What is European Monetary Union?

Legal Definition
The monetary system of member European nations that is based on coordinated management of INTEREST RATES, FOREIGN EXCHANGE rates, and INFLATION. The EMU created the EUROPEAN CENTRAL BANK to guide its policies, and developed and introduced the EURO as its core currency. The original 11 original participating countries Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, Portugal, and Spain were joined by Greece in 2003.