EMU°

abbreviation Also written Emu (Business World) Short for economic and monetary union, a programme for full economic unity in the EC, based on the phased introduction of the ecu as a common currency. Etymology: Now nearly always explained as the initial letters of Economic (and) Monetary Union, although during earlier discussions (see below) it was intended to stand for European Monetary Union, and this expansion is still sometimes given. History and Usage: EMU is by no means a new abbreviation, the idea having been proposed as early as 1970 as a way of solving currency difficulties in France and Germany. The original plan envisaged that the full union of EC currencies should be achieved by 1980 and be based on a European monetary unit (see ecu). Little progress towards this aim had taken place by 1978, when the European Monetary System (see EMS) was adopted by eight member states as the EC's financial system, incorporating a mechanism for controlling exchange rates. A new impetus for EMU was the publication in April 1989 of the Delors report, a three-stage plan for introducing a common currency and aligning the economies of the Twelve. This was discussed at summits in Madrid and Strasburg during 1989, with Britain (or principally Prime Minister Margaret Thatcher) standing out against acceptance of the plan as it stood--despite the enthusiasm of other member states--because of the implied threat to national sovereignty; stage one was, however, adopted. In June 1990, Chancellor of the Exchequer John Major made a counter-proposal for the phased introduction of a common currency, designed to minimize the effect on sovereignty (see ecu). One result of all this discussion has been the very widespread use of the abbreviation in newspapers and the media generally during the late eighties and early nineties. The EC's main debate a few months ago centered on 'EMU', or how to achieve economic and monetary union after 1992. International Management Mar. 1990, p. 21 EC monetary officials interpreted Mr Major's emphasis on the elements of agreement between the British government and the other EC countries on crucial aspects of the plan for EMU as a deliberate signal of a new line in London. Guardian 2 Apr. 1990, p. 8