Spatial Implications of the European Monetary Union

With the beginning of the year 1999, a further important step towards deeper integration of Europe took place: The European Monetary Union (EMU) was put into force. Undoubtedly, this has, beside other effects, also considerable effects on the economic geography of the integrating area. Possible and probable spatial effects of EMU was the motive to establish an international working group within the ARL-DATAR (Délégation à l’Aménagement du Territoire et à l’Action Régionale) cooperation agreement in order to shed some light on these effects. The present volume consists of papers having been elaborated by members of the working group. Considerations are made with regard to consequences for the regions of a changed relationship in which countries being members of the eurozone stand to each other, macroeconomic consequences for regions of their being a member of EMU, effects of the possible concentration of industrial activities in regions and of trends towards specialisation of regions in certain industries, effects of EMU using a multiregional general equilibrium model, distinguishing between static and dynamic effects of the Euro. Based on these deliberations recommendations are formulated and spatial orientated policy conclusions are given even though one fear seems to be unfounded: the aim of territorial cohesion in the EU seems not to be touched systematically by the common currency in a negative way.