What is the euro made from? Their own currency is closer: which EU countries have not switched to the euro? No costs for conversion operations

The internal policy of the European Union assumes that the members of the association will gradually switch to a common European currency - the euro, thereby becoming part of the Eurozone. Despite the obvious advantages of this approach, which involves abandoning their own national currencies, not all EU members are willing to implement it.

The community of states within the European Union that use the euro as their main national currency is called the Eurozone. At the same time, not all countries that are the largest representatives of the EU are members of this kind of community.

The first transition of a number of states to a single European currency was carried out on January 1, 2002, when the majority of participants in the future Eurozone abandoned the use of local funds. Eurozone member countries are gradually increasing their numbers, attracting more and more new members of the community. GDP for them is calculated jointly, which allows us to create an idea of ​​the real state of affairs in the community.

Thus, in 2019, the Eurozone includes 19 countries, among which:

When going on a tourist trip to one of these countries, the traveler will not need to prepare any amount of foreign currency to make purchases and payments on their territory. Indeed, in all these directions, as well as in payments between zones, the euro is used everywhere, which eliminates the need to use different types of currency.

Eurozone development trends

Despite the fact that not all states are optimistic about the idea of ​​​​transitioning to a single monetary system, the euro circulation area is constantly expanding. First of all, this applies to a number of countries that, by agreement, are switching to a similar currency without officially entering the Eurozone.

These include small-sized members of the Eurozone, such as the Vatican, Monaco, and San Marino. This makes it possible to stimulate both domestic and foreign tourism, simplifying the processes of monetary settlements. Eurozone GDP tends to show stable growth. This indicates that the economies of the countries included in it are experiencing a period of stable growth.

There are also a number of countries that are not officially members of such a commonwealth and have not entered into relevant agreements with its representatives. However, they also use the euro as the main currency within the state. A similar list includes Andorra, Montenegro, and the Republic of Kosovo.

When planning a trip to one of these countries, a traveler can be sure that besides the euro, he will not need any other types of currency. This is especially convenient if the tour includes visits to several countries at once, in which you will need to make any monetary transactions.

Which EU countries can you travel to without a visa - video.

Members of the European Union outside the Eurozone

As mentioned earlier, the transition to a single currency was not supported by all members of the European Union, which affected the GDP of the commonwealth. The most obvious opponent of such integration was Great Britain, which expressed a clear refusal, and then completely chose to leave the European Union based on the results of a referendum.

However, the list of countries with national currencies instead of a single one is not limited to the United Kingdom. It also includes:

  • Croatia;
  • Sweden;
  • Poland;
  • Czech Republic;
  • Bulgaria;
  • Denmark;
  • Romania.

Despite this, some of these states plan to become part of the Eurozone in the future. First of all, this Czech Republic, which expects to introduce the euro as its main currency in 2019. At the same time, Poland is not yet able to name specific dates for accession, due to doubts about the stability of such a commonwealth.

Sweden deserves special attention, as it has clearly expressed its disagreement with the terms of entry into the Eurozone, which is why it should not be considered a candidate for accession in the near future. At the same time, the country's GDP could significantly improve the overall statistics of the commonwealth.

The Danish government strives to become part of the community and use the euro on a permanent basis, but the local population reacted negatively to such a decision, and therefore it was repeatedly postponed.

Features of visiting countries outside the Eurozone

In the process of visiting the most interesting member countries of the European Union, a traveler may find himself in states that have their own national currencies. In this case, you will need to take into account several features that may affect both the convenience of payments and their overall size.

First of all, it is worth noting that Euro is accepted for payment in the vast majority of countries. This will allow you not to experience serious inconvenience when paying for various goods and services. However, their actual price may vary, because when using the euro, one must take into account its current exchange rate in relation to local currencies.

It seems noticeably more advantageous to use credit cards, which allow you to automatically convert the required amount of money, while cash will need to be exchanged quite often.

The history of the euro as the single currency of a united Europe is full of surprises, annoying mistakes and unfulfilled dreams. Today we accept this currency as a world currency, which is the only alternative to the dollar. At the same time, the concept of the euro has not yet exhausted its ambitions.

Euro: a project that can still grow! Characteristics and history of the euro

The bank code of the famous currency is EUR and it applies to almost all of Europe. Today, you can buy and sell this currency at exchange offices around the world. About 340 million inhabitants of the “Old World” are included in the money circulation zone. There is more than 1 trillion euros in cash circulation, and this money supply continues to grow. The European currency has surpassed the US dollar in absolute number of banknotes.

