A Comparison Between the Eurozone and the West and Central African Experiences
The specific objective of this paper written in English is to in analyzing the most recent developments in the relationship between the Economic and European Monetary Union and the corresponding Sub-Saharan Unions. Indeed, this relationship has evolved profoundly over time: from a climate of domination colonial has shifted to a relationship of a strictly monetary nature that links the European currency to those of West and Central Africa. The first chapter is devoted to the concepts of currency and monetary sovereignty. Indeed, in both Unions, the concept of state sovereignty, particularly that of monetary sovereignty, has been and is at the center of political and social debate. The Unions in question have in fact in common, ex plurimis, the establishment of a single currency, a set of rules to converge the policies macroeconomic policies of member states, a set of similar institutions and a single market. In the second chapter, there follows an in-depth analysis of the context of the Eurozone. After the establishment of a common market and a system to foster the convergence of economic policies, member states began to consider it complementary and necessary to converge their their monetary policies. In 1998, the euro, the European Central Bank and the EMU. However, even at its inception, the EMU had some flaws: first and foremost, the fact that it was based on strong monetary coordination, but fragile convergence of economic policies. Later, when the Great Depression came to Europe, the fragility of the EMU emerged. The absence of fiscal union resulted in the rapid extension of the crisis from one member states to another, exacerbating the vicious link between banks and governments. The post-crisis legal framework aims to establish at the same time a system for providing financial assistance to member states that request it and a system to strengthen the economic pillar of EMU and resolve its hindering asymmetry. The third chapter, meanwhile, is devoted to the different regional groupings present in sub-Saharan Africa. Since the colonial period, France has used all means at its disposal to keep its currency area intact. When early 1990s the European EMU was taking shape, it served as a model for the renewal of the legal framework of the free zone. In each regional grouping a system of macroeconomic convergence was established accompanied by a plan to centralize fiscal and monetary policies. The subsequent establishment of the euro changed geopolitical relations determining the new pegging of the CFA franc to the euro and no longer to the franc French franc. Nevertheless, the CFA franc remained under the exclusive jurisdiction of the France. A thorough description of the characteristics of the CFA franc follows. The agreements signed with France by each regional grouping define in fact the principles to be respected. These can be summarized in four pillars fundamental: a fixed exchange rate, free movement of capital, free convertibility of currency and the pooling of foreign exchange reserves. In addition, for each central bank in the free zone, an "operating account" was opened at the Treasury French Treasury an "operating account" through which the credit and liabilities of each regional grouping. The most controversial feature of the system is the fixed exchange rate. According to critics, it deprives the countries of the free area countries of their monetary sovereignty, and is therefore considered the main cause of the fragility and stagnation of the area's economy. For this and other reasons, the CFA franc is at the center of political debate in the free zone countries, and the sentiment of the need for radical reform is growing. The UEMOA, as part of ECOWAS, has begun to consider the possibility of establishing a new national currency, the Echo. However, the feasibility of a currency union is subject to a careful assessment of economic and political conditions. Similarly, the debate on the establishment of a new currency is also strong in CEMAC, but the project is far from becoming a reality. The outbreak of the COVID-19 pandemic has had a strong impact throughout the the entire world. In the eurozone and the free zone, it has affected the Unions in different ways, showing their fragilities. The European EMU responded by demonstrating the strength of its economic and monetary policy coordination. Similarly, the free zone countries are experiencing a turning point, as a reform concrete and radical reform of the CFA franc system finally seems feasible, also to successfully overcome the economic crisis. Relations with France have never been more difficult, but the creation of a new monetary union is essentially tied to strong political will, which is what the sub-Saharan countries most urgently needed by sub-Saharan countries.
The specific objective of this paper written in English is to in analyzing the most recent developments in the relationship between the Economic and European Monetary Union and the corresponding Sub-Saharan Unions.
