European Monetary Institute
Encyclopedia
The European Monetary Institute (EMI) was the forerunner of the European Central Bank
(ECB), operating between 1994 and 1997.
(EMCF). The EMI met for the first time on 12 January under its first President, Alexandre Lamfalussy
. On 1 July 1997 Lamfalussy was replaced by Wim Duisenberg
who would then go on to serve as the ECB's President. The institute was dissolved on 1 June 1998 with the creation of the ECB and the European System of Central Banks
(ESCB) which took over its expanded responsibilities as the euro
was launched.
. The EMU encouraged cooperation between the national banks of the member states
of the European Union
(EU) and laid the foundation for the euro
. It had less than 250 staff, mostly seconded from national central banks, and was based in the Eurotower
, Frankfurt
(Germany
), where the ECB is now based.
European Central Bank
The European Central Bank is the institution of the European Union that administers the monetary policy of the 17 EU Eurozone member states. It is thus one of the world's most important central banks. The bank was established by the Treaty of Amsterdam in 1998, and is headquartered in Frankfurt,...
(ECB), operating between 1994 and 1997.
History
The EMI was created 1 January 1994 to oversee the second stage in the creation of monetary union. The EMI itself took over from the earlier European Monetary Cooperation FundEuropean Monetary Cooperation Fund
The European Monetary Cooperation Fund is an institution and a fund established in 1973 by members of the European Exchange Rate Mechanism of the European Union to stabilise exchange rates. It was succeeded by the European Monetary Institute which is now part of the European Central Bank....
(EMCF). The EMI met for the first time on 12 January under its first President, Alexandre Lamfalussy
Alexandre Lamfalussy
Baron Alexandre Lamfalussy , is a European economist and central banker.Born in Hungary, Lamfalussy studied at the Catholic University of Leuven and Nuffield College, Oxford, where he received his doctorate in economics...
. On 1 July 1997 Lamfalussy was replaced by Wim Duisenberg
Wim Duisenberg
Willem Frederik "Wim" Duisenberg was a Dutch politician of the Labour Party . He was the first President of the European Central Bank from 1 July 1998 until 31 October 2003. He was instrumental in the Introduction of the euro in the European Union in 2002. He was also credited for making numerous...
who would then go on to serve as the ECB's President. The institute was dissolved on 1 June 1998 with the creation of the ECB and the European System of Central Banks
European System of Central Banks
The European System of Central Banks is composed of the European Central Bank and the national central banks of all 27 European Union Member States.-Functions:...
(ESCB) which took over its expanded responsibilities as the euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
was launched.
Role
The EMI and was the key monetary institution of the second phase of the Economic and Monetary Union of the European UnionEconomic and Monetary Union of the European Union
The Economic and Monetary Union is an umbrella term for the group of policies aimed at converging the economies of members of the European Union in three stages so as to allow them to adopt a single currency, the euro. As such, it is largely synonymous with the eurozone.All member states of the...
. The EMU encouraged cooperation between the national banks of the member states
Member State of the European Union
A member state of the European Union is a state that is party to treaties of the European Union and has thereby undertaken the privileges and obligations that EU membership entails. Unlike membership of an international organisation, being an EU member state places a country under binding laws in...
of the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
(EU) and laid the foundation for the euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
. It had less than 250 staff, mostly seconded from national central banks, and was based in the Eurotower
Eurotower (Frankfurt)
The Eurotower is a skyscraper located in the Bankenviertel of Frankfurt, Germany.The tower is tall, with 40 floors and 78.000 m² of office space...
, Frankfurt
Frankfurt
Frankfurt am Main , commonly known simply as Frankfurt, is the largest city in the German state of Hesse and the fifth-largest city in Germany, with a 2010 population of 688,249. The urban area had an estimated population of 2,300,000 in 2010...
(Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
), where the ECB is now based.