... of a complete monetary union). But the defining event was the Werner Report of 1970, delivered by the Luxembourg Prime Minister. This Report was the first attempt to talk about monetary union, and concluded that it could be a reality by 1980. Although this date was missed by almost 20 years, the Report had no rigid timetable. The 3 stages set out were I) the voluntary reductions of fluctuation margins between the currencies of Member States 11) total liberalisation of the flow of capital, and iii) the irrevocable fixing of the exchange rates between different currencies. The 1971 Smithsonian Agreement was an attempt to salvage Bretton Woods; each currency was allowed to fluctuate 2.25% either side of the existing $US exchange boundaries - giving EC currencies an effective margin of 9% - at the time, such a boundary was ineffective. An attempt to preserve a certain order in inter-European exchange movements ...

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