The Legal Framework for the Use of the Euro. Questions and Answers on the Euro Regulations.

As from 1 January 1999, the competence for monetary policy, exchange rate policy and currency law for the Member States which adopt the single currency will be transferred to Community level. The monetary policy of the Euro area will be defined and implemented by the European System of Central Banks (Article 105 of the Treaty). The exchange rate policy will be determined by the Council , with the ESCB and the Commission being involved according to the provisions of the Article 109 of the Treaty.