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Legal Terms - European Monetary Union (EMU)
It refers to the creation of a unified currency for the member states of the European Union. The Maastricht Treaty delineated three phases toward the attainment of Economic and Monetary Union, commencing with involvement in the Exchange Rate Mechanism. The second stage established the European Monetary Institute, which coordinated the economic and monetary policies of member nations. The third step, accomplished by January 1999, established fixed exchange rates among member states, activated the European Central Bank, and introduced the euro (subdivided into 100 cents) for all non-cash transactions, while national currencies remained in use for cash transactions. In 2002, euro banknotes and coins were introduced into circulation in the member states of the system.
It refers to the creation of a unified currency for the member states of the European Union. The Maastricht Treaty delineated three phases toward the attainment of Economic and Monetary Union, commencing with involvement in the Exchange Rate Mechanism. The second stage established the European Monetary Institute, which coordinated the economic and monetary policies of member nations. The third step, accomplished by January 1999, established fixed exchange rates among member states, activated the European Central Bank, and introduced the euro (subdivided into 100 cents) for all non-cash transactions, while national currencies remained in use for cash transactions. In 2002, euro banknotes and coins were introduced into circulation in the member states of the system.
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