EURO – before ysterday, yesterday, today, tomorrow …

International economic integration One of the most characteristic phenomena of the modern global economy is the trend towards international economic integration, e.g. through the formation of international integration groupings. The most advanced form of economic integration is the European Union. Institutional and organisational forms generally accompanying the processes of international economic integration include: Free trade area – the elimination of customs duties and quantitative restrictions on trade between the member countries of a given grouping, with these countries retaining full autonomy over customs and trade policy in their trade relations with countries outside the zone. Customs union – the elimination of customs duties and quantitative restrictions on trade between member countries of a given grouping, with the simultaneous introduction by these countries of a common external tariff and a unified trade policy towards third countries. Common market – a grouping in the form of a customs union in which there is free internal movement of factors of production. Economic union – includes elements of a common market with simultaneous, full coordination or unification of various economic policies, e.g. agricultural, monetary, transport, fiscal, social, economic legislation, industrial policy. Additional forms of groupings are: Political union – full coordination or unification of the basic areas of domestic policy, foreign policy, possibly defence policy, establishment of legislative and executive bodies with supra-state powers; includes all elements of economic union. Monetary union – as an intermediate form between the common market and economic union is characterised by the full coordination of monetary policy, exchange rate policy, the establishment of a common central bank, the creation of common foreign exchange reserves, the introduction of a common currency.