Background 

The idea of a single currency among Member States is not new. It goes back at least to 1970. While its fortunes have varied since, the European Community never lost sight of it as a goal. The European Monetary System and its Exchange Rate Mechanism, which were set up in 1979, were intended to be a move towards monetary union. The Single Market programme of the late 1980s gave fresh impetus to it.  

The Delors Committee report of 1989, together with the European Commission report One Market, One Money of 1990, laid the foundations for the provisions on EMU that are set out in Articles 102a to 109m of the Maastricht Treaty. The Treaty received widespread support here in Ireland and the leaders of the four main political parties issued a joint statement urging a "yes" vote in the referendum on it held in June 1992. The Treaty was endorsed by a substantial majority: just under 70 per cent of those who voted were in favour of it.  

EMU involves three inter-related elements:  

	the establishment of a single currency among participating Member States;
	the creation of a single monetary policy implemented by an independent European Central Bank (ECB); and
	intensified co-ordination of the economic and budgetary policies of participating Member States.