ECU2 : 1979 - FDC European Monetary System entry into force, Giscard - Schmidt

Birth of the European Monetary System and the E.C.U. (European Currency Unit)

Precursor of the EURO

April 7-8, 1978, Copenhagen European Council: German Chancellor Helmut Schmidt and French President Valéry Giscard d'Estaing submit to their partners a draft European Monetary System (EMS).

4-5 December 1978, Brussels European Council: Historic European Agreement on the creation of the single currency ECU (European Currency Unit), European unit of account which represents the weighted average of the participating currencies, adopted by eight countries of the common market (Germany Federal, Belgium, Denmark, France, Ireland, Italy, Luxembourg and the Netherlands).

12-13 March 1979, Paris European Council: Entry into force of the European Monetary System (March 13) based on the concept of fixed, but adjustable, exchange rates. The member states of the European Union now undertake to respect a fluctuation band for their currencies restricted to +/- 2.25%. This level marks the start of European monetary stability.