Since the 1960s, the European Union has striven for an economic and monetary union. The theme has regularly returned to the agenda. An economic and monetary union means that economic policy and budgetary policy are coordinated. There is a joint monetary policy within such a union and there is a common currency.
In 1979, the European Monetary System (EMS) was introduced. This system meant that the exchange rates of participating currencies were kept within a narrow bandwidth. Later in 1989, the Delors Commission delivered the Report on Economic and Monetary Union in the European Community.
The report recommended introducing economic and monetary union in three phases in the years 1990-1999. This recommendation was adopted by the heads of government. The agreements were eventually approved as part of the Maastricht Treaty at the Maastricht European Council.
The introduction of the euro took place in three phases:
In the first phase of the European Monetary Union (EMU), the movement of capital was abolished. This phase started on the 1st of July in 1990. In this phase, the Committee of Governors of the central banks of the Member States was given additional responsibilities. These responsibilities included the coordination of monetary policies. The additional responsibilities were aiming at achieving price stability.
In the second phase, starting in January 1994, the Committee of Governors ceased to exist. Instead, the European Monetary Institute (EMI) was established. The main goals for the EMI were:
In December 1995, the European Council agreed to the ‘Euro’ as the name of the European Currency and also confirmed that the third stage would start on 1 January 1999. This was based on advice by the EMI.
In December 1996, the EMI presented a report to the European Council about the fundamental elements of the new Exchange Rate Mechanism. They also presented the selected design for the euro banknotes.
In 1998 the Council of the European Union decided that 11 member states fulfilled the necessary conditions for adoption of the Euro on 1 January 1999. These member states were Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Also in 1998, preparations were made for fixing the conversion rates to the current currencies of the different member states.
In the third phase, exchange rates were fixed for the 11 member states. The member states also started conducting a single monetary policy under the responsibility of the European Central Bank (ECB).
In January 2001, the number of member states introducing the Euro was increased to 12 with Greece joining the third stage of the European Monetary Union. On the day a new member state joins the Euro, its central bank automatically becomes part of the Euro system.
In 2002, the Euro was introduced in the twelve member states. Each country mints euro coins with their own designs. After the initial introduction of the Euro, different member states of the European Union joined the European Monetary Union.
| Year | Member State |
|---|---|
| 2007 | Slovenia |
| 2008 | Cyprus |
| 2008 | Malta |
| 2009 | Slovakia |
| 2011 | Estonia |
| 2014 | Latvia |
| 2015 | Lithuania |
| 2023 | Croatia |
From 2004 onwards, all countries can also mint commemorative 2 euro coins. Countries are allowed to mint two commemorative coins each year. You can find all different minted commemorative coins right here on Coinection.
