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Literature has widely discussed the relevant role of financial development in determining atmospheric quality. However, there has not been much discussion of how financial inclusion (FIC) plays its role in environmental quality. Thus, this research aims to unveil the role of financial inclusion in determining the CO₂ emissions which serve as a proxy of environmental quality. In addition, this study examines the moderating role of corruption control (CC) in the nexus of FIC-CC.

The empirical results were based on 22 years of annual data from five Brazil, Russia, India, China and South Africa (BRICS) economies, covering the years 1996–2017. The authors use the autoregressive distributed lag (ARDL) model to check regression among variables.

The empirical findings first disclosed the positive impact of FIC whereas CC had an inverse impact on CO₂ emissions. However, the moderating role of CC was observed in mitigating the adverse impact of FIC on ecological quality. In addition, the statistical analysis further showed an inverse impact of economic growth and foreign investment and a positive impact of trade volume and energy consumption on CO₂ emissions.

This analysis states an important policy regarding integrated FIC and green environmental requirements. Additionally, the negative externality of FIC can be controlled by improving the CC.

This study complements the existing literature on FIC and environmental quality by adding the moderating role of CC.

In late July 1993, the European Monetary System threatened to unravel. The Exchange Rate Mechanism (ERM), which ties European Community members′ currencies together, faced the possibility of collapse as the French franc and other currencies pushed perilously close to the permissible bounds of fluctuation despite massive intervention by central banks. Similar conditions had forced the British pound sterling and Italian lira out of the ERM in September 1992. The short‐term resolution of the crisis was the decision to widen the permissible bounds of fluctuation. Examines the events leading to the ERM crisis, and the implications of the crisis and its resolution on the future of European economic integration are also examined. Finally, discusses the likely future of European economic and monetary union given the current economic and political climate of member countries.