Introduction Just a few days ago, the key political decisions which will pave the way to EMU were taken at the summit in Brussels. Based upon the preparatory work of the European Monetary Institute, the Commission and ECOFIN, the Council of the Heads of State or of Government agreed last weekend to start Stage Three of EMU on January 1, 1999, with eleven countries.
At the same time, the bilateral exchange rates for the participating currencies, which are to form the basis for their euro conversion rates, were preannounced. The European Central Bank will be formally inaugurated in Frankfurt on June 30, and EMU will commence on schedule on January 1, 1999.