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We have another stab at explaining things European in
In 1992 the European Commission adopted the goal of economic and monetary union (EMU) in the Maastricht Treaty. Monetary union complements economic union, which consists of four components: the common market, competition policy, regional and structural policy, and macroeconomic policy coordination. The currency unit of this monetary union will be the euro.
How will the euro be established?
According to the timetable laid down in the Maastricht Treaty, EMU is to be established in three stages. Whereas the first two stages are transitional stages promoting economic and monetary cooperation, coordination and convergence, stage three marks the actual beginning of monetary union.
When will stage three begin?
The Maastricht treaty provides that economic and monetary union will be launched on January 1st 1999. The currencies of participating states are to be locked irrevocably against each other and with respect to the euro.
When will new notes and coins be issued ?
Euro notes and coins will replace national notes and coins in the early part of 2002.
Will this happen in the UK ?
For the UK to join the euro the economy must meet the convergence criteria. When the first group of participating countries was chosen early in 1998, Great Britain met these but the pound may be required to follow the euro for 2 years before being allowed in. The government has also pledged that a referendum will be held if it feels that conditions are right to join. It seems unlikely that all this can be done before 2002.
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