Euro in the context of Francqui Prize

An economic and monetary union (EMU) is a type of trade bloc that features a combination of a common market, customs union, and monetary union. Established via a trade pact, an EMU constitutes the sixth of seven stages in the process of economic integration. An EMU agreement usually combines a customs union with a common market. A typical EMU establishes free trade and a common external tariff throughout its jurisdiction. It is also designed to protect freedom in the movement of goods, services, and people. This arrangement is distinct from a monetary union (e.g., the Latin Monetary Union), which does not usually involve a common market. As with the economic and monetary union established among the 27 member states of the European Union (EU), an EMU may affect different parts of its jurisdiction in different ways. Some areas are subject to separate customs regulations from other areas subject to the EMU. These various arrangements may be established in a formal agreement, or they may exist on a de facto basis. For example, not all EU member states use the Euro established by its currency union, and not all EU member states are part of the Schengen Area. Some EU members participate in both unions, and some in neither.

Territories of the United States, Australian External Territories and New Zealand territories each share a currency and, for the most part, the market of their respective mainland states. However, they are generally not part of the same customs territories.

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment.

Money was historically an emergent market phenomenon that possessed intrinsic value as a commodity; nearly all contemporary money systems are based on unbacked fiat money without use value. Its value is consequently derived by social convention, having been declared by a government or regulatory entity to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private", in the case of the United States dollar.

In finance, an exchange rate is the rate at which one currency will be exchanged for another currency. Currencies are most commonly national currencies, but may be sub-national as in the case of Hong Kong or supra-national as in the case of the euro.

The exchange rate is also regarded as the value of one country's currency in relation to another currency. For example, an interbank exchange rate of 141 Japanese yen to the United States dollar means that ¥141 will be exchanged for US$1 or that US$1 will be exchanged for ¥141. In this case it is said that the price of a dollar in relation to yen is ¥141, or equivalently that the price of a yen in relation to dollars is $1/141.

A free trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement (FTA). Such agreements involve cooperation between at least two countries to reduce trade barriers, import quotas and tariffs, and to increase trade of goods and services with each other. If natural persons are also free to move between the countries, in addition to a free trade agreement, it would also be considered an open border. It can be considered the second stage of economic integration.

Customs unions are a special type of free trade area. All such areas have internal arrangements which parties conclude in order to liberalize and facilitate trade among themselves. The crucial difference between customs unions and free trade areas is their approach to third parties. While a customs union requires all parties to establish and maintain identical external tariffs with regard to trade with non-parties, parties to a free trade area are not subject to this requirement. Instead, they may establish and maintain whatever tariff regime applying to imports from non-parties as deemed necessary. In a free trade area without harmonized external tariffs, to eliminate the risk of trade deflection, parties will adopt a system of preferential rules of origin.

The economic and monetary union (EMU) of the European Union is a group of policies aimed at converging the economies of member states of the European Union at three stages.

There are three stages of the EMU, each of which consists of progressively closer economic integration. Only once a state participates in the third stage it is permitted to adopt the euro as its official currency. As such, the third stage is largely synonymous with the eurozone. The euro convergence criteria are the set of requirements that needs to be fulfilled in order for a country to be approved to participate in the third stage. An important element of this is participation for a minimum of two years in the European Exchange Rate Mechanism ("ERM II"), in which candidate currencies demonstrate economic convergence by maintaining limited deviation from their target rate against the euro.

A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes, coins,electronic balances in bank accounts, and central bank digital currencies (CBDCs).A more general definition is that a currency is a system of money in common use within a specific environment over time, especially for people in a nation state. Under this definition, the Pound sterling (£), euro (€), Japanese yen (¥), and U.S. dollars (US$) are examples of (government-issued) fiat currencies. Currencies may act as stores of value and be traded between nations in foreign exchange markets, which determine the relative values of the different currencies. Currencies in this sense are either chosen by users or decreed by governments, and each type has limited boundaries of acceptance; i.e., legal tender laws may require a particular unit of account for payments to government agencies.

Other definitions of the term currency appear in the respective synonymous articles: banknote, coin, and money. This article uses the definition which focuses on the currency systems of countries (fiat currencies).

