Nature and Objectives of Economic and Monetary Union

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I. Nature and objectives of economic and monetary union Economic and Monetary Union (EMU) is an advanced stage of economic integration, which is characterized by the implementation of a common currency and economic policy at EU level and logical complements the creation of the single market. Can be defined six stages of economic integration: 1. Preferential Trade Area (with reduced customs tariffs between certain countries) 2. Free Trade Area (no internal tariffs on some or all goods between the participating countries) 3. Customs Union (with the same tariffs to third parties and the common commercial policy) 4. Common Market (general rules for the products and the free movement of goods, capital, people and services) 5. Economic…show more content…
The state should not be for the same period devalvatsia central rate of its currency against the currency of any other country - State. The third stage of the construction of EMU began on 1 January 1999 Since its inception the European Union has a single monetary policy and a single currency - the euro. Decision on behalf of the European currency was taken by the European Council in Madrid in December 1995 g.Vavezhdaneto the euro is done by passing through three main phases: The first phase began in 1998, when deciding which Member States fulfill the Maastricht criteria and wish to introduce a single currency. These are the 11 Member States of the European Union. The second phase began on January 1, 1999, when the single currency was introduced in 11 Member States. From an economic point of view, monetary union began its real existence of that date, although banknotes and coins came into circulation three years later. In this phase, euro payments are made
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