Future Challenges on the Way to the Full Convergence

Purpose: This chapter aims to understand what convergence means and why it is considered so crucial for the full admission of a state to the European Economic and Monetary Union. Doing this will help understand what considerations of economic theory it is based on. Need for study: To look into the Maastricht architecture, to point out its fragility during the last crises and the capability of the reforms adopted to reduce it, and to make European monetary union (EMU) more attractive for European Union (EU) members still outside it. Methodology: The experiences of some countries that joined the EU from 2004 to today will be analysed to propose a synthesis from both a qualitative and quantitative perspective that highlights the paths taken by individual states and the processes currently underway. Findings: The fragility of the EMU architecture became apparent during recent crises. The European Central Bank (ECB) took on new functions, and it became necessary to establish new financial institutions to operate beyond the Maastricht Treaty. Public budget control rules were suspended during the pandemic crisis, and a one-off transfer among states (Next-Generation EU) was adopted. This was an important precedent, but it was still far from the redistribution among states necessary for a political union. Practical implications: In Maastricht architecture, there is no room for what is needed most by old and new members, that is, coordinated fiscal policies to stimulate aggregate demand, ensuring persistently high employment and production levels. The paths towards the welfare of European citizens, the increase in the sense of belonging to the same community, attracting new members and supporting financial stability all “converge” on the denominator of the Maastricht fiscal parameters.