... a stable system other Member States had to adjust their economic policy to conform to Bundesbank monetary policy. It came to be seen that a share of pooled sovereignty over monetary policy, was better than a largely illusory national sovereignty. This was particularly the case since increasingly governments were delegating monetary policy to independent national central banks. So the change to an independent European Central Bank did not seem that great. Since such a bank would set monetary policy based on the needs of the EMU area, rather than just one country, this seemed a distinct improvement. The extent of monetary independence exercised by such a bank, by virtue of the size of the area and its limited external trade, would be much greater than that enjoyed under EMU. Another impetus for EMU was provided by external events, with the fall of the Berlin Wall in 1989, German unification became a ...

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