Stage Three of emu

On 1 January 1999 the third and final stage of EMU commenced with the irrevocable fixing of the exchange rates of the currencies of the 11 Member States initially participating in Monetary Union and with the conduct of a single monetary policy under the responsibility of the ECB.

The number of participating Member States increased to 12 on 1 January 2001, when Greece entered the third stage of EMU. Since that day the Bank of Greece has been part of the Eurosystem.

Vocabulary

To confirm	Подтверждать
Council	Совет
Objective	Цель
To mandate	Давать полномочия
To propose	Предлагать
To lead to	Приводить к чему-либо
To achieve	Достигать
Discrete	Благоразумный, сдержанный
Stage	Этап
Restriction	Ограничение
To abolish	Аннулировать, уничтожать
Additional	Дополнительный
Responsibility	Ответственность
To promote	Содействовать
To revise	Пересматривать
The Treaty	Договор
Negotiations	Переговоры
Statute	Устав
To cease	Прекращать
To exist	Существовать
To strengthen	Укреплять, усиливать
Conduct	Управление, руководство
Creation	Создание
Subsequently	В последствии
Composition	Состав
Unanimously	Единодушно
To fulfill	Выполнять
Conditions	Условия
Adoption	Принятие
Initial	Первоначальный
To appoint	Назначать
Executive Board	Исполнительный совет
To take effect	Вступать в действие
To constitute	Составлять
To define	Определять
To complete	Завершать, выполнять
To commence	Начинать(ся)
Irrevocable	Бесповоротный, окончательный

SUGGESTED ACTIVITIES

Drill 1. Find the equivalents for the following phrases in the text:

• подтверждать цель;

• предстоящее введение в жизнь Экономического и Валютного союза;

• предложить конкретные этапы подобного объединения;

• аннулировать ограничения на движение капитала между странами-участницами;

• играть все более важную роль в сотрудничестве в сфере денежно-кредитной политики;

• достижение стабильности цен;

• пересматривать договор с тем, чтобы основать необходимую организационную структуру;

• ознаменовать начало второго этапа;

• Комитет управляющих прекратил свое существование;

• укреплять сотрудничество центральных банков;

• осуществление единой денежно-кредитной политики;

• создание единой валюты;

• вводить в обращение;

• выполнять условия, необходимые для участия в третьем этапе;

• принятие единой валюты;

• рекомендовать к назначению в качестве членов Исполнительного Совета;

• формулировать и определять единую денежно-кредитную политику;

• начать с окончательного фиксирования обменных курсов валют стран-участниц.

Drill 2. Paraphrase the underlined words and expressions:

1. In 1988 the European Council confirmed the aim of the forthcoming realization of the EMU.

2. The Committee with Jacques Delors as the head of it proposed certain steps leading to this union.

3. At the first stage all limits on the movement of capital between the Member States were cancelled.

4. With the establishment of the European Monetary Institute the Committee of Governors finished its activities.

5. The final stage of the EMU started with the irrevocable fixing of the exchange rates of the currencies of the 11 Member States.

Drill 3. Find the words and expressions with the opposite meaning in the text:

• To start;

• Fluctuation;

• To weaken;

• Final;

• Abolishment;

• To elect;

• The first stage;

• To define the tasks;

• To decline.

Drill 4. Find the nouns related to the following verbs:

To realize	To negotiate
To chair	To govern
To restrict	To prepare
To move	To compose
To create	To participate
To respond	To adopt
To consult	To appoint
To establish	To define

Drill 5. Using the words in the brackets as a guide supply definitions for the following terms:

1. National currency (money, to issue, central bank, country)

2. Exchange rate (price, currency, in terms of, some, other)

3. “Euro” (name, single, European, currency, unit, to put, circulation, 1 January 2002)

4. European Central Bank (financial institution, to establish, 11, European, Member State, in order to, to conduct, single, monetary policy)

5. Monetary policy (tool, macroeconomic policy, to involve, regulation, money supply, credit, interest rates, in order to, to control, the level, spending, economy)

Drill 6. Reproduce the context the words and phrases below are used in:

• European Monetary Institute, the first task, central bank, to strengthen, cooperation, co-ordination, monetary policy;

• the second task, to make preparations, to require, establishment, the European System of Central Banks, conduct, single monetary policy, creation, single European currency.

Drill 7. Answer the following questions:

1. When did the idea of the Economic and Monetary Union appear?

2. When did the first stage of the EMU begin?

3. What events did the first stage include?

4. What events did the second stage include?

5. What was the main aim of the European Central Bank establishment?

6. When was the single European currency introduced?

7. How many countries initially entered the Economic and Monetary Union?

8. What was the essence of the final stage of the EMU?

Drill 8. Supply the correct verb forms and translate the abstract:

The cash changeover (to be) a challenge of unprecedented dimensions. It involved the banking sector, security carriers, retailers, the cash-operated machine industry and the general public. Euro cash (to provide) early to banks (frontloading) and retailers (sub-frontloading) to avoid bottlenecks in the supply chain. Distribution (to start) in September 2001. This (to mean) that euro cash (to be) widely available in all sectors in the first days of 2002. On 3 January 2002 96% of all automated teller machines in the euro area (to dispense) euro banknotes. One week later more than half of all cash transactions (to conduct) in euro. The cash changeover (to complete) within two months. National banknotes and coins (to cease) to be legal tender before or at the end of February 2002. By that time, more than 6 billion banknotes and close to 30 billion national coins (to withdraw).