Monetary policy is set for the whole of the euro centrally and independently by the ECB, other economic policies remain under national sovereignty. The success of EMU demands that the division of policy responsibilities set out by the Maastricht Treaty is followed. Sharing of tasks does not allow for any form of ex ante coordination of the ECB's monetary policy with other economic policies. This could give rise to additional volatility of financial markets.
Globalisation increases competition, thereby providing a positive contribution to price stability.
This increases the pressure on euro area and national authorities to conduct stability-oriented macropolicies. Lastly, globalisation of foreign exchange markets means that governments and central banks can no longer set and control a specific exchange rate for an international currency such as the euro. Hence, there is no alternative to a floating exchange rate.