The euro regulatory system is determined by common institutions for the entire EU. Regulatory organizations include:

  • European System of Central Banks (ESCB);
  • European Central Bank (ECB, governing body);
  • National central banks of EU countries (Interesting:).

The share of the euro in global turnover is 32% (dollar 42%, third place yuan - 1.47%).

The history of the euro and its name

The history of the euro begins with the creation of a “name”. The author of the elegant and succinct name of the new currency was the Belgian, Esperantist Germain Pirlo. The name itself on banknotes is usually indicated in the Latin alphabet (“euro”) and the Greek alphabet (Ευρώ). The peculiarity of the phonetics of the name is that it does not have a rigid framework and is determined individually in each language. The only condition is that the pronunciation of the name of the currency is identical to the pronunciation of the word “Europe” in each language. So the authors emphasized the unity of all countries. The history of the euro currency is based on its name.

Coins and banknotes

Like many monetary units of the world, the euro has banknotes and coins. The gradation is standard: 1 euro = 100 cents. All coins are created according to a single template: the front side (obverse) is the denomination against the background of the outline of Europe, the back side (reverse) is national images that determine the country of minting of the coin. A uniform design has been developed for the banknotes, regardless of the country of origin. Banknote denomination: 5, 10, 20, 50, 100, 200, 500 euros. The largest denominations (200 and 500) are not issued in all countries.

All coins are suitable for settlements within the eurozone, regardless of where they were minted. The following denominations are in circulation: 1 euro cent, 2, 5, 10, 20, 50 cents, 1 and 2 euros. Depending on national payment traditions, in some countries prices for goods are formed in multiples of 5 in order to avoid the circulation of small coins of 1 and 2 euro cents.

€ Symbol: History of the Euro Currency Sign

The symbol of the single European currency, which has become recognizable and famous, according to accepted standards, should be printed in yellow on blue. The combination of colors is at the heart of the design of the symbol, along with geometric shapes and lines. The choice of symbol took place in several stages. First, the commission selected 10 options from a huge number of proposals. Then three options were selected by voting among EU residents. The winner was determined by the European Commission.

According to official data, the winning project was developed by a group of 4 experts. The names of the authors are not disclosed, which prompted disputes over authorship. For example, Arthur Eisenmanger (former lead designer of the EEC) claims to be the creator of the symbol, which was originally used as a common sign for Europe. The history of the emergence of the euro has quite a few hidden pages.

When did the euro begin to function?

Euros have been around for a relatively long time, and it feels much longer. For non-cash transactions, the currency has been used since January 1, 1999. Exactly 3 years later it began to circulate in cash. For the first 2 months of the currency’s existence (until February 28, 2002), new signs circulated in the eurozone countries in parallel with the national currency.

In what year and when did the euro appear as a single and only currency?

On January 1, 2002, the currency became a single one, and from March 1, 2002, the only one in the eurozone.

In which countries is the official currency the euro?

As of 2018, the euro circulates throughout the EU, but is recognized as the official currency only in 19 countries: Austria, Belgium, Germany, Greece, Ireland, Spain, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovenia, Slovakia , Finland, France, Estonia. And 9 more countries (7 of which are in Europe) have the euro as their official currency, but they cannot influence the banking aspects of circulation.

Euro sign location and separator type in different languages. Individual features of the one euro coin

Freedom of currency is expressed in many aspects. The location of the currency symbol may vary depending on the country. Each state reserves the right to write the amount and choose the separator. In the vast majority of cases, countries retained the writing format that their national currency had - this makes it easier to get used to the new money.

According to ISO standards, the currency symbol should be written after the numbers, but about half of the countries left it in front of the amount. The basis of monetary circulation is the 1 euro coin. The obverse of the coin varies and is determined by the place of minting. The reverse is decorated with a general map of Europe. The coin is made of 2 metals (bimetallic) - 75% copper and 25% nickel. There are currently about 7 billion of these coins in circulation.

History of the origin and introduction of the euro

The parallel circulation of national currencies and the newly introduced euro greatly simplified the introduction of the euro into circulation. It was possible to make a large-scale introduction of new banknotes in several countries, which in itself is a significant achievement. Those countries that became part of the eurozone after 2002 received 2 weeks of parallel treatment.

The history of the euro, as well as the history of its implementation, is a financial symbiosis of many economies. This led to close unification of the banking systems of many countries. We can say for sure that this has never happened in history. The history of the emergence of the euro in each country was strictly regulated by relevant legislative acts and represented a harmonious process. A large number of specialists worked on the history of the creation of the euro in each individual state.

