What is the European Monetary Union?

Definition of European Monetary Union: This is also commonly referred as EMU. It can be defined as an agreement made by the European countries. This agreement consists of the protocols for the purpose of pooling the money reserves and for introducing an ordinary currency. The main aim of European Monetary Union is to establish a European currency known as Euro. This restores the different currencies of the European countries in the year 2002 in an official manner. The arrival of Euro was regarded as a recent episode in the ongoing story of attempts taken to move towards the monetary and economic integration in the Western part of Europe. Political changes in the fiscal cooperation in the Western Europe started when the World War II came to an end. At first, Bretton Woods peg system was invented. It was followed by a snake which was restored by the monetary system of Europe. This monetary system was destroyed in 1992. Every attempt failed because of the unbalanced association rules and due to the shortage of a central power to speak correct economic action. This time, the distinction with the Euro was a coordinating infrastructure which was put in a specific place. Nowadays, the Euro is regarded as a currency and financial transaction.