The Euro Area is ten years old. This major new reappraisal by some of the world's leading scholars examines the effects of the new European single currency on the member states of the European Union in its first decade.

Over the first ten years of its existence, the euro has proved to be more than a powerful symbol of collective identity. It has provided price stability to previously inflation-prone countries; it has offered a shelter against currency crises; and it has by and large been conducive to budgetary discipline. The eurozone has attracted five new members in addition to the initial eleven, and many countries in Europe wish to adopt it. The euro has also been successful internationally. Even though research presented in this volume confirms that it has not rivaled the dollar's world currency status, it has certainly become a strong regional currency in Europe and the Mediterranean region. Some countries in the region have de facto adopted it, several peg to it, and many have become at least partially euroized. However, the euro's impressive first decade is likely to be followed by a much more difficult period. The present financial crisis is posing at least two important challenges: real economic adjustment within the euro area and maintenance of fiscal and financial stability without a central government authority capable of taking appropriate financial and fiscal decisions in difficult times. The papers and remarks in this volume demonstrate that the euro has proved to be attractive as a fair weather currency for countries and investors well beyond its borders. But it remains to be seen whether it is equipped to also succeed as a stormy weather currency.

With Economic and Monetary Union (EMU) the European Union is embarked on a major historic political project of formidable technical complexity. In January 2009 the Euro Area will be ten years old. What does the evidence from the first decade tell us about the significance of the euro for the EU and its member states? This book brings together a range of recognized academic specialists to examine the main political aspects of this question. How, and in what ways, has the euro Europeanized states (members and non-members), their institutions, policies and politics? What have been its effects on the location and use of power? Has the euro generated convergence or divergence? What political patterns can be identified? The book offers the first, in-depth and systematic political analysis of the first decade of the euro. It places the euro in its global and European contexts; offers a set of case studies of its effects on a representative sample of EU member states ('Anglo-Saxon', old 'D-Mark Zone', east central European and Baltic, Mediterranean, and Nordic); and looks at three key sectors (financial markets, wages and collective bargaining, and welfare reform). The book contributes to Europeanization studies, comparative political economy, and studies of Economic and Monetary Union (EMU). It will be of major interest to students of the European Union and European integration, comparative European politics, and area and 'country' studies.

Coming at a critical juncture for the euro, the book takes stock of the ECB's experience during its first ten years and discusses the way ahead. The articles are written by well-known experts in the field and provide the reader with a comprehensive overview of relevant policy issues, including the ECB’s communication and its monetary strategy and instruments.