The European Monetary Union the Challenges It Faces Essay

The European Monetary Union the Challenges It Faces - Essay Example According to the report ceo-functionalism as well as inter-governmentalism are both macro-level theories of international relations, which are especially developed with a view to illustrate, elucidate and envisage the European integration as a process.Such macro-economic frameworks help in better understanding of certain ‘history making’ decisions. As the paper declares the attribute which can be most strongly associated with the neofunctionalist approach with regard to the study of European integration and which symbolized the most noteworthy advance upon Mitrany’s perspective is the process of spill over. This process can be divided into two major parts – sectoral or functional spill-over which is associated with the growth of assimilative activities spanning from one sector to another. For instance, the expansion of policies related to coal and steel to agriculture and transport. The other attribute of the political spill-over entails politicization of sectoral activities whereby the harmonization of monetary policies is substituted by a more centralized system of governance. The entire process of spillover is aptly described in the Merger Treaty which was signed in 1965 and which was primarily aimed at merging of the three treaties of Rome namely the ECSC, the EURATOM (European Atomic Community) and the EEC (E uropean Economic Community). The treaty aimed for a single commission and a single council of the three European communities.