Economic and monetary union

An economic and monetary union is a type of trade bloc which is composed of an economic union (common market and customs union) with a monetary union. It is to be distinguished from a mere monetary union (e.g. the Latin Monetary Union in the 19th century), which does not involve a common market. This is the sixth stage of economic integration. EMU is established through a currency-related trade pact. An intermediate step between pure EMU and a complete economic integration is the fiscal union.

List of economic and monetary unions

• Economic and Monetary Union of the European Union (1999/2002) with the Euro for the Eurozone members
• de facto the OECS Eastern Caribbean Currency Union with the East Caribbean dollar in the CSME (2006)^[1]
• de facto Switzerland–Liechtenstein^[2]

Additionally the autonomous and dependent territories, such as some of the EU member state special territories, are sometimes treated as separate customs territory from their mainland state or have varying arrangements of formal or de facto customs union, common market and currency union (or combinations thereof) with the mainland and in regards to third countries through the trade pacts signed by the mainland state.^[3]

Proposed

Community	Currency	Region	Target date	Notes
Economic and Monetary Community of Central Africa (CEMAC)	Central African CFA franc	Africa		not yet functioning common market
West African Economic and Monetary Union (UEMOA)	West African CFA franc	Africa		not yet functioning common market
Gulf Cooperation Council (GCC)	Khaleeji	Middle East		Possibly gold backed, but postponed due to the financial crisis.
East African Community (EAC)	East African shilling	Africa	2015	To be used by the future East African Federation
Caribbean Single Market and Economy (as part of the CARICOM)		Latin America /Caribbean	2015	To supplement the OECS Eastern Caribbean Currency Union
Southern African Customs Union (SACU)	South African Rand	Africa	2015	de facto for the CMA member when the SADC economic union is established
Southern African Development Community (SADC)	South African Rand (interim proposal)	Africa	2016	To supplement or succeed the CMA and Southern Africa Customs Union
South Asian Association for Regional Cooperation		South Asia	2016
Union of South American Nations (UNASUR)	Latino[4]	Latin America /Caribbean	2019
Economic Community of Central African States (ECCAS)		Africa		To supplement the Economic and Monetary Community of Central Africa (CEMAC)
Economic Community of West African States (ECOWAS)		Africa		To succeed UEMOA and WAMZ
African Economic Community		Africa	2028	See African Monetary Union
Union State of Russia and Belarus	Russian ruble	Europe
Arab League	Arab Dinar	Arab states		Arab Dinar has been proposed ever since the creation of the Arab Monetary Fund, expected for serious plans of doing so, after the creation of the proposed Arab Union.

Previous

Stages of economic integration around the World (each country colored according to the most integrated form that it participates with):

  Economic and Monetary Union (CSME/EC$, EU/€, Switzerland–Liechtenstein/CHF)

  Economic union (CSME, EU, EAEU)

  Customs and Monetary Union (CEMAC/XAF, UEMOA/XOF)

  Common market (EEA–Switzerland)

  Customs union (CAN, EAC, EUCU, MERCOSUR, SACU)

  Multilateral Free Trade Area (AFTA, CEFTA, CISFTA, COMESA, EFTA, GAFTA, GCC, NAFTA, SAFTA, SICA)

• Belgium–Luxembourg Monetary Union (1922–2002), superseded by the European EMU

See also

• North American Union and North American Currency Union (Amero)^[5]
• Pacific Union (one proposal for Australian dollar)

References

1. The states participating in both initiatives are Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines.
2. Single market through participation in the internal market of the European Union, customs union since 1924, informal currency union since 1920.
3. EU Overseas countries and some other territories participate partially in the EU single market per part four of the Treaty Establishing the European Community; Some EU Outermost regions and other territories use the Euro of the currency union, others are part of the customs union; some participate in both unions and some in neither.
   Territories of the United States, Australian External Territories and Realm of New Zealand territories share the currency and mostly also the market of their respective mainland state, but are generally not part of its customs territory.
4. Proposed by Ecuador's President Rafael Correa on December 15, 2007
5. Not currently on any political agenda, based mostly off conspiracy theories.

Further reading

• Acocella, N. and Di Bartolomeo, G. and Tirelli, P. [2007], ‘Fiscal leadership and coordination in the EMU’, in: ‘Open Economies Review’, 18(3): 281-9.
• Bergin, Paul (2008). "Monetary Union". In David R. Henderson (ed.). Concise Encyclopedia of Economics (2nd ed.). Indianapolis: Library of Economics and Liberty. ISBN 978-0865976658. OCLC 237794267.

External links

• African monetary union inches closer
• United States of Southern Africa?
• East Africa's first steps towards union
• West Africa opts for currency union
• Gulf States push for single currency
• 'Limited gains' from Gulf single currency
• Do the Mercosur Countries Form an Optimum Currency Area?
• Argentina plans monetary union
• Quadrant Magazine article on the Pacific
• Economist – Antipodean currencies (Australia and New Zealand)
• Three Perspectives on an Australasian Monetary Union
• Reasons for the collapse of the Rouble Zone
• In Search of the "Ruble Zone"
• OECD Development Centre – the Rand Zone
• A single African currency in our time?
• South Africa proposes adoption of the rand as provisional SADC common currency