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Is European Monetary Union desirable? Pascal Salin, of the Univeristy of Paris, argues that any system of fixed exchange rates such as the EMS Exchange Rate Mechanism, is likely to prove unsatisfactory.

Hopkin, B. ; Reddaway, B.: Heading for breakdown. - S. 239-243. Holtham, G.: The Maastricht conception of EMU is obsolete. - S. 244-248. Palmer, J.: Wanted: A compelling vision. - S. 249-252. Radice, G.: The case for a single currency. - S. 252-256. Wolf, M.: Why European integration cannot be built on EMU. - S. 256-260

Establishing a single currency will launch the EU on a journey into the unknown. Thus while it is widely accepted that the fall-out from this decision will be far-reaching, little consensus exists on the impact on particular policy arenas. This article explores some of the main implications of monetary union for Social Europe-national systems of welfare pro vision and employment regulation. It is argued that efforts by virtually all the member states to meet the Maastricht criteria for joining the single currency club are impacting negatively on Social Europe. Moreover, with the member states signing a deflation-oriented Stability Pact, this cold climate threatens to spill over into the actual operation of the new Euro- zone. Thus the road to monetary union paved by Europe's political elite spells bad news for already beleaguered welfare and employment systems. At the same time, the article argues that a different form of monetary union is necessary to create more robust macroeco nomic foundations to Social Europe. At present, it is suggested that a big coordination deficit has emerged inside the European economy, causing an inhospitable environ ment for the social dimension in the absence of a single currency. Thus retreating to national mechanisms for economic management is rejected as an alternative project to the Maastricht plan for monetary union. Finally, the article investigates the viability of various reform paths to make the new Euro-zone more socially friendly.

Inflation differentials in Europe have narrowed substantially since the inception of the European Monetary System in 1979. However, their persistence after more than a decade raises the question of why these differentials are so difficult to eliminate. Some European Community countries systematically use seignorage—financing government expenditures with money creation—while others do not. This increases the difficulty of achieving the convergence of monetary policies and inflation rates required for irrevocably fixed exchange rates in Europe. This paper, utilizing a model of government finance that minimizes the social cost of financing government expenditures, examines monetary finance in the European Community. It rejects soundly the social cost minimization model of seignorage collection.

Die wirtschaftliche Abhängigkeit Weißrußlands von Rußland, insbesondere im Energieträgerbereich, hat konservative Politiker in Belarus dazu bewogen, für einen Verbleib in der Rubelzone und eine Wirtschaftsunion mit Rußland zu plädieren. Während weißrussische Kritiker der am 12. April 1994 vereinbarten Währungsunion der beiden Länder einen Souveränitätsverlust des Landes befürchten, erwarten russische Kritiker des Vertrages demgegenüber einen Anstieg der Inflation in Rußland, da Weißrußland nicht im gleichen konsequenten Maße wie Rußland seine Wirtschaftsreformen betreibe. Wirtschaftliche Konzessionen beim Zustandekommen der Währungsunion scheinen im wesentlichen von weißrussischer Seite gekommen zu sein. (BIOst-Mrk)