EMU, second stage

The second stage of EMU began on 1 January 1994. The aim in the second stage was to achieve more stable and uniform development within the EU. Member states were therefore to work towards meeting certain economic requirements, called the convergence criteria, which were incorporated in the Treaty of Maastricht. Among other things, member states were to limit their government budget deficits and government debt, and ensure price stability. At the start of the second stage, the European Monetary Institute, EMI, was established in Frankfurt am Main, Germany. The EMI was the forerunner of the European Central Bank.

At an EU summit in Madrid in December 1995 it was decided that the third stage was to start on 1 January 1999. It was also decided that the name of the single currency was to be euro, and that euro banknotes and coins were to be introduced by 2002 at the latest. At a meeting in Brussels in the beginning of May 1998 the heads of state and of government decided to introduce the euro in 11 member states: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.