European Monetary Agreement

Not to be confused with European Monetary System.

The European Monetary Agreement (EMA) was an economic arrangement signed by 17 European countries in Paris on the 5th of August 1955.[1] It replaced the European Payments Union which ended in 1958.[2] The EMA was administered by the Organisation for Economic Co-operation and Development (OECD).[3] The OECD did this to achieve economic integration by coordinating the exchange rates of the 17 member countries.[4] This allowed the countries to directly convert their currencies and integrate their balance of payments accounts, which promoted free trade.[5] Due to advanced facilities offered by the International Monetary Fund, the EMA was ended in 1972.[6] The European Economic Community oversaw the EMA aiming to achieve a greater level of economic integration within Europe.[2] The European Economic Community was the legal successor at the time, however it has advanced and is now referred to as the European Union.[7]

European Monetary Agreement
Duration17 years
MotiveEuropean economic integration
OutcomeCurrency convertibility across Europe
  1. ^ "The European Payments Union - Historical events in the European integration process (1945–2014) - CVCE Website". www.cvce.eu. Retrieved 2020-05-25.
  2. ^ a b Ingram, J (1973). "The case for European Monetary Integration" (PDF). 98: 1–27 – via Princeton University. {{cite journal}}: Cite journal requires |journal= (help)
  3. ^ The Columbia Electronic Encyclopedia (2012). "European Monetary Agreement". www.infoplease.com. Retrieved 2020-05-28.
  4. ^ Jones, Dallas (1957). "The European Monetary Agreement, the European Payments Union, and Convertibility". The Journal of Finance. 12 (3): 333–347. doi:10.1111/j.1540-6261.1957.tb04142.x.
  5. ^ "European Monetary Agreement: guide to the new convertible currencies how scheme works". South China Morning Post. 1959.
  6. ^ "European Monetary Agreement Organisation". archives.eui.eu. 2013. Retrieved 2020-05-26.
  7. ^ Dinan, Desmond (2014), "The Limits of European Union", Europe Recast, Macmillan Education UK, pp. 305–351, doi:10.1007/978-1-137-43645-0_10, ISBN 978-1-137-43644-3