Editing European Monetary System (section)

===1972: the Werner Report is published and EEC countries peg their currencies===
A group of experts, led by the Prime Minister and Minister of Finance of Luxembourg, [[Pierre Werner]], met and produced the [[Werner Report]], which was published on 8 October 1970 and outlined the structure and function of the EMS{{Citation needed|date=January 2021}}. On the basis of the Werner Report, the EEC began moving to a single economy in three stages. The final stage economy was to have a fixed exchange rate but no single currency. After the abandonment of the [[Bretton Woods system]] in 1971, the EEC took action. In October 1972, the EEC's Paris summit adopted the recommendations of the Werner Report and, as a result, the EEC currencies were adjustably pegged to one another in a scheme known as the [[snake in the tunnel]].<ref name="Investopedia: the European Monetary System" /><ref name="Artis-1987">{{Cite journal|last=Artis|first=M.J.|date=1987|title=The European monetary system: An evaluation|journal=Journal of Policy Modeling|volume=9|issue=1|pages=175–198|doi=10.1016/0161-8938(87)90008-1|issn=0161-8938}}</ref> The currency snake established a single currency fluctuation band of +/-2.25%, however Italy left the snake already in 1973.<ref>Eichengreen 2008, S. 153</ref>