The European Monetary System (EMS) was replaced following the decision taken by the European Council on 16 June 1997 to set up an Exchange Rate Mechanism (ERM II) in the third stage of the Economic and Monetary Union. The aim of this Exchange Rate Mechanism is to ensure stability and solidarity in terms of exchange rates between those countries that have introduced the euro as their currency and those that have not. Primary objective: to prevent excessively large exchange-rate fluctuations between the EUR and the currencies of non-participating nations.