PARIS (Reuters) – In the rich lexicon of Brussels acronyms, a new treasure has entered the vocabulary since June: GEMU.
It stands for Genuine Economic and Monetary Union, a term used in the conclusions of the last two European Union summits in a tacit acknowledgement that the single currency created by the 1992 Maastricht Treaty was flawed and woefully incomplete.
It also signals that Europe’s leaders are starting to shift their focus from fingers-in-the-dike crisis management to save the euro to a longer-term process of building a more robust, storm-resistant architecture for the currency area.
The aim is to bolt onto the existing governance structures more binding fiscal discipline, common banking supervision and resolution, more effective economic policy coordination and greater democratic oversight of euro zone policymaking.
The battle over the nature of a revamped GEMU will be a long and incremental affair.