The TMS core-concept introduces the ‘Euro-Currency-Units-Exchange-Rate-Mechanism (ECU-ERM)’ within the Euro Pact.

The ECU-ERM is an innovative exchange-rate-mechanism. ….A new ‘architecture’ for EMU and the Euro, especially designed, suitable and essential for the diverse and economically divergent Euro zone. ….It will turn the European Economic and Monetary Union (EMU) into a ‘flexible’ union. ….And therefore it repairs the primary flaw of the present ‘rigid’ Euro Pact.

The ECU-ERM is based on the ‘functions of money’ theory, and it separates the ‘means-of- payment’ function from the ‘currency-unit’ function of money. Payment can be done either physically (by cash money = legal tender) or electronically (by settling bank accounts). The currency-unit is the ‘unit of account’ for the determination of the level of prices and wages in a currency-area vis-a-vis that level in other currency-areas.

The ECU-ERM involves the introduction of new ‘National Currency-Units (NCU’s)’ alongside the already existing ‘Euro Currency-Unit (ECU)’. In full compliance with the EU-Treaty, the Euro (currency) can then remain the sole means of payment (including legal tender)’ .…and the ‘symbol’ of the post-war European unity.

The ECU-ERM introduces the ‘ECB-managed’ national monetary policies within the Euro Zone, and thus finally provides the urgently needed structure for ‘monetary devaluations’  ('fixed but adjustable exchange-rates') and ‘interest-rate-differentiation’ on a national (member state) level.

TMS also introduces a ‘smart’ (ECB-financed) bank union for the recapitalization of ‘troubled’ European system-banks in the last (European) stage. This to prevent bankruptcy of system-banks, thus to prevent destabilization of the financial system.

The Matheo Solution was first presented in 2010 by Dutch Euro-researcher André ten Dam. On the initiative of the prominent German economist Prof. Hans-Werner Sinn, in 2011 TMS was brought into the international scientific economic debate by the prestigious ‘IFO- Institute’ (München - Germany).

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‘The Matheo Solution (TMS)’ – For Matheo and all other Europeans !