Northern Italy (Italian: Italia Settentrionale, Nord Italia, Alta Italia) is a geographical and cultural region in the northern part of Italy. The Italian National Institute of Statistics defines the region as encompassing the four northwestern regions of Piedmont, Aosta Valley, Liguria and Lombardy in addition to the four northeastern regions of Trentino-Alto Adige/Südtirol, Veneto, Friuli-Venezia Giulia and Emilia-Romagna.

With a population of 27.5 million in an area of 120,312.72 km (46,453.00 sq mi) as of 2025, the region covers roughly 40% of Italy and contains 46% of its population. Two of Italy's largest metropolitan areas, Milan and Turin, are located in the region. Northern Italy's GDP was estimated at €1 trillion in 2021, accounting for 56.5% of the Italian economy.

The Council of Europe (CoE; French: Conseil de l'Europe, CdE) is an international organisation with the goal of upholding human rights, democracy and the rule of law in Europe. Founded in 1949, it is Europe's oldest intergovernmental organisation, representing 46 member states from Europe, with a population of approximately 675 million as of 2023; it operates with an annual ordinary budget of approximately 500 million euros.

The organisation is distinct from the European Union (EU), although people sometimes confuse the two organisations – partly because the EU has adopted the original European flag, designed for the Council of Europe in 1955, as well as the European anthem. No country has ever joined the EU without first belonging to the Council of Europe. The Council of Europe is an official United Nations observer.

The 1924 Summer Olympics (French: Jeux olympiques d'été de 1924), officially the Games of the VIII Olympiad (French: Jeux de la VIII olympiade) and officially branded as Paris 1924, were an international multi-sport event held in Paris, France. The opening ceremony was held on 5 July, but some competitions had already started on 4 May. The Games were the second to be hosted by Paris (after 1900), making it the first city to host the Olympics twice.

The selection process for the 1924 Summer Olympics consisted of six bids, and Paris was selected ahead of Amsterdam, Barcelona, Los Angeles, Prague, and Rome. The selection was made at the 20th IOC Session in Lausanne in 1921. The cost of these Games was estimated to be 10,000,000 F (equivalent to €10.1 million in 2022). With total receipts at 5,496,610 F (equivalent to €5.53 million in 2022), the Olympics resulted in a hefty loss despite daily crowds of up to 60,000. The United States won the most gold and overall medals, having 229 athletes competing compared to France's 401.

The Treaty on European Union, commonly known as the Maastricht Treaty, is the foundation treaty of the European Union (EU). Concluded in 1992 between the then-twelve member states of the European Communities, it announced "a new stage in the process of European integration" chiefly in provisions for a shared European citizenship, for the eventual introduction of a single currency, and (with less precision) for common foreign and security policies, and a number of changes to the European institutions and their decision-making procedures, not least a strengthening of the powers of the European Parliament and more majority voting on the Council of Ministers. Although these were seen by many to presage a "federal Europe", key areas remained inter-governmental with national governments collectively taking key decisions. This constitutional debate continued through the negotiation of subsequent treaties (see below), culminating in the 2007 Treaty of Lisbon.

In the wake of the Eurozone debt crisis unfolding from 2009, the most enduring reference to the Maastricht Treaty has been to the rules of compliance – the "Maastricht criteria" – for the currency union.

A currency union (also known as monetary union) is an intergovernmental agreement that involves two or more states sharing the same currency. These states may not necessarily have any further integration (such as an economic and monetary union, which would have, in addition, a customs union and a single market).

Maastricht (/ˈmɑːstrɪxt/ MAH-strikht, US also /mɑːˈstrɪxt/ mah-STRIKHT, Dutch: [maːˈstrɪxt] ; Limburgish: Mestreech [məˈstʀeːx]) is a city and a municipality in the southeastern Netherlands. It is the capital and largest city of the province of Limburg. Maastricht is located on both sides of the Meuse (Dutch: Maas), at the point where the river is joined by the Jeker. Mount Saint Peter (Sint-Pietersberg) is largely situated within the city's municipal borders. Maastricht is adjacent to the border with Belgium and is part of the Meuse-Rhine Euroregion, an international metropolis with a population of about 3.9 million, which includes the nearby German and Belgian cities of Aachen, Liège, and Hasselt.

