This document is an excerpt from the EUR-Lex website
Economic and monetary union (EMU) refers to the close coordination of the economic policies of the Member States at European level, with 18 European Union (EU) countries having gone further in adopting the euro as their currency. Under this policy, Member States are committed to avoid excessive budget deficits (‘Stability and Growth Pact’). The relevant background to EMU can be found in the Treaty on the Functioning of the European Union (Title VIII on economic and monetary policy).
In response to the 2008 sovereign debt crisis, economic and fiscal governance across the EU has been substantially reinforced, particularly in the euro area.