Background to the euro

This study looks at the euro from a number of different angles. It first examines the theoretical basis for a single currency area in Europe and then outlines the history of that single currency's creation, from the 'snake' in the 1970s to the introduction of euro notes and coins at the beginning of 2002. The four final sections concern issues of current or future importance: the working of the Stability and Growth Pact and of economic co-ordination; the conduct of monetary policy by the ECB; the potential enlargement of the euro area to existing and future EU Member States; and the use of the euro in the world economy. Its concluding bibliography provides, in particular, links to the papers and discussions associated with the European Parliament / ECB 'monetary dialogue'.