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4 Eur. J. Econ. L. & Pol. 1 (2017)

handle is hein.journals/ejelp4 and id is 1 raw text is: 





      Eurozone's Future: The Political Economy of
                    Structural Convergence



                           Antonin   Rusek
               Susquehanna  University, Selinsgrove, USA

Doi: 10.19044/elp.v4nolal URL:http://dx.doi.ore/10.19044/elp.v4nolal

Abstract
       The  progress of  globalization confronts the EU  with the  new
challenges. To answer these, the restoration of growth is the imperative. The
competitiveness and hopefully the real convergence must be restored. Capital
flows are the sine qua non of this development. The key in this endeavor is
the capital markets union, i.e. the set of the structural reforms which will
facilitate the increased activities of the venture capital - the main tool to
create the new economy  of innovation and creativity. But to be successful
the capital markets union has to be complemented structural convergence of
labor markets, business creation environment and taxation. New approaches
like special economic innovation and growth zones may be necessary. To
fully implement  the necessary  structural reforms and the convergence
processes, the cooperation of the private and public sectors on both the EU
and national levels is necessary.

Keywords:   Challenges  of  globalization, structural reforms, structural
convergence.

I. Introduction
       This paper analyzes the issue of the structural convergence in the
Eurozone: the concept, the role, history and the relationship between the
perceived need for this type of a convergence and political and economic
realities.
       The nominal convergence is the key to the functioning of a monetary
union. It determines the effectiveness of monetary policy, especially in the
organization like EMU   (Eurozone),  where  the monetary  centralization
operates in the environment of decentralized fiscal structures, limited fiscal
transfers and a very limited labor mobility. The real convergence is crucial
for the political and social stability, which in turn determines the degree of
commitment  to the preservation of the common endeavor - i.e. the EU itself.


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