Economic and monetary union

An economic and monetary union (EMU) is a type of trade bloc composed of an economic union (common market and customs union) and a monetary union. An economic and monetary union (EMU) is a type of trade bloc composed of an economic union (common market and customs union) and a monetary union. An EMU is established through a currency-related trade pact and the sixth stage of economic integration. In other words, it combines a customs union with a common market. An intermediate step between a pure EMU and a complete economic integration is the fiscal union. An EMU is distinguished from a mere monetary union (e.g. the Latin Monetary Union in the 19th century) as it does not involve a common market. Additionally, the autonomous and dependent territories, such as some of the EU member state special territories, are sometimes treated as separate customs territory from their mainland state or have varying arrangements of formal or de facto customs union, common market and currency union (or combinations thereof) with the mainland and in regards to third countries through the trade pacts signed by the mainland state. The first talks regarding the creation of some form of union occurred in 1969 at the summit in the Hague. As a result of these talks, a draft plan was announced by the heads of various member states, as well as the main member Pierre Werner, Prime Minister of Luxembourg. The decision to form the EMU was accepted in December 1991 and later became part of the Maastricht Treaty (the Treaty on European Union).