Fiscal policy coordination in European Monetary Union and Turkey analysis

European Union (EU) is an integration that is composed of supra-national decisive mechanisms and is in an endeavor of attaining a political union. On that aim, the Union is trying to get member states closer to each other within the framework of political union target; in terms of economic, monetary and political issues. Due to the fact that It has arisen on the basis of economic integration, the Union approaches the economic integration on higher priority level. The integration brings the coordination of EU?s fiscal policy issue, which constitutes the essence of this study. It is aimed to strengthen the economic integration via monetary union, and this process brings out the application of certain criterion.Within the context of economic union, a negative development arisen in a member will be a cost item for others. Fort that reason, Maastricht or in other words Convergence Criteria that are approached as tools for fiscal policy, are hold as indispensable targets for members. It is tried to reach both legal harmonization and the coordination of fiscal policies among the members of European Monetary Union (EMU).Because of reasons mentioned above, this study analyses the coordination of fiscal policy issue in EMU. In this sense, in the first part of the study, the historical process until today is handled, and goals and duties of decisive organs of EU are pointed out.In the second part of the study, primarily monetary union that has a great importance in fiscal policy coordination and adaptation process is analyzed within the context of its theoretical background and development process. Within that framework, in this part of the study, the coordination of fiscal policy in senses of EU and monetary union is evaluated also in terms of country performance of today?s members.When we come to the last part of the study, Turkey?s performance on meeting her responsibilities in terms of both undertaking of Union?s legislation and attainment of Maastricht Criteria until the beginning of negotiations between Turkey and the Union is evaluated. And at the analysis sub-part, the coordination of EMU?s members in terms of fiscal policy is evaluated by statistical and comparative measurements. The statistical analysis is extended for Turkey?s performance because of her membership objective to EMU has been taken into account.The result reached at the end of the study is that the coordination of fiscal policy throughout the EMU has been attained in general terms. However, it is concluded that this performance level is not enough to reach a political union, and it should be augmented. It can be said for Turkey that due to last affirmative developments, Its success level of convergence has been risen.