Sputnik News – January 5, 2017
On Wednesday the leader of France’s Front National party Marine Le Pen outlined her proposal for the return of the French franc, 15 years after it was phased out of use in favor of the Euro single currency.
Le Pen proposed using the European Currency Unit (ECU), a unit of account for EU member states based on a basket of their national currencies.
It was adopted in 1979 along with the European Monetary System (EMS) of closer monetary policy co-operation. The ECU was a reserve asset, for which EMS member states exchanged gold and dollars and used as a means of settlement. The EMS comprised a set of fixed currency exchange rate margins, calculated using the ECU and controlled through the Exchange Rate Mechanism (ERM).
On January 1, 1999, the ECU was replaced as the electronic unit of account by the euro, which became legal tender three years later.