20 Years of the Euro – a Success Story?

The euro was introduced as book money on 1 January 1999. The European Central Bank had already been established six months earlier. The European Monetary Union has meanwhile survived a number of crises. Problems arose due to the fact that the framework conditions could not be fully met: The Stability and Growth Pact was not properly observed and an orderly state insolvency is not possible within the European Union. These instruments need to be reformed. There have been developments in the last 20 years: Both the monetary policy instruments and the objectives of the European Central Bank have evolved. The unorthodox monetary policy has been a source of controversy and the orientation towards the development of the money supply became less and less important.