his expertise when dealing with current economic affairs, primarily with regard to European economic and monetary issues. Besides hundreds of scientific articles, he has published various books as well. Furthermore, he is co-editor and author of economic textbooks in both Dutch and English. He

4662-493: The powers of the ECB in relation to monetary policy and does not contravene the prohibition of monetary financing of EU nations" . Eurozone The euro area , commonly called the eurozone ( EZ ), is a currency union of 20  member states of the European Union (EU) that have adopted the euro ( € ) as their primary currency and sole legal tender , and have thus fully implemented EMU policies. The 20 eurozone members are: The seven non-eurozone members of

4736-431: The relevant Treaties, the current status being "the best way going forward to increase the resilience of euro area Member States to potential economic and financial crises. The European Central Bank , responding to a question by a Member of the European Parliament , has stated that an exit is not allowed under the Treaties. Likewise there is no provision for a state to be expelled from the euro. Some, however, including

4810-478: The sense of reducing the probability attached to worst-case scenarios. As for any insurance mechanism, OMTs face a trade-off between insurance and incentives, but their specific design was effective in aligning ex-ante incentives with ex-post efficiency. At the end of 2014, the group of states eligible to receive OMT support were only Portugal and Ireland . As none of them, however, had met the fourth condition for support (suffering from distressed interest rates upon

4884-456: The singleness of the monetary policy". Interventions through the program are stipulated to be potentially limitless. Outright Monetary Transactions are not the same as quantitative easing (QE) operations, since, in the latter, the central banks buy bonds and, by doing so, inject liquidity into the banking system, with the aim of stimulating economic activity. The ECB has made clear that the principle of "full sterilisation " will apply, whereby

4958-403: The singleness of the monetary policy". The technical framework of these operations was formulated on 6 September 2012. The program was adopted with near unanimity, the President of the Bundesbank being the sole vote against. On the same date, the bank's Securities Markets Programme (SMP) was terminated. European Central Bank president Mario Draghi has stated that the bank's Governing Council

5032-412: The time of their regain of complete access to private lending markets), still no OMTs had been activated by ECB. The next states presumed to have been potential candidates to receive OMT were Greece (expected to regain "complete access to lending markets" in 2015 but did not at that time) and Cyprus (also expected to regain complete access to lending markets in 2015 and also did not make it). Following

5106-412: The world including eurozone as a single entity, by nominal GDP (2020) at their peak level of GDP in billions US$ . The values for EU members that are not also eurozone members are listed both separately and as part of the EU. HICP figures from the ECB, overall index: Interest rates for the eurozone, set by the ECB since 1999. Levels are in percentages per annum. Between June 2000 and October 2008,

5180-433: Was a member of the Belgian Senate , and from 1995 until 1999 he became a member of parliament in the Belgian Chamber of Representatives . In both houses of parliament he was part of the Flemish Liberals and Democrats . He is editor of various economic academic journals and a former member of the Group of Economic Policy Analysis advising the European Commission President José Manuel Barroso , as well as director of

5254-487: Was born with its first 11 member states on 1 January 1999. The first enlargement of the eurozone , to Greece, took place on 1 January 2001, one year before the euro physically entered into circulation. The next enlargements were to states which joined the EU in 2004 , and then joined the eurozone on 1 January of the year noted: Slovenia in 2007, Cyprus in 2008, Malta in 2008, Slovakia in 2009, Estonia in 2011, Latvia in 2014, and Lithuania in 2015. Croatia, which acceded to

5328-489: Was finally reached on a controversial proposal for member states to peer review each other's budgets prior to their presentation to national parliaments . Although showing the entire budget to each other was opposed by Germany, Sweden and the UK, each government would present to their peers and the Commission their estimates for growth, inflation, revenue and expenditure levels six months before they go to national parliaments. If

5402-475: Was offered the John Paulson Chair in European Political Economy at the London School of Economics and Political Science and retired from his position at the University of Leuven. He has expressed his discontent with the legal retirement age: I felt disparaged, like an old machine in a factory. Our [Belgian] legislation says: "you have become economically worthless," but I also felt struck in my identity as

5476-644: Was once pegged to the Deutsche mark at par, and continues to be pegged to the euro today at the Deutsche mark's old rate (1.95583 per euro). The Bulgarian lev was initially pegged to the Deutsche Mark at a rate of BGL 1000 to DEM 1 in 1997, and has been pegged at a rate of BGN 1.95583 to EUR 1 since the introduction of the euro and the redenomination of the lev in 1999. The West African and Central African CFA francs are pegged exactly at 655.957 CFA to 1 EUR. In 1998, in anticipation of Economic and Monetary Union of

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