This paper identifies and analyses the impact of European integration on the structure and characteristics of the modern monetary law, with a special emphasis on the characteristics of the monetary system of Serbia. A particular problem with monetary sovereignty analysis is the external effects, which are reflected in the EMU attempt to expand its authority over the territory of the Member States. This is particularly evident in the case of the candidate countries, which must harmonize their financial legislations with the acquis communautaire. Monetary policy is fully centralized at the European Union level, so Serbian lawmakers must make the necessary derogations of monetary standards in order to facilitate future accession to EMU – primarily the provisions Law of Central Bank, Law on Public Debt Management and the Foreign Exchange Act.
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