Adjustment of industry and labour markets to the European Economic and Monetary Union

The member states of the European Communities concluded in Maastricht in the autumn of 1991 the Treaty on European Union, the so-called Maastricht Treaty. The treaty established the European Union. According to the treaty, a central part of the new union will be the Economic and Monetary Union, or EMU. The aim of EMU is to introduce a common currency for the EU and to create a common economic policy at the union level.

The purpose of this study is to map the adjustment needs that the Finnish economy may face as a member of the monetary union — in a situation where there is no possibility of independent monetary and exchange rate policy and where the room for manoeuvre in fiscal policy is also potentially limited. Adjustment to possible self-induced or external shocks is, within EMU, primarily the responsibility of companies and the labour force — the possibilities of public authorities in this regard are quite limited. The study seeks to outline alternative means of adjustment to changes in employment and to assess the possible changes that EMU membership may bring to the structure of industry. (AI translation)

• ISSN: 1236-7176
• ISBN: 951-9282-93-9