Effects of the creation of the euro and the history of currency adoption

The introduction of a new single currency led to many effects, both planned and completely unexpected.

Eliminate exchange rate risks

The euro made it possible to create a single financial field where each participating country could freely exchange funds, avoiding the risks that arose due to differences in exchange rates between countries. Working with another country's money, importing/exporting, investing abroad - these types of activities have huge potential, but had many difficulties when each EU country had its own money. The introduction of the euro eliminated these problems.

Elimination of costs associated with conversion transactions

One currency for all countries eliminated such expense items as conversion services. When transferring one currency to another, the bank necessarily charges a certain percentage for the operation (see). If settlements take place between large companies and states, then the amount is more than significant. The introduction of the euro removed such problems.

More resilient financial markets

The history of the origin of the euro is the history of the formation of stability in a single economic space. The euro had a significant impact on the formation of stable market relations.

Price parity

Thanks to the introduction of the euro currency, it was possible to level out price ranges throughout Europe. The fact is that previously large-scale foreign exchange transactions could be found on the market based on the difference in exchange rates between countries. That is, the deal was concluded only in order to make a profit due to the difference in rates.

Competitive refinancing

The euro also made a splash on the securities market. Now companies could easily receive shares abroad without fear of losing profits.

Euro as a peg currency

Representatives of the region began to link their national currencies to the euro. This significantly accelerated and simplified the subsequent introduction of currency in new countries.

The origins of the euro as a reserve currency

Criticism of currency. Highest euro exchange rate in history

Since the emergence of currency (and even the idea of ​​currency itself), disputes have not subsided regarding the appropriateness of its appearance and the large number of threats. Here are some of those voiced by experts:

  • The ECB risks losing its independence under pressure from different countries of the union.
  • Different levels of inflation in the countries of the region limit the development and implementation of a single monetary policy.
  • Reducing the role of governments and their influence on the economy.

The history of the creation of the euro and its rapid introduction into the economies of all EU countries led to a rapid increase in its quotations. 5 years after its appearance, in 2004, the currency reached the highest euro exchange rate in history - $1.2930. Since then, the currency has risen quite high several times, but the highest euro exchange rate in history remains out of reach.

The history of the origin of the euro has a lot of interesting and relevant for today's economy. There is a lot for global financiers to learn here.

And instead of concluding, we’ll tell you a few interesting facts about the euro.

  1. The introduction of the euro led to mass purchasing of wallets in Italy. The size of the new currency banknotes turned out to be significantly wider than the lira. And for several months, the Apennine Peninsula experienced a boom in the purchase of wallets. Someone was able to make a lot of money from this.
  2. When developing the design of the currency, special attention was paid to the relief and structure of the material. The convex image on the banknote is aimed at ease of use by people with poor vision.
  3. The predecessor of the euro was the ECU. The single currency of the EU countries existed from 1979 to 1998.

By its appearance, the euro dollar or euro(single European currency) owes its creation to the European Union in 1992. This was a new stage in the development of European integration. The introduction of the euro occurred gradually: first in non-cash circulation, then cash bills were issued.

On January 1, 1999, at 0.00 o'clock European time, the countries of the European Economic and Monetary Union (EMU) introduced a single currency - the euro (EUR). From that moment on, the exchange rates of the national currencies of the participating countries in relation to the euro were rigidly fixed, and the euro became an independent full-fledged monetary unit. At this stage, both the euro and national currencies functioned in parallel and on an equal footing. Euro trading began on January 4, 1999.

The following conversion rates are established:

German mark 1.95583
French franc 6.55957
Italian lira 1936.21
Spanish peseta 166.386
Portuguese escudo 200.482
Finnish mark 5.94573
Irish pound 0.787564
Belgian/Luxembourg franc 40.3399
Dutch guilder 2.20371
Austrian schilling 13.7603

From 01/01/2002, during a period that each country determined independently (but not more than 6 months), euro banknotes and coins were introduced into circulation, replacing the previous banknotes and coins in national monetary units. Within six months, the old national banknotes and coins could still circulate on par with the euro. However, after 06/01/2002, the euro becomes the only legal tender in the Eurozone countries.

Fixing the exchange rates of national currencies in relation to the euro made it possible for investors not to take into account currency risks when assessing the effectiveness of projects. The emergence of the euro also made it possible to significantly save on the costs of circulation of national currencies, including costs associated with maintaining accounting records of transactions with the currencies of EU countries, insuring currency risks, exchange transactions, drawing up price lists in various currencies, etc.
If we consider that the German mark is the most stable monetary unit among European currencies, then it is quite logical to assume that in countries with less stable currencies the effect of the introduction of the EURO will be even more significant.

