Maastricht Treaty Signed
The Maastricht Treaty was signed, creating the European Union
February 07, 1992
From Economic Community to Political Union
The Maastricht Treaty was signed on February 7, 1992, in the Dutch city of Maastricht by the twelve member states of the European Community. The treaty formally established the European Union, transforming what had been primarily an economic arrangement into a broader political project. It created the framework for a single European currency, set out criteria that countries would need to meet to adopt it, established European citizenship, expanded the European Parliament's powers, and created new areas of cooperation in foreign policy, defense, and justice. The treaty represented the most ambitious step in European integration since the founding treaties of the 1950s.
Ratification and Controversy
Ratifying the Maastricht Treaty proved difficult. Danish voters rejected it in a referendum in June 1992, sending shock waves through Europe. French voters approved it by only the narrowest margin of 51 percent in September 1992. Britain experienced a dramatic political crisis over the treaty ratification in Parliament, and the pound was forced out of the European Exchange Rate Mechanism in September 1992 on a day that became known as Black Wednesday. Denmark eventually ratified the treaty in a second referendum after being granted opt-outs from the single currency and certain other provisions. The treaty finally entered into force on November 1, 1993.
The Euro and European Integration
The euro was introduced as a currency for financial transactions in 1999 and as physical banknotes and coins in 2002, initially adopted by twelve EU member states. The eurozone has since expanded to twenty countries. Maastricht also set the stage for the EU's enlargement eastward, with many former communist states joining in the 2000s. The treaty's legacy is contested. Supporters credit it with anchoring peace and prosperity across a continent that had experienced two devastating world wars in the 20th century. Critics argue it pushed integration further and faster than European peoples wanted, contributing to the democratic backlash that culminated in Britain's vote to leave the EU in 2016. Read about the Brexit referendum.