Tiêu đề EU Financial services and the Euro policy.pdf ✅

EUROPEAN UNION FINANCIAL SERVICES AND THE EURO POLICY SUMMARY BRIEFING January 2025
European Union Financial services and the Euro policy - January 2025 The European Union's financial policies are designed to ensure economic stability, promote sustainable growth, and protect consumers across Member States. Key initiatives include the Capital Markets Union, which aims to integrate capital markets to facilitate funding and investment, and the Banking Union, established to ensure robust supervision and resilience of EU banks. The EU prioritises sustainable finance to support the European Green Deal, integrating environmental considerations into financial decision-making. Additionally, the EU addresses digital finance advancements, consumer protection in financial services, and the prevention of financial crimes such as money laundering and terrorist financing. Policy evolution & milestones 2 Treaty of Rome Established the European Economic Community (EEC), creating a customs union and fostering economic cooperation among six founding countries. It laid the groundwork for deeper economic integration, eventually leading to monetary union. 1951 Werner Report Proposed a three-stage plan for achieving economic and monetary union (EMU) among EEC Member States. The report emphasised the need for policy coordination and a single currency to stabilise exchange rates. 1970 Named after its lead author, Pierre Werner, then Prime Minister and Finance Minister of Luxembourg. The Werner Report was a precursor to the Maastricht Treaty (1992), which formalised the path toward EMU and led to the introduction of the euro. European Monetary System (EMS) Introduced the Exchange Rate Mechanism (ERM) to stabilise currency fluctuations among Member States. It served as a precursor to the adoption of the euro by aligning monetary policies. 1979 © EU Training | All rights reserved. No part of this publication may be reproduced or shared by any means. © EU Training
Policy evolution & milestones 3 Single European Act Committed to completing the single market, enabling the free flow of goods, services, capital, and people. It marked a key step towards economic harmonisation across Member States. 1986 Maastricht Treaty Formally established the European Union and laid the foundation for the Economic and Monetary Union (EMU). It enshrined convergence criteria for countries wishing to adopt the euro. 1992 Establishment of the European Central Bank (ECB) The ECB was created to oversee monetary policy in the eurozone and ensure price stability. It became the cornerstone institution managing the single currency. 1998 Launch of the Euro (Virtual) The euro was introduced as a virtual currency for electronic payments and financial transactions. This marked the first step toward its adoption as legal tender. 1/1 1999 Euro Cash Circulation Euro banknotes and coins replaced national currencies in participating Member States. It became the world’s second-largest reserve currency after the US dollar. 1 /2 2002 Reform of the Stability and Growth Pact (SGP) Fiscal rules were reformed to balance flexibility with the need for fiscal discipline. The reforms aimed to accommodate Member States during economic downturns without compromising stability. 2005 European Union Financial services and the Euro policy - January 2025 © EU Training | All rights reserved. No part of this publication may be reproduced or shared by any means. © EU Training
Policy evolution & milestones 4 Global Financial Crisis and Sovereign Debt Crisis The crises exposed vulnerabilities in eurozone economies, prompting the creation of financial mechanisms like the EFSF and ESM. These tools provided emergency assistance and strengthened financial governance. 2008 –2012 Fiscal Compact (Treaty on Stability, Coordination and Governance) Introduced stricter fiscal rules requiring balanced budgets and automatic correction mechanisms. This reinforced the EU’s commitment to fiscal sustainability and economic stability. 2012 Banking Union The Banking Union established the Single Supervisory Mechanism (SSM) and Single Resolution Mechanism (SRM). These tools were designed to safeguard financial stability and prevent future banking crises. 2014 Capital Markets Union (CMU) Initiative Launched to create a single capital market in the EU, enabling businesses to access diverse funding sources. It aimed to reduce reliance on bank financing and boost cross-border investment. 2015 NextGenerationEU Fund The EU launched its largest financial recovery package to address the economic impact of COVID-19. It provided grants and loans financed through joint EU borrowing to support Member States. 2020 European Union Financial services and the Euro policy - January 2025 © EU Training | All rights reserved. No part of this publication may be reproduced or shared by any means. © EU Training