| dc.description.abstract | The European Union (EU) emerged with the Treaty of Paris (1952) and the Treaty
of Rome (1957) for the re-strengthening of Europe following WWII. The union,
which was initially established as an economic union, namely, EEC, has been developed, expanded, and deepened over time, and became political with the Maastricht Treaty in 1992. The Maastricht Treaty, signed in 1992, transferred the power
to create money to the European Central Bank (ECB). Thus, as of 2002, Euro
banknotes and coins were released into circulation and the Eurozone was established. A common currency in Europe has created the money that member countries cannot create themselves. The ECB ensured a very low inflation rate within
the Eurozone by implementing a tight monetary policy since the date it was established. Despite the monetary union, the targeted political unity has not been
achieved. The most important reason underlying this involves both the system
and the structure of the monetary union. Because national autonomy exists and
responsibility is assumed by political finance. Accordingly, the member countries
borrow in a currency that they cannot create. On the one hand, the ECB has to
purchase government bonds during the debt crisis. On the other hand, the ECB
becomes more and more the “lender of last resort” in this regard. This role is not
in compliance with its legal basis. | en_US |
