Emu

Front 1

What is the EMU?

Back 1

umbrella term for group of policies converging the economies of all 17 eurozone states and 10 non-euro states at three stages.

Front 2

When was the first attempt to create a EMU?

Back 2

1969 - European Commission set out need for 'greater coordination of economic policies and monetary cooperation'

Front 3

What set out EMU plan?

Back 3

Delors report of 1989 made a plan to introduce EMU in three stages.

Front 4

Stage 1 (1 Jan 94 - 31 Dec 98)

European Monetary Institute

Back 4

established task of strengthening monetary cooperation between member states and their national banks, aswell as supervising ECU banknotes.

Front 5

16 December 1995

Back 5

name of new currency (euro) and transition period decided

Front 6

16-17 June 1997

Back 6

European Council decided to adopt Stability and Growth Pact (SGP) designed to ensure budgetary discipline after creation of the euro and a new exchange rate mechanism (ERM II) is set up to provide stability above the euro and national currencies who had not yet joined the eurozone.

Front 7

3 May 1998

Back 7

11 initial countries that will participate in the Third Stage from 1998 are selected.

Front 8

1 June 1998

Back 8

European Central Bank created.

Front 9

31 December 1998

Back 9

conversion rates between 11 participating national currencies and the euro are established.

Front 10

Stage 2 (1 Jan 99 - 31 Dec 01)

Back 10

from start of 1999, euro is now a real currency on international markets and a single monetary policy is introduced under authority of ECB. three year transition period begins.

Front 11

Stage 3 (1 Jan 02 - present)

Back 11

introduction of actual notes and coins, but legally the national currencies have already ceased to exist.

Front 12

Jan 02 - notes introduced
Jan 07 - Slovenia joins third stage
Jan 08 - Cyprus and Malta

Back 12

Jan 09 - Slovakia
Jan 11 - Estonia

Front 13

Stability and Growth Pact (SGP)

Back 13

agreement among 27 member states to facilitate and maintain stability of EMU.

Front 14

What does SGP consist of?

Back 14

- fiscal monitoring of members by European Commission and Council of Ministers.
- the issuing of yearly recommendation for policy actions to ensure a full compliance with the SGP

Front 15

the fiscal discipline - ensuring each member state:

Back 15

- stays within limits on government deficit (3% of GDP)
- and debt (60% of GDP)

Front 16

all members are required to submit a SGP report.
what are they called?

Back 16

'stability programmes' for eurozone members
'convergence programmes' for non

although different names, identical in content.