Since the inception of Euro in 1999, a single currency and the Economic and Monetary Union (EMU) have past more than ten years. By and large, stepping into EMU represents one of the key aspects of EU’s successful integration. For most of its short life, the European Union has been driven mainly by the goal of economic integration. From a limited experiment in economic cooperation during the early 1950s, boarded in the 1960s to become a custom union, wrestled during the 1970s with attempts to build common economic policies and exchange rate stability, focused on completing the single market during the late 1980s, to the Economic and Monetary union and a single currency at the present1, the European Union has followed a tortuous path. The paper starts with the effectiveness of EU’s monetary policy after the birth of Euro to explore the complex relationship between monetary policy and economic operation within the European Union
