The European Exchange Rate Mechanism was introduced in preparation for the Economic and Monetary Union of the European Union .
The European Exchange Rate Mechanism ( or ERM ) was a system introduced by the European Community in March 1979 , as part of the European Monetary System ( EMS ) , to reduce exchange rate variability and achieve monetary stability in Europe , in preparation for Economic and Monetary Union and the introduction of a single currency , the euro , which took place on 1 January 1999 .
European Exchange Rate Mechanism