December 31st, 1998
Exchange rates irrevocably fixed.
Final official euro (EUR) rates compared with participating currencies calculated by the Commission at 11.30 CET.
Rates for adoption by the Council of the Europe as the irrevocable conversion rates for the euro at 12.30 CET in a televised Council session. At the same time, the European Commission will make these proposed rates public via Internet and financial information providers.
The Council will adopt the regulation and will inform the public of its adoption at around 13.30 CET.
Euro rates applicable from midnight local time.
January 1st, 1999
The euro comes into being.
One euro to be equivalent to ECU 1. National currencies continue to be legal.
TARGET system comes into operation for cross-border settlements. Private sector free to use national currencies or euros.
Banks offer euro denominated bank accounts.
European Central Bank (ECB) becomes fully operative. Germany assumes Presidency of the EU.
January 4th, 1999
First euro working day - financial markets open.
Stock exchange and money and bond markets switch to the euro.
January 7th, 1999
ECB Governing Council meeting (executive board plus euro-11 national bank governors). The Council currently meets fortnightly.
June 1999
European Parliament elections
July 1st, 1999
Finland assumes Presidency of the EU
January 1st, 2000
Portugal assumes Presidency of the EU
July 1st, 2000
France assumes Presidency of the EU
January 1st, 2001
Transactions between retailers and suppliers to convert to euro under IBEC code of practice for the Irish Grocery Trade
Sweden assumes Presidency of the EU
July 1st, 2001
Belgium assumes Presidency of the EU
October 1st, 2001
Minimum requirement to start dual pricing under IBEC code of practice for the Irish Grocery Trade
December 31st, 2001
Deadline for euro introduction, all companies must be "euro compliant"
January 1st, 2002
Euro notes and coins to come into circulation as legal tender alongside national currencies.
Withdrawal of national notes and coins will begin. Public administrations to have finalised changeover to the euro.
Spain assumes Presidency of the EU
March 31st, 2002
Latest date for the end of dual pricing under IBEC code of practice for the Irish Grocery Trade
May 6th, 2002
Last possible date for British general election.
July 1st, 2002
Latest possible date for domestic currencies in EMU area to lose their legal status i.e. national notes and coins cease to be legal tender and the changeover to the euro will be complete.
Denmark assumes Presidency of the EU.
The European Central Bank
Together with the national central banks, the ECB will constitute the European System of Central Banks (ESCB), which will assume responsibility for monetary policy in Stage III of EMU, which begins on January 1st, 1999. The primary objective of the ESCB will be to maintain price stability. It will be a requirement of Stage III that not only the ECB, but also the national central banks, shall be independent of community institutions and bodies, as well as of national governments.
By January 1st, 2002 at the latest, the ESCB will put euro bank-notes into circulation and start exchanging national bank-notes and coins against them. At the latest six months after the introduction of the euro bank-notes and coins, the changeover to the single currency must have been completed for all operations and all agents. National bank-notes and coins will lose their legal tender status and the euro bank-notes and coins will become the only legal tender within the euro zone.
The Stability Pact
The purpose of the Stability Pact agreed at the Amsterdam European Council Summit is to prevent excessive national budget deficits, defined as greater than 3 per cent of GDP. It is an instrument of prevention and dissuasion. Sanctions will be used as a last resort.
Member-states in the euro zone will be obliged to submit stability programmes setting out cyclically-adjusted fiscal targets. Non-euro member-states will continue to submit similar plans (so called convergence programmes) which set out the steps to be taken to ensure their compliance with the convergence criteria (and thus their future membership of EMU).
Every state will have to prepare multi-annual stability programmes setting out budgetary objectives. Implementation of the programmes will be continuously monitored by the Commission and the Council, which can recommend policy adjustments if the programmes are not being adhered to. The pact also provides for sanctions to deter any state tempted to depart from its stability programme.
If the Council of Economic and Finance Ministers (ECOFIN) confirms that there is an excessive deficit, it will recommend the state concerned takes the necessary corrective measures within four months. Normally, ECOFIN will expect the deficit to be corrected within a year of its occurrence.
The New Exchange Rate Mechanism (ERM2)
With the start of Stage III of EMU, The European Monetary System will be replaced by the Exchange Rate Mechanism (ERM) agreed in Amsterdam. The operating procedures will be specified later in an agreement between the European Central Bank (ECB) and the national central banks of the member-states outside the euro-zone.
Participation in the exchange rate mechanism will be voluntary (as with membership of the current ERM).
A central rate against the euro will be defined for the currency of each member-state outside the euro-zone participating in ERM2. A standard fluctuation band of plus or minus 15 per cent around the central rates (similar to the current ERM) will apply. However, narrower bands for some currencies are likely.
In principle, ERM2 currencies should get unlimited and automatic central bank intervention to keep them within their trading bands.
The ECB and the non-participating central banks will have the right to suspend intervention unilaterally. Under monetary union, the ECB's sole priority will be to keep prices stable.
The Growth And Employment Pact
The Amsterdam European Council Summit calls for an enhanced and broadened co-ordination of member-states' economic policies, focusing in particular on employment policies. Moreover, a new role is envisaged for the European Investment Bank in creating employment through investment opportunities.
More attention will be given to improving European competitiveness. Special attention will be given to labour and product market efficiency, technological innovation, the potential for small and medium-sized enterprises (SMEs) to create jobs, training and education systems, including life-long learning, work incentives in the tax and benefit system, and the reduction of non-wage labour costs.