On January 1, 1999, with the introduction of the new single currency, the euro, its exchange rate to the dollar was set at 1 EUR = 1.1736 USD or 1 USD = 1.6665 DEM. It is now recognized that the dollar exchange rate at that time was, as it were, mistakenly undervalued, and the euro unreasonably overvalued. Indeed, very soon the dollar began to continuously rise in price, and the euro began to depreciate. In March 1999, geopolitical tensions associated with military operations in Yugoslavia and the danger of destabilizing the economic situation in Europe accelerated the depreciation of the euro. This resulted in the resignation of German Finance Minister Oskar Lafontaine, who was accused of planning deficiencies. But even the reduction in ECB rates that occurred almost immediately after the resignation of the Minister of Finance, which, in theory, was supposed to stimulate economic growth, could no longer change the situation - the EURO continued to fall. At the end of November 1999, parity between the euro and the dollar was achieved. Further, the European currency continued to fall against the American currency against the backdrop of a slowdown in economic growth in the Eurozone countries.

Throughout 2000, the euro/dollar exchange rate fell even more significantly, which provoked the world's largest central banks to take active action in the foreign exchange market. At the end of September 2000, the ECB, the US Treasury, the Bank of Japan, the Bank of England and a number of European banks conducted a joint intervention in support of the single European currency. According to economists, further depreciation of the euro could harm the global economy. The banks' actions were practically unsuccessful, since by October 2000 the euro had reached its historical minimum at $0.8230 per euro.
In addition, the head of the European Central Bank admitted that further interventions to support the euro would be counterproductive against the backdrop of the Middle East crisis, which has undermined the stability of currency markets around the world.

Further, when at the end of 2000 it became finally clear that the United States could not avoid a new recession, the Fed decided to ease monetary policy. During 2001, to bring the country's economy out of crisis and stimulate economic growth, the US interest rate was reduced three times and eventually dropped below 2% at the end of the year. As a result, due to the lower level of the US rate relative to the ECB rate, the American currency began to lose its position against the euro. In addition, on September 11, 2001, the American economy experienced a shock caused by terrorist attacks, which also did not give optimism to the dollar. After reaching a historical low against the dollar, the European currency made repeated attempts to recover throughout 2001, but was unable to rise above $0.96.

In January 2002, the euro was introduced into cash circulation. We can say that from this moment the gradual growth of the European currency began. At the end of March 2002, the speech of the head of the Federal Reserve Alan Greenspan regarding the fact that the recovery of the American economy was in doubt, added negativity for potential investors, and since April 2002 the euro has never again fallen below $0.87.

In July of the same year, the single European currency again reached parity with the dollar. Analysts began to talk about the collapse of the dollar as the most stable and strong currency in the world and predicted a further fall of the American currency on world currency markets. After this important event on the global foreign exchange market, the euro rolled back slightly due to the fact that representatives of the European Commission recognized the emerging problems with the budget deficit in the largest economies of the Eurozone. However, on December 6, the currencies aligned relative to each other, and from that moment until today, the single European currency has become more expensive than the American one. The reason for the fall of the dollar was the American economy, which again disappointed economists by not showing the growth that everyone expected from it.

US military actions in Iraq and fears of investors expecting negative consequences of the war on the American economy have taken their toll. From the beginning of 2003 to the end of May of the same year, the euro exchange rate against the dollar had already increased by 13% and approached the level of 1.1736, at which the single European currency began its official market life on January 4, 1999.

Finally, on Friday May 23, at the end of the working day in Tokyo and Hong Kong and at the beginning of the working day in Europe, the euro broke above the “birthday” level, after which numerous stops for the sale of the US currency were triggered. ECB officials have shown no concern about the euro's growth, despite data showing a decline in profits for European exporters and zero growth in Eurozone GDP in the first quarter of 2003 compared to the fourth quarter of 2002. According to ECB officials, the strengthening of the euro reflects fundamental economic conditions.

However, after reaching the maximum, the optimism of currency speculators began to wane. The state of the Eurozone economy began to actively deteriorate under the pressure of the rising national currency. Expectations for a significant reduction in the ECB interest rate have increased in European financial markets. At the ECB meeting on June 5, 2003, it was decided to reduce the key interest rate by 50 points to 2% to stimulate business activity in the region and reduce the threat of deflation. As a result, within three months the euro exchange rate returned to the positions at the beginning of 2003 against the American currency.

