The aim of paper is presentation and analyses of main problems concern EMU from the theoretical and empirical point of view:
1. EMU- political project and economic theory fundamentals
2. Single currency, single monetary policy and problem of fiscal federalism
3. Fiscal crises and contagion effect
4. Asymmetric shocks and fiscal transfers
Data/Methods
In the paper, statistical data from Eurostat Databases will be used. Critical analyses of theoretical conceptions concern monetary union in the context of last recession and fiscal crises in Ireland, Greece, Spain, Portugal;
Expected results
Conclusions concern economic policy in the EMU and fiscal federalism, reforms.
Key words: monetary union, euro area, financial markets, financial markets integration, fiscal crises, contagion effect