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European Economic and Monetary Union (EMU)

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The Economic and Monetary Union (EMU) is an umbrella term for the group of policies aimed at converging the economies of member states of the European Union.

The decision to form an EMU was taken by the European Council in the Dutch city of Maastricht in December 1991 and was later enshrined in the Treaty on European Union (the Maastricht Treaty).

The economic and Monetary Union takes the EU one step further in its process of economic integration, which started in 1957 when it was founded.

Economic integration brings the benefits of greater size, internal efficiency, and robustness to the EU economy as a whole and to the economies of the individual Member States.

This, in turn, offers opportunities for economic stability, higher growth, and more employment outcomes of direct benefit to EU citizens.

What Is the Difference Between the European Union (EU) and the Eurozone?

The European Union (EU) is a political and economic grouping of 27 countries committed to shared democratic values. Eight of these countries do not use the euro, leaving 19 nations in the so-called eurozone, that share the common currency.

When Did the European Monetary Union Begin?

The EMU formally began on February 7, 1992, with the signing of the Maastricht Treaty in the Netherlands. The euro itself was launched on January 1, 1999, as a unit of account, and coins and banknotes began circulating on January 1, 2002.