The next stage in the history of the single European currency was a new wave of growth until February 2004. The value of the euro began to rise again in September 2003, but this was not due to the strengthening of the euro, but rather to a serious weakening of the dollar. In confirmation of this, the euro exchange rate began to decline against the British pound sterling. In addition, the difference in interest rates between the Eurozone and Britain is reflected here.
Serious structural problems in the US economy led to the collapse of the American currency, and as a result, on February 18, 2004, the euro reached its highest level of $1.2930 in the entire history of the currency. The growth of the euro against the dollar over the past two years amounted to 4,200 points.

The market already potentially saw the euro/dollar rate at around 1.30 and named the following strategic goals - $1.40-$1.45. However, market expectations were not destined to come true. This development of events was to the advantage of the United States, whose trade deficit was declining due to the weak national currency, but the Eurozone was undoubtedly frightened by this development of events. Representatives of the ECB began to actively make statements about the possible intervention of the Central Bank of the Eurozone if the euro exchange rate reaches $1.30. Active speculation began on the market based on this kind of verbal intervention, which allowed the rate to roll back from historical highs and enter the correction phase. By this time, positive data on the recovery of the American economy arrived. US GDP growth, a reduction in the trade deficit, a recovery in the US stock market and the first signals of a recovery in the labor market supported the US currency against the euro.

Today, the economic situation in the Eurozone leaves much to be desired, however, fears associated with a slowdown in global economic growth may have a negative impact on each of the world currencies.

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Do you know how many countries use the euro? And which EU member states still retain their national currencies?

Only 19 of the 28 EU countries use the euro as their currency Photo: exclusives.webjet.co.nz

In this article PaySpace Magazine editorial staff reminds which EU countries continue to use their national currencies and which have switched to the euro. We are sure that this information will be useful to you, including when planning trips to Europe.

EU member states that have not adopted the euro

Some of the countries of the European Union not only continue to use their national currencies as the main currency, but also do not plan to switch to the euro. When traveling to these countries, it will be useful for a tourist to know what their national currencies look like.

Swedish krona
Croatian kuna
Rumunian leu
Hungarian forint
Czech crown
Polish zloty
Danish krone
Bulgarian lion
Lb

Such countries include, first of all, Great Britain(currency - pound sterling), Denmark(currency is Danish krone) and Sweden(currency: Swedish krona).

When signing the Treaty on European Union, Great Britain and Denmark stipulated in a special protocol their right not to move to the third stage of the EU Economic and Monetary Union, which provides for the introduction of a single currency. Referendums were held in Sweden and Denmark, in which the majority of residents opposed the adoption of the euro. And in 2013, Swedish Finance Minister Anders Borg said that there were no plans to introduce the euro in Sweden.

It is worth noting that Denmark and Sweden have a very high level of non-cash payments. When traveling to these countries, it is better for tourists to take a bank card with them. He can use it to pay almost anywhere. We wrote more about this in materials and.

Since 2002, the exchange rate of the lev, the national currency Bulgaria, pegged to the euro. That is, it was established at a certain level and has been maintained for all these years. Such a peg is needed to stabilize the local currency, increase its reliability and, in some cases, for the country's subsequent transition to the euro.

According to the latest research, 74% of the Bulgarian population is strongly in favor of the Bulgarian lev, and only 9% support the transition to the EU single currency. The country also refused to set a specific date for the transition to the euro. However, the President of Bulgaria recently declared the introduction of the euro a strategic goal.

One of the largest economies in Eastern Europe is Poland. This country also still uses its own currency, called the Polish zloty. Poland's transition to the EU's single currency is being delayed, as more than 70% of the country's residents oppose the idea.

Hungary(the national currency forint) is not yet ready to join the eurozone, according to the European Commission. This, as well as some other European Union member countries, currently does not fully comply with all the prescribed criteria that are necessary for the transition to the euro.

Romania(the national currency is the Romanian leu), which has a very large share of Euro-optimists among the population, was supposed to switch to the euro on January 1, 2019. However, at the end of 2018, the government said that the transition would only be possible in 2024. About plans for the transition to a single European currency and Croatia(official currency is Croatian kuna).

Eurozone countries

Since the introduction of the euro in 1999, this currency has replaced national currency in 19 of the 28 EU countries.

