A LEGAL STUDY OF ECONOMIC AND MONETARY UNIONS: A COMPARISON BETWEEN THE EUROZONE AND THE WEST AND CENTRAL AFRICAN EXPERIENCES - Lorenzo Saviane
Creators: name: Saviane, Lorenzo
Publisher: name: figshare
Year: 2022
Subjects: subject: Law
subject: FOS: Law
subject: 180106 Comparative Law
subject: 180116 International Law (excl. International Trade Law)
subject: 140212 Macroeconomics (incl. Monetary and Fiscal Theory)
subject: FOS: Economics and business
subject: 210310 Middle Eastern and African History
subject: FOS: History and archaeology
subject: 210307 European History (excl. British, Classical Greek and Roman)

description: The recent history of the European continent and that of the African one are interconnected. This cannot be considered exclusively a consequence of the developments of globalisation, since even the current relationship between the European States and the West and Central African States has roots in the colonial period. The specific aim of this study is to analyse the development of this relationship through a comparison between the economic and monetary unions that have been established in both areas. Indeed, this relationship has radically evolved over time, from the colonial domination to a more complex monetary relationship which nowadays connects the West and Central African currencies to the European one. Therefore, the present analysis is focused on the legal framework of the economic and monetary unions established in Europe, West Africa and Central Africa, which are connected not only by a historical point of view, but also by legal provisions. When the aggressive colonisation of Africa by the European Countries came to an end after the second world conflict, France was able to maintain a strong relationship with the Countries where it had extended its dominance since the XIX century. The African territory comprised in the franc zone extended from the area of current Senegal on the West to the heart of the continent in the area of the current Central African Republic. The franc zone has evolved over time and now includes a total of fifteen African States. Nonetheless, the franc zone itself is not represented in any single institution. Instead, the franc zone is composed of three different regional groupings: the West African Economic and Monetary Union (WAEMU), the Economic and Monetary Community of Central Africa (CEMAC) and the Union of the Comoros. What all these regional groupings share with France is a currency, that is, the CFA franc. Indeed, the CFA franc was first established by France, that made it the legal tender in each regional grouping. Its characteristics are unique, but similar, in each grouping and France controls the currency through a set of agreements signed with each grouping. Through these arrangements France de facto exercises its monetary sovereignty over the franc zone Countries. The actual advantages and disadvantages of the CFA franc system have become a source of debate in recent times and different economic analyses show different results. Anyway, one thing cannot be changed, that is, the history of the franc zone Countries and of their relationship with France. Therefore, the historical analysis is greatly relevant to the present study because only looking at the past relationship between the franc zone Countries and France first, and the European Union (EU) then, the current issues of the CFA franc system can be understood. Nevertheless, to understand the functioning of the monetary and economic unions of the franc zone the study of the European Economic and Monetary Union is preliminary. This, not only because the history of France is strictly connected with the birth and development of the European Union itself, but also because the legal framework of the economic and monetary unions of the franc zone, at a closer look, faithfully resembles that of the EU, which shows the <br> 9 <br> closeness of these regimes. Therefore, an analysis of the institutional and legal framework of the European Economic and Monetary Union is necessary to the study of the institutional and legal framework of the WAEMU, the CEMAC and the Union of the Comoros. In the first chapter the concept of money is introduced, which is fundamental for the purposes of this study. Indeed, there are multiples general theories on the concept of money; similarly, there is no single legal theory on it. The legal concept of money is further analysed as a specific arm of the sovereignty exercised by States under international law. Indeed, the analysis will try to answer the questions relating to the scope of the sovereignty of States, thus of its internal and external boundaries. The first chapter concludes with the analysis of the two monetary frameworks object of this study: the European Union and the franc zone. A first section, concerning the Euro, describes its main <br> attributes as a single currency and legal tender for nineteen of the current twenty- seven EU Member States. The second section, instead, focuses on the CFA <br> franc, the single currency and legal tender of the Member Countries of the franc zone. Both sections adopt the perspective of the erosion of the concept of State sovereignty, as the EU and African experiences represent two different models of alienation of monetary sovereignty to a third entity. The second and third chapters introduce the study of the abovementioned economic and monetary unions. The second chapter is focused on the European Economic and Monetary Union, while the third chapter is focused on the West and Central African context, with an analysis of the economic and monetary unions that are part of the franc zone: the WAEMU, the CEMAC and the Union of the Comoros. The second chapter starts with a historical analysis of the European Union, from the establishment of the Union of Payments to the Maastricht Treaty. The historical events that marked the development of the Union itself to its present form will be expounded to understand its rationale as well as its broader context. Indeed, the EU was born when the monetary agreements between States where radically changing and the consequences of this are different for the European Countries and the African ones. The second paragraph introduces the birth of the economic policy coordination and the establishment of a single monetary policy in the EU context. Later, the third, fourth, and fifth paragraphs analyse the progressive collapse of the European economy following the breakout of the Great Recession in the United States. The stability of the system is analysed by pointing out its flaws and strengths diachronically. Indeed, first the single phases are illustrated which characterised the European sovereign debt crisis, then a detailed study of the post-crisis legal framework follows, focussing on the steps which allowed the Union to come out from the economic crisis and enter a new period of stability thanks to a renewed legal framework. The sixth and last paragraph is, instead, centred on the most recent developments, especially those triggered by the measures taken to react to the COVID-19 pandemic crisis. The third chapter focusses on the franc zone. The introductive paragraph identifies the regional groupings present in the area. Indeed, the franc zone <br> 10 <br> Countries border with Countries members of regional groupings outside the franc zone and in some cases they both participate to the same third regional grouping. Therefore, it is fundamental to understand the context in which the Member Countries of the WAEMU, the CEMAC and the Union of the Comoros operate. The second and third paragraph, instead, are introduced by a historical and legal analysis of the franc zone to understand the origins of the area and to go through the landmarks of the CFA franc, from its birth to the establishment of its four pillars. Indeed, this historical analysis is essential to understand why the CFA franc is now source of great controversies between academics and politicians from both sides, the French and the African ones. The fourth paragraph makes an institutional comparison between the economic and monetary unions of the franc zone and the European Economic and Monetary Union. Among them, the WAEMU is undoubtedly the regional grouping whose institutional framework emulated the most the EU model. Nevertheless, the institutional framework of the CEMAC and of the Comoros Union is not distant from that of the EU. The fifth and sixth paragraphs focus on the main current challenges to the economic development of the franc zone Countries. Indeed, the debate over the CFA franc has recently focused on the possibility for the participating Countries to abandon the CFA franc system and establish a new monetary union with a new common currency for both the WAEMU and the CEMAC Countries. This proposal has been taken seriously, but in the past the institutions of the two regional groupings postponed multiple times a radical intervention. The economic and legal analysis on the ground of which this decision must be taken explain the difficulty in taking concrete action. The concluding paragraph, instead, deals with the outbreak of the pandemic crisis and how it affected the scheduled programme for the adoption of a new single currency for the franc zone Countries as part of the more general plan to give them back their monetary sovereignty.