This thesis examines the establishment of the European Monetary Union (EMU) and its effects on the European economy. The paper begins with an overview of the idea of history on the economic integration of Europe and previous attempts at monetary cooperation. Emphasis is placed on the Maastricht Treaty, which laid the foundations for the creation of the EMU. After that, the institutional framework and the role of the European Central Bank in the EMU are analyzed. It also explores the economic effects of EMU, including increased internal trade and competitiveness, as well as the challenges facing the Eurozone, including macroeconomic crises and political factors. Finally, the paper concludes with a discussion on the long-term sustainability of EMU and the need for institutional reforms. This paper provides a fundamental insight into the EMU and contributes to the debate on the further development of economic integration within Europe.