What is the 'Maastricht Treaty'

The Maastricht Treaty, known formally as the Treaty on European Union, is the international agreement responsible for the creation of the European Union (EU).

BREAKING DOWN 'Maastricht Treaty'

The Maastricht Treaty was approved by heads of government of the states making up the European Community (EC) in December 1991. The treaty required voters in each country to approve the European Union, which proved to be a hotly debated topic in many areas. The agreement took ended with the creation of the European Union and has since been amended by other treaties. The Maastricht Treaty was signed on February 7, 1992, by the leaders of 12 member nations (Belgium, Italy, Luxembourg, France, Netherlands, West Germany, Denmark, Ireland, United Kingdom, Greece, Portugal and Spain). The treaty entered into force November 1, 1993.

Effects of the Maastricht Treaty and European Unionization 

The Maastricht Treaty had a few major areas of impact.

One was citizenship. The treaty, in forming the European Union (EU), granted EU citizenship to every person with citizenship of a member state. It enabled people to run for local office and for European Parliament elections in the EU country they lived in, regardless of nationality.  

One was economic policy. It created a common economic and monetary union, with a central banking system and common currency (Euros (EUR)). The European Central Bank (ECB) had one main objective: to maintain price stability; basically, to safeguard the value of the euro. It also created a roadmap towards the introduction and implementation of the euro. This started with free movement of capital between the member states, which then graduated into increased cooperation between national central banks and the increased alignment of economic policy among member states. The final step was the introduction of the euro itself, along with the implementation of a singular monetary policy, coming from the ECB. It also introduced the criteria that countries must meet in order to join the euro. This was a measure to ensure that countries joining the euro were stable in inflation, levels of public debt, interest rates, and exchange rates

One was security and defense policy and practice. 

One was greater policy cooperation and coordination more generally. The environment, policing and social policy were just some of a number areas in which the countries aimed to increase cooperation and coordination. 



  1. Lisbon Treaty

    The Lisbon Treaty updated regulations for the European Union, ...
  2. Eurozone

    The eurozone is a geographic area that consists of the European ...
  3. European Union - EU

    The European Union (EU) is a group of countries that acts as ...
  4. Tax Treaty

    A bilateral agreement made by two countries to resolve issues ...
  5. IRS Publication 597

    A document published by the Internal Revenue Service (IRS) that ...
  6. European Economic and Monetary ...

    The European Economic and Monetary Union (EMU) combined the European ...
Related Articles
  1. Managing Wealth

    What Taxes Do I Owe On Retirement Accounts Abroad?

    If you're a U.S. retiree, but previously worked abroad, here's what you need to know about taxes on foreign pensions and retirement accounts.
  2. Trading

    Behind The Euro: History And Future

    The euro was designed to create economic parity among eurozone nations. Discover where it's going and where it's been.
  3. Trading

    Pound Falls as May Promises March Brexit Move

    The pound fell to a three-year low against the euro following Theresa May's promise to begin Brexit negotiations in the first quarter of next year.
  4. Trading

    The Euro: What Every Forex Trader Needs To Know

    Find out the reports and events that determine the euro's worth, and how we can predict movements in its valuation.
  5. Investing

    Economic Conditions That Helped Cause World War II

    Dire economic conditions following the First World War intensified antagonisms between nations that would eventually lead to the outbreak of World War II.
  6. Investing

    Why Britain Withdrew From The ERM

    Britain may have dodged a bullet, but it certainly was not an innocent bystander and still managed to become collateral damage.
  7. Insurance

    Facultative vs. Treaty Reinsurance: Differences and Examples

    Reinsurance companies offer insurance to other insurers in case the traditional insurer does not have enough money to pay claims against its written policies.
  8. Taxes

    When is Dual Citizenship Not a Good Idea?

    It may sound useful, but there are a number of reasons that make dual citizenship a questionable choice.
  9. Financial Advisor

    Ways You Can Short Europe

    Solutions addressing the woes of the eurozone are varied. Here are some ways you can weather the storm.
  1. Why doesn't England use the euro?

    Understand why the United Kingdom has opted to not join the eurozone in adopting the euro over the pound sterling as its ... Read Answer >>
Hot Definitions
  1. Perfect Competition

    Pure or perfect competition is a theoretical market structure in which a number of criteria such as perfect information and ...
  2. Compound Interest

    Compound Interest is interest calculated on the initial principal and also on the accumulated interest of previous periods ...
  3. Income Statement

    A financial statement that measures a company's financial performance over a specific accounting period. Financial performance ...
  4. Leverage Ratio

    A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt, or ...
  5. Annuity

    An annuity is a financial product that pays out a fixed stream of payments to an individual, primarily used as an income ...
  6. Restricted Stock Unit - RSU

    A restricted stock unit is a compensation issued by an employer to an employee in the form of company stock.
Trading Center