The third and final stages of European Economic and Monetary
Union (EMU) is scheduled to begin on 1 January 1999. At that point, those countries participating are to adopt irrevocably fixed exchange rates for their currencies. While countries will have to option of using the new European money – Euro- as from 1999, by 2002 it is to replace completely domestic currencies in circulation in member countries and is to be used denominate all financial and other business
transactions. The adoption of single currency, whether in steps or simultaneously in all countries, will represent a major regime shift. Some time in the new Century, the Euro could emerge as a major international currency with implications for other countries as well.