European countries have set up in 1972

He limited the deviation of exchange rates from the central values ​​of the limits of 1.125% and was known as "snake course" because of the high-frequency oscillations of the cross rates of European currencies against the U.S. dollar. However, this mechanism is difficult elapsed: Britain followed these rules, just six weeks, France and Italy twice retreated from a system of rules, under the mechanism of co-regulation "floating" rates. It became apparent that the global monetary system, irreversible changes and return to fixed exchange ratio is impossible. Then European nations have created the European Monetary System (EMS). July 7, 1978 in Bremen, an agreement was reached on the establishment of EMU. Memorandum on the establishment of EMU has been signed by European Commission President Robert Jenkins in 1978 to March 1979, the EMU countries (except Great Britain, joined later) entered into the system, providing for the formation of exchange rates, the mechanism that limits their deviations off at 0, 25% in both side of the fixed central values. For the least stable currencies limits were set at 6%. As is the case with previous bad experience, this mechanism has not justified itself. French franc and Italian lira were twice devaluation, and with the advent of the center-left government of Francois Mitterrand 1982-1983, there was a question of withdrawal of France from EMU. But this did not happen. In December 1991 the European Commission president Jacques Delors made a detailed program of gradual transition to the single European currency. His report was the basis for the adoption of a formal agreement states - participants of EMU, which was signed in Maastricht in early 1992, but in the same year, was held "failed" referendum in Denmark, which has created the ground for doubt in the ability of plans of European monetary integration. As a result, Britain and Italy out of the said agreement. This step led to different results in both states. Italy, which was a country with an inefficient economic system, enhanced its financial discipline, and in May 1998 it officially included among the states - members of the single currency area. In the UK the same - opposite - a way out of the agreement contributed to the development of "Euroscepticism". As a result, the Labour cabinet formulated the impossibility of joining the Eurosystem before the next parliamentary elections in 2002, May 2, 1998 in Brussels, the heads of eleven Western European countries - Austria, Belgium, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, Finland and France - signed a memorandum of accession to the collective monetary system. January 1, 1999 national currencies and the ECU in non-cash turnover was converted into a collective currency - the euro. In the cash flow notes and coins replaced the existing national marks in cash in 2002 Category: Banking systems | Tags: regulation of the banking system