European Monetary Unión

European Monetary Unión

Definition of European Monetary Unión

In accordance with the work A Dictionary of Law, this is a description of European Monetary Unión : (European Monetary Union, EMU)

The establishment of a common currency for member states of the European Union. The *Maastricht Treaty specified three stages for achieving EMU, starting with participation in the *Exchange Rate Mechanism. The second stage created the European Monetary Institute, which coordinated the economic and monetary policy of member states. The third stage, achieved by January 1999, locked member states into a fixed exchange rate, activated the *European Central Bank, and introduced the single currency, the euro (divided into 100 cents), for all noncash transactions (national currencies continued in use for cash transactions). In 2002 euro notes and coins came into circulation in those states within the system (i.e. all member states except the UK, Denmark, and Sweden).

Description of European Monetary Union

The following is a short description of european monetary union in the European Union context: It is a common mistake that EMU means European monetary union. In fact the initials stand for Economic and Monetary Union, a more far-reaching goal.

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