Which treaty created the European Union and set the path toward the euro?

Which treaty created the European Union and set the path toward the euro? The answer is the Maastricht Treaty.

The Maastricht Treaty, formally the Treaty on European Union, was signed on 7 February 1992 in Maastricht, the Netherlands. It entered into force on 1 November 1993 and officially created the European Union, broadening European cooperation beyond the earlier economic communities.

The treaty established the framework for Economic and Monetary Union and set convergence requirements that countries had to meet before adopting the single currency. These included rules concerning price stability, public finances, exchange-rate stability and long-term interest rates. The treaty also established EU citizenship and strengthened cooperation in foreign policy, justice and home affairs.

The euro did not appear immediately after signature. Preparatory work, including the three-stage plan outlined in the Delors Report, led to the euro’s accounting launch in 1999 and the arrival of banknotes and coins in 2002. The Treaty of Rome created the earlier European Economic Community; the Treaties of Nice and Lisbon later reformed EU institutions rather than creating the Union or originating the euro project.