Maastricht developed from a Roman settlement (Trajectum ad Mosam) to a medieval river trade and religious centre. In the 16th century it became a garrison town and in the 19th century an early industrial centre. Today, the city is a thriving cultural and regional hub. It became well known through the Maastricht Treaty and as the birthplace of the euro. Maastricht has 1,677 national heritage buildings (rijksmonumenten), the second highest number in the Netherlands, after Amsterdam. The city is visited by tourists for shopping and recreation, and has a large international student population. The last stage of the Cretaceous period and the Mesozoic era, the Maastrichtian, is named after this city, at the end of which was the Cretaceous–Paleogene extinction event, which resulted in the extinction of the non-avian dinosaurs.

The yen (Japanese: 円; symbol: ¥; code: JPY) is the official currency of Japan. It is the third-most traded currency in the foreign exchange market, after the United States dollar and the euro. It is also widely used as a third reserve currency after the US dollar and the euro.

The New Currency Act of 1871 introduced Japan's modern currency system, with the yen defined as 1.5 g (0.048 troy ounces) of gold, or 24.26 g (0.780 troy ounces) of silver, and divided decimally into 100 sen or 1,000 rin. The yen replaced the previous Tokugawa coinage as well as the various hansatsu paper currencies issued by feudal han (fiefs). The Bank of Japan was founded in 1882 and given a monopoly on controlling the money supply.

The United States dollar was established as the world's foremost reserve currency by the Bretton Woods Agreement of 1944. It claimed this status from sterling after the devastation of two world wars and the massive spending of the United Kingdom's gold reserves. Despite all links to gold being severed in 1971, the dollar continues to be the world's foremost reserve currency. Furthermore, the Bretton Woods Agreement also set up the global post-war monetary system by setting up rules, institutions and procedures for conducting international trade and accessing the global capital markets using the U.S. dollar.

The U.S. dollar is widely held by central banks, foreign companies and private individuals worldwide, in the form of eurodollar foreign deposit accounts (not to be confused with the euro), as well as in the form of US$100 notes, an estimated 75% of which are held overseas. The U.S. dollar is predominantly the standard currency unit in which goods are quoted and traded, and with which payments are settled in, in the global commodity markets.

A reserve currency is a foreign currency that is held by governments, central banks or other monetary authorities as part of their foreign exchange reserves. The reserve currency can be used in international transactions, international investments and all aspects of the global economy. It is often considered a hard currency or safe-haven currency.

The United Kingdom's pound sterling was the primary reserve currency of much of the world in the 19th century and the first half of the 20th century. However, by the middle of the 20th century, the United States dollar had become the world's dominant reserve currency.

Sterling (symbol: £; currency code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound is the main unit of sterling, and the word pound is also used to refer to the British currency generally, often qualified in international contexts as the British pound or the pound sterling.

Sterling is the world's oldest currency in continuous use since its inception. In 2022, it was the fourth-most-traded currency in the foreign exchange market, after the United States dollar, the euro, and the Japanese yen. Together with those three currencies and the renminbi, it forms the basket of currencies that calculate the value of IMF special drawing rights. As of late 2022, sterling is also the fourth most-held reserve currency in global reserves.

In macroeconomics and economic policy, a floating exchange rate (also known as a fluctuating or flexible exchange rate) is a type of exchange rate regime in which a currency's value is allowed to fluctuate in response to international events affecting exchange rates. A currency that uses a floating exchange rate is known as a floating currency. In contrast, a fixed currency is one where its value is specified in terms of material goods, another currency, or a group of other currencies. The idea of a fixed currency is to reduce currency fluctuations.

In the modern world, most of the world's currencies are floating, and include the majority of the most widely traded currencies: the United States dollar, the euro, the Japanese yen, the pound sterling, or the Australian dollar. However, even with floating currencies, central banks sometimes participate in markets to attempt to influence the value of floating exchange rates. The Canadian dollar has not seen interference by the Canadian national bank with its price since September 1998. The US dollar also sees very little change of its foreign reserves.