The exchange rate mechanism's role in the european monetary system

The European Community was established with the intent of reaching full economic, monetary, and political union among its member countries. The three elements of the European Monetary System—the Exchange Rate Mechanism, the European Currency Unit, and the European Monetary Fund—were designed to work together to achieve monetary integration among the member states. German reunification, as a result of the collapse of the Berlin Wall, played an important role in the failure of the Exchange Rate Mechanism. Many steps will need to be taken in order for the European community to obtain full economic and monetary union.