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Q. Why did the EU countries move away from the EMS toward the goal of a single shared currency?
Answer:
1. To produce a superior degree of European market integration by removing the threat of EMS currency realignments.
2. To decrease German dominance of the EMS monetary policy.
3. Given the shift to complete freedom of capital movements within the EU fixed however adjustable currency parities may possibly lead to ferociously speculative attacks as in 1992 - 1993.
4. To guarantee the political constancy of Europe.
Q. Discuss the effects of the reunification of eastern and western Germany in 1990 on both Germany and its neighboring European countries. Answer: Germany rumbles high interest
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