Baudouin Lamine (Directorate-General for Economic and Financial Affairs)
On 1 January 1999, the euro became the single currency of eleven EU Member States, thereby replacing the different national currencies at the respective irrevocably fixed conversion rates. The Member States concerned ceded their monetary policy powers to the European System of Central Banks (ESCB) and , while the Council of Ministers became responsible for the euro area’s exchange-rate policy. The participating Member States thus lost their competence to decide on monetary and exchange rate policy issues, and hence also to conclude monetary or exchange-rate agreements with third countries. Such agreements have now come within the exclusive competence of the Community as far as they relate to the euro.
|ISBN 92-79-01196-0 (online)|