The EU, Euro and Eurozone

Introduction and Statement of Purpose

Traditionally, "sovereignty" is discussed and assessed in the context of the nation-state, an autonomous entity that pursues specific goals and objectives in its interactions with other political entities and which acts to protect its autonomy when threatened by others. Today, however, new mechanisms of governance have been created that pose a challenge to this traditional interpretation of "sovereignty" and the state. One example is the European Union (EU), which has launched not only a currency regime (the Euro) and a corresponding zone of influence (the EUROZONE), but also created a central bank (The European Central Bank or ECB) and a parliamentary organ as well as a potentially normative constitution bringing EU and EUROZONE members into a closer and closer relationship.

European integration, initiated first by the creation of the Common Market and now expanded dramatically to include political as well as economic integration structures, may be a consequence of globalization. It is also a harbinger of a changing attitude toward the state-centric concept of sovereignty. The EU, particularly in light of the creation of a transnational currency regime and a legislative assembly and central bank, has become a sovereign entity in and of itself; however, the question of how such an entity will ultimately impact upon the activities of member states remains unanswered. As signi