Managing European Monetary Union: Risks and Opportunities for Canadians

The advent of European monetary union (EMU) is arguably the most important international financial development of the decade. Canadian businesses need to understand the potential opportunities and risks it poses for them.

Document Highlights

Companies will enjoy significant cost savings once exchange rate risk and conversion costs are eliminated under EMU. Fiscal prudence and monetary stability under the European Central Bank will help governments deal with downturn in the economy, while enabling more productive use of government funds, lower taxes and a more stable environment for business planning.

This research looks at:

• the potential risks of EMU;
• the potential benefits;
• the impact on Canadians if EMU fails; and
• the impact on Canadians if EMU succeeds.