Perspectives for future economic policy coordination within EMU

While rules, procedures and institutions for economic policy-making in EMU have been put in place, their functioning is still open to the tests of reality. The singular mix of a centralized monetary policy and decentralized fiscal (and structural) policies makes coordination procedures a necessity, if an optimal policy mix pursuing the objectives of Art. 2 TEU is to be achieved. Inclusion of social partners into macro-policy coordination, as proposed in the new European Employment Pact, is a necessary complement, if wage policy is to play its role as a 'shock absorber' for asymmetric shocks, but also in order to align policy orientations of all actors. While during the start-up phase of EMU each policy actor focuses on his own independence and autonomy, in the future the everyday task of conducting economic policy will lead to a more pragmatic cooperation by all actors.