Economic and Monetary Union (EMU) denotes the EU framework for coordinating national economic policies and operating a common monetary system, including the euro for the countries that have adopted it. Its establishment was gradual. During the 1990s, restrictions on cross-border capital flows were dismantled, cooperation among central banks was strengthened and participating states were expected to bring their economic policies closer together, particularly in relation to price stability and public finances. Preparatory institutions and procedures preceded the launch of the euro. From 1999, the currencies of the participating countries were linked at permanently fixed rates, while responsibility for monetary policy passed to the European Central Bank. EU treaty language no longer uses the original three-stage description of EMU.
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.