European Council Brussels, 05/12/1978

At the European Council in Brussels, the Heads of State and Government agreed to create a European Monetary System (EMS) from January 1, 1979, based on the idea of fixed but flexible exchange rates. Thus, efforts were renewed to create an area of monetary stability.
The currencies of all member states except the United Kingdom participated in the exchange rate mechanism known as ERM I. Exchange rates were based on central rates against the European Currency Unit or ECU (initially known as the European Unit of Account), which was a weighted average of the participating currencies. Within a decade, the EMS contributed significantly to reducing exchange rate volatility: the flexibility of the system, combined with the political determination for economic convergence, resulted in exchange rate stability.
Furthermore, among other things, the European Council took note of the reports from the Foreign Ministers and the Commission on the progress made during the previous year towards European Union. The European Council reaffirms the importance of the first direct elections to the European Parliament on 7-10 June 1979 and reiterates its determination to move further along the path towards an ever closer union among the peoples of Europe.