Title: What is the Economic and Monetary Union? (EMU) | European Commission
Headings: What is the Economic and Monetary Union? (EMU)
What is the Economic and Monetary Union? (EMU)
Economic governance under EMU

Content: Launched in 1992, EMU involves the coordination of economic and fiscal policies, a common monetary policy, and a common currency, the euro. Whilst all 27 EU Member States take part in the economic union, some countries have taken integration further and adopted the euro. Together, these countries make up the euro area. Page Contents
The decision to form an Economic and Monetary Union 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). 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. In practical terms, EMU means: Coordination of economic policy-making between Member States
Coordination of fiscal policies, notably through limits on government debt and deficit
An independent monetary policy run by the European Central Bank (ECB)
Single rules and supervision of financial Institutions within the euro area
The single currency and the euro area
Economic governance under EMU
Within the EMU there is no single institution responsible for economic policy. Instead, the responsibility is divided between Member States and the EU institutions.