Monetary and Fiscal Policy Co‐operation: Institutions and Procedures in EMU

The article analyses the effect of the move to EMU on the procedures through which co‐operation between authorities in charge of budgetary and monetary policy takes place. The first section examines the situation prior to EMU in the Member States on the basis of a questionnaire concerning the modalities of the formal or informal dialogue between the national central banks (NCBs) and the treasuries. The second section takes into consideration the current situation, based on the experience acquired in the first year of EMU and set against the provisions of the Treaty. The comparison between the two situations suggests that something has been lost in the move to EMU, and that there is scope for further improving the dialogue and co‐operation between budgetary and monetary authorities in EMU. Some suggestions are then proposed in order to bring the current euro‐zone situation closer to the one prevailing in most countries prior to EMU.