Abstract

On November 1, 1993, the Treaty on the European Union signed at Maastricht on February 7, 1992 (the Maastricht Treaty) came into force.2 Despite the difficulties in the summer of 1993 with the European Community’s system for holding most of its member states’ currencies in close alignment,3—the exchange rate mechanism—the European Union followed the provisions in the Treaty for the progressive stages of economic and monetary union. The Union took the steps provided for at the second stage (to begin January 1, 1994), namely, the creation of the European Monetary Institute (EMI).4 The European Council, meeting in Brussels on December 10–11, 1993, having previously decided that the EMI would have its seat in Frankfurt, appointed (in accordance with the procedures set out in Article 109f of the Treaty) Professor Baron Lamfalussy, former General Manager of the Bank for International Settlements, as the President of the EMI. It is the function of the EMI, among others laid out in Article 109f of the Treaty, to prepare for the third stage of Economic and Monetary Union (EMU).5