Summary

This booklet begins by briefly setting out the background to EMU, what EMU involves and the stages in it, the criteria for entry to EMU and the process leading up to its establishment, including the role of the Houses of the Oireachtas. The three main elements of EMU - the single currency, the European Central Bank and closer coordination of economic and budgetary policy -  are then described. The booklet goes on to outline Ireland's policy on EMU; the benefits of EMU and the challenges that it will present for Ireland; a short summary of the July 1996 report by the Economic and Social Research Institute (ESRI) on the Economic Implications for Ireland of EMU is then provided. The UK position on EMU and the sterling issue are mentioned and policy responses to a possible economic shock in EMU are considered. Finally, the booklet sets out the timetable for the changeover to the euro and describes Ireland's legislative and practical preparations for it.