The European Monetary System (EMS) was established in 1979 to promote monetary stability among European countries. It aimed to reduce exchange rate variability and achieve monetary cooperation, paving the way for the eventual creation of the Euro. The system included mechanisms like the Exchange Rate Mechanism (ERM) to manage currency fluctuations. The EMS was a precursor to the Economic and Monetary Union (EMU) and the introduction of the Euro in 1999. It facilitated closer economic ties among member states, helping them coordinate their monetary policies and stabilize their currencies in preparation for a unified currency system.