(EMU) the proposed European Community policy
for a single currency and common economic
policies. The proposal was announced by a
European Community committee headed by EC
Commission president Jacques Delors Apr 1989.
Three stages are envisaged for EMU. In the
first stage, all controls on individual
nations' capital flows would be ended, and
the European System of Central Banks (ESCB)
created. In stage two, the ESCB would begin
to regulate money supply. Finally, exchange
rates between member states would be fixed,
and a single European currency created, and
the ESCB would take over the function of all
the nations' central banks.