EMU - European Monetary Union

The principal goal of the EMU was to establish a single European currency called the euro, which would officially replace the national currencies of the member EU countries in 2002. On January 1, 1999, the transitional phase to introduce the euro began. The euro now exists as a banking currency, and paper financial transactions and foreign exchanges are made in euros.

The transitional period lasted for three years, at which time euro notes and coins entered circulation. On July 1, 2002, only euros would be the legal tender for EMU participants; the national currencies of the member countries will cease to exist. The current members of the EMU are Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and Portugal.