Title: 
Headings: 

Content: The ability of a particular 
country to share a common currency is considered to be much more important than its 
ability to meet certain criterion. For example, Belgiwn and Italy were given a certain 
amount of flexibility in their ability to meet the public debt requirement. The European Central Bank was also established with the signing of the Maastricht 
Treaty. The bank will be located in Frankfurt, Germany because the European Monetary 
Institute is already located there. The bank will be responsible for controlling and fixing 
interest rates. All  the participating countries will  have to meet the interest rate targets set 
by the bank. The Introduction of the Euro will  follow the following calendar phases: Phase A (May 2, 1998-December 31, 1998) 
•  Countries participating in the EMU will  be announced 
•  Creation of the European Central Bank 
•  Financial and banking sectors finalize change-over procedures 
Phase B (January 1, 1999-December 31, 2001) 
•  Conversion rates of the member countries will  be permanently fixed on 
January 1, 1999 
•  Euro is established as the official currency on January 1, 1999 
•  National currencies continue to exist 
•  Monetary, capital, foreign exchange, and interbank markets converted to 
Euros 
Phase C (January 1, 2002 -July 1, 2002) 
•  Introduction of Euro notes and coins into the market on January 1, 2002 
•  National currencies must cease to exist in the market by July 1, 2002 
•  Change-over is complete 
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Cole et al.: Regional Economic Integration
Published by Fisher Digital Publications, 1999
Benefits ofthe Economic and Monetary Union for Businesses 
With the