The Park Place Economist


A new initiative to further integrate the European Union went into effect in Novem ber 1993 with the Maastricht Treaty. With this treaty eleven European Countries joined forces to form the European Monetary Union (EMU). The EMU brings economic integration one step further by creating a common currency for Europe - a monetary union that would abolish the transaction costs of converting] one EC currency to another, as well as eliminating exchange rate variability and uncertainty among traders and investors.