Economic and Monetary Union (EMU)

The Treaty on European Union introduced detailed provisions on Economic and Monetary Union (EMU) in the Treaty establishing the European Community. The EMU is instrumental in fulfilling the task of the Community; it is based on a close co-ordination of Member States' economic policies, the introduction of a single currency and the conduct of a single monetary policy which is primarily focused on maintaining price stability. EMU is divided into three stages: The first stage started in July 1990 following the conclusions of the Madrid European Council and was notably characterised by a closer co-ordination of Member States' economic policies and the progressive dismantling of all internal barriers to the free movement of capital within the EU (a few Member States were allowed to maintain some specific restrictions for transitional periods). The second stage began on 1 January 1994 and covered the following elements: the liberalisation of capital movements and payments vis-à-vis third countries in general, the prohibition of monetary financing of the public sector by the central banks, the prohibition of privileged access to financial institutions by the public sector, the avoidance of excessive government deficits and the establishment of the European Monetary Institute as the forerunner to the European Central Bank (ECB). The third stage of EMU started on 1 January 1999 with the introduction of the euro and the transfer of monetary competence to the ESCB. Eleven Member States adopted the euro on this date (Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland). Greece adopted the euro on 1 January 2001. (NECCG)

In other languages:

• Għaqda Ekonomika u Monetarja (GħEM) [MT] - It-Trattat tal-Unjoni Ewropea daħħal provvedimenti dettaljati dwar l-Għaqda Ekonomika u Monetarja (GĦEM) fit-Trattat li taħtu mwaqqfa l-Kommunità Ewropea. L-GĦEM hi strumentali għat-twettiq tal-ħidma tal-Kommunità. Hi msejsa fuq il-koordinament mill-qrib tal-politika ekonomika ta' l-Istati Membri, l-introduzzjoni ta' munita waħdanija u ttħaddim ta' politika monetarja waħda li hi primarjament immirata għaż-żamma ta' stabbiltà fil-prezzijiet. L-GĦEM hi maqsuma fi tliet stadji: L-ewwel stadju beda f'Lulju 1990 fi tmiem il-Kunsill Ewropew ta' Madrid u kien notevolment karatterizzat b'koordinament mill-qrib tal-politika ekonomika ta' l-Istati Membri u t-twaqqigħ progressiv tal-fruntieri interni kollha favur il-moviment liberu tal-kapital fl-Unjoni Ewropea (xi wħud mill-Istati Membri kienu tħallew jżommu xi restrizzjonijiet speċifiċi għal perijodi ta' tranżizzjoni). It-tieni stadju beda fl-1 ta' Jannar 1994 u kopra dawn l-elementi: il-ħelsien tal-moviment tal-kapital u ħlas vis-à-vis pajjiżi terzi in ġenerali, il-projbizzjoni ta' finanzjament monetarju tas-settur pubbliku mill-banek ċentrali, il-projbizzjoni ta' aċċess faċilitat għas-settur pubbliku f'istituzzjonijiet finanzjarji, l-iskansar ta' defiċit pubbliċi eċċessivi u t-twaqqif ta' Istitut Monetarju Ewropew bħala prekursur tal-Bank Ċentrali Ewropew (BĊE). It-tielet stadju tal-GĦEM beda fl-1 ta' Jannar 1999 bid-dħul tal-ewro u t-trasferiment tal-awtorità monetarja għand l-SEBC. Ħdax-il Stat Membru addottaw l-ewro f'din id-data (il-Belġju, il-Ġermanja, Spanja, Franza, l-Irlanda, l-Italja, il-Lussemburgu, l-Olanda, l-Awstrija, il-Portugal, u l-Finlandja). Il-Greċja adottat l-ewro fl-1 ta' Jannar 2001 (NECCG)
• Unione Economica e Monetaria [IT]