ABSTRACT
The Treaty on European Union, negotiated for one year ending with agreement at Maastricht in December 1991 and ratified by each member-state in the following year, set a timetable and conditions for the transition to economic and monetary union (EMU). EMU entailed "irrevocably locked currencies" for qualifying countries-a transition that was to occur automatically by 1999 even if only a few governments qualified. Plans were set for a European central bank (ECB) , which would enjoy greater independence than any national central bank today. Political control would be imposed only over exchange-rate cooperation vis-a-vis third countries. To qualify, countries would have to meet a stringent set of criteria, including stable exchange rates, low inflation, and reduced deficits.
