The official site of Italy's central bank

The economic and monetary union

A brief history

In June 1988 the European Council reaffirmed the objective of the 1957 Treaty of Rome, establishing the European Economic Community, of progressive realization of an economic and monetary union.

It assigned a committee chaired by Jacques Delors, then President of the European Commission, to draft a concrete programme to this end. On the basis of the Delors Report’s recommendations, in June 1989 the Council decided that the first stage in the creation of Economic and Monetary Union (EMU) would begin on 1 July 1990 with the free movement of capital.

The start dates for the second and third stages were set by the Maastricht Treaty on European Union (1992): the second stage began on 1 January 1994 with the creation of the European Monetary Institute, with a mandate to strengthen cooperation between central banks and the coordination of monetary policies to prepare for the institution of a single currency and a single monetary policy.

On 3 May 1998 the European Council decided that eleven Member States (Austria, Belgium, Germany, Finland, France, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain) had fulfilled the convergence criteria set by the EC Treaty for membership of EMU and, on 31 December 1998, fixed the irrevocable conversion rates between the euro and their currencies.

These States adopted the euro as their single currency with the launch of stage three of EMU on 1 January 1999; on the same date, the conduct of monetary policy was entrusted to the Eurosystem and the European Central Bank.

In the first three years of EMU the euro was a book-entry currency. Cash – euro banknotes and coins – was introduced on 1 January 2002.

Following a check of the Treaty convergence criteria, Greece entered the euro area on 1 January 2001, Slovenia on 1 January 2007, Cyprus and Malta on 1 January 2008, Slovakia on 1 January 2009 and Estonia on 1 January 2011.

In June 1988 the European Council reaffirmed the objective of the 1957 Treaty of Rome, establishing the European Economic Community, of progressive realization of an economic and monetary union.

It assigned a committee chaired by Jacques Delors, then President of the European Commission, to draft a concrete programme to this end. On the basis of the Delors Report’s recommendations, in June 1989 the Council decided that the first stage in the creation of Economic and Monetary Union (EMU) would begin on 1 July 1990 with the free movement of capital.

The start dates for the second and third stages were set by the Maastricht Treaty on European Union (1992): the second stage began on 1 January 1994 with the creation of the European Monetary Institute, with a mandate to strengthen cooperation between central banks and the coordination of monetary policies to prepare for the institution of a single currency and a single monetary policy.

On 3 May 1998 the European Council decided that eleven Member States (Austria, Belgium, Germany, Finland, France, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain) had fulfilled the convergence criteria set by the EC Treaty for membership of EMU and, on 31 December 1998, fixed the irrevocable conversion rates between the euro and their currencies.

These States adopted the euro as their single currency with the launch of stage three of EMU on 1 January 1999; on the same date, the conduct of monetary policy was entrusted to the Eurosystem and the European Central Bank.

In the first three years of EMU the euro was a book-entry currency. Cash – euro banknotes and coins – was introduced on 1 January 2002.

Following a check of the Treaty convergence criteria, Greece entered the euro area on 1 January 2001, Slovenia on 1 January 2007, Cyprus and Malta on 1 January 2008, Slovakia on 1 January 2009 and Estonia on 1 January 2011.