Economic and Monetary Union
a.k.a. EMU
The EU framework that coordinates economic policy and created the euro, with a single currency and…
In plain English
The EU framework that coordinates economic policy and created the euro, with a single currency and central bank for members who join.
The Economic and Monetary Union (EMU) is the project that brought the euro into being. It set entry rules on inflation, deficits and debt, handed monetary policy for member countries to the ECB, and created shared rules for budgets.
Members share a currency and interest rate but keep their own tax and spending policies, a mix that caused real strain during the eurozone debt crisis.
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