How the european Single Currency evolved European Currency Reform Initiatives, 1969-1978 The Werner report(1969) It set out a blueprint for the stage-by-stage realization of Economic and Monetary Union by proposing a three phase program to Eliminate intra-European exchange rate movements Centralize EU monetary policy decisions Lower remaining trade barriers within Europe Two major reasons for adopting the euro To enhance Europe's role in the world monetary system To turn the European Union into a truly unified market Copyright C 2003 Pearson Education, Inc Slide 20-6Copyright © 2003 Pearson Education, Inc. Slide 20-6 How the European Single Currency Evolved European Currency Reform Initiatives, 1969-1978 • The Werner report (1969) – It set out a blueprint for the stage-by-stage realization of Economic and Monetary Union by proposing a three￾phase program to: – Eliminate intra-European exchange rate movements – Centralize EU monetary policy decisions – Lower remaining trade barriers within Europe • Two major reasons for adopting the Euro: – To enhance Europe’s role in the world monetary system – To turn the European Union into a truly unified market