The European Monetary Union and European Security Defense Policy: Their Impact on U.S. Defense Cooperation

On November 1,1993 under the Maastricht Treaty, the European Community EC formally became the EU. On 2 May 1998 the Commission announced that eleven European countries qualified for and decided to join a single currency area called the European Monetary Union EMU. Success or failure of the EMU will have far reaching consequences for the economies of nations in Europe and the U.S. In addition, the same Treaty of Maastricht provides language for a common European defense. In subsequent meetings, this has become known as the European Security Defense Policy ESDP and within NATO, the European Security Defense Initiative ESDI. At a unique time in history, Europeans are re-engineering their economic and defense structure, and it is not known what the long-term effects of those processes will be on Defense Cooperation between Europeans and the United States. This SRP will examine the establishment of the EMU and ESDP, the benefits and risks shared by each and their effect on Defense Cooperation with the United States. I will propose recommendations that may help the U.S. deal with this situation in the future.