The Euro.

... The Euro 'A single currency simplifies the profit maximising computations of producers and traders, facilitates competition among producers located in different parts of the country and promotes the integration of the economy into a connected series of markets; these markets including both the markets for products and for factors of production.' History December 1991 - Maastricht Treaty. The Council of Ministers agreed revision to the Treaty of Rome making monetary union a goal of the EU and set out the strategy for achieving it. Stage 1 - all countries join the ERM in 2.5% bands and capital controls are removed. EU countries to cooperate closely on monetary and fiscal policy. Stage 2 Exchange rate commitment via ERM to become more stringent with few re-alignments. Creation of European system of Central banks to prepare way for common monetary policy. Stage 3 - irrevocable fixing of exchange rates preceding single currency and monetary policy transferred to European Central

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