EU countries that use the euro Photo: fd.n

  • Austria- since January 1, 1999, the old currency is the Austrian schilling;
  • Belgium- since January 1, 1999, the old currency is the Belgian franc;
  • Germany- since January 1, 1999, the old currency is the German mark;
  • Greece- since January 1, 2001, the old currency is the Greek drachma;
  • Ireland- since January 1, 1999, the old currency is the Irish pound;
  • Spain- since January 1, 1999, the old currency is the Spanish peseta;
  • Italy- since January 1, 1999, the old currency is the Italian lira;
  • Cyprus- from January 1, 2008, the old currency is the Cypriot pound;
  • Latvia— from January 1, 2014, the old currency is Latvian lats;
  • Lithuania— from January 1, 2015, the old currency is Lithuanian litas;
  • Luxembourg- since January 1, 1999, the old currency is the Luxembourg franc;
  • Malta- from January 1, 2008, the old currency is the Maltese lira;
  • Netherlands- since January 1, 1999, the old currency is the Dutch guilder;
  • Portugal- since January 1, 1999, the old currency is the Portuguese escudo;
  • Slovakia- from January 1, 2009, the old currency is the Slovak koruna;
  • Slovenia- from January 1, 2007, the old currency is the Slovenian tolar;
  • Finland- from January 1, 1999, the old currency is the Finnish mark;

    • European countries that do and do not use the euro. Photo: Wikipedia

    The euro is also the national currency of nine other countries, seven of which are located in Europe. For example, Montenegro, which is not a member of the European Union and does not have its own currency, officially uses the euro. And Norway and Switzerland, which are also not members of the EU, use their own currencies (kroner and franc).

    All countries that are part of the European Union have the right to join the eurozone. The condition for this is the fulfillment of the convergence criteria established by the Treaty of European Union. They are also known as the Maastricht criteria. The EU Council makes a decision on whether the country's macroeconomic indicators meet the convergence criteria, after which this decision is approved by the European Council. For new members of the European Union, joining the euro area is a natural step towards full integration into the EU.

TASS DOSSIER. 15 years ago, on January 1, 2002, the European currency, the euro, was introduced into cash circulation.

The euro is the single European currency. It is official in the countries of the eurozone, which includes 19 of the 28 EU members (Austria, Belgium, Germany, Greece, Ireland, Spain, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, Finland, France , Estonia). By agreement with the European Union, the euro is used in Andorra, Monaco, San Marino and the Vatican, and on a non-contractual basis in Montenegro and Kosovo.

Story

Ideas for creating a single European currency were expressed back in the first half of the 20th century. Thus, in 1929, the German politician Gustav Stresemann spoke about the need for its introduction at a meeting of the League of Nations. Members of the European Economic Community (EEC - a regional integration association in Europe in 1957-1993, predecessor of the EU) have been discussing this possibility since the late 1960s.

In 1979, the European Monetary System (EMS) began operating, within which the European Currency Unit (ECU) was introduced. It was calculated as a basket of currencies of the EMU member countries. Each European currency that was part of the system had a fixed exchange rate to the ECU, on the basis of which fixed exchange rates were formed in relation to each other.

In 1992, the Maastricht Treaty on the European Union was signed, which established the procedure for creating a monetary union and “a stable currency for the 21st century.” The “Maastricht criteria” were established - the requirements necessary for joining the union. Among them are a positive or zero state budget balance (in exceptional cases, a deficit of no more than 3% of GDP), public debt of no more than 60% of GDP, low inflation, and stable exchange rates. After the Maastricht Treaty came into force on November 1, 1993, the EMU effectively ceased to exist.

On December 15, 1995, the European Council approved the name of the new common currency - the euro. When creating the symbol for its designation, the letter “epsilon” of the Greek alphabet, which is crossed by two parallel lines, was taken as a basis. The letter itself is an association with the word "Europe", and the two lines symbolize its stability and reliability. The official presentation of the mark took place on December 12, 1996.

In May 1998, the European Commission named 11 countries whose economic indicators met the “Maastricht criteria.” The list included Austria, Belgium, Germany, Holland, Ireland, Spain, Italy, Luxembourg, Portugal, Finland and France (Great Britain and Denmark also met the stated conditions, but back in 1992 they stipulated in a special protocol their right not to switch to a single currency; the Swedish authorities also decided to preserve the national currency).

These states introduced the euro into non-cash payments on January 1, 1999; at this stage it was in circulation along with national currencies. The cent became the currency of exchange for the euro (1 euro = 100 cents; the name “eurocent” is often used). The first exchange rate between the euro and the US dollar was established on January 4, 1999: then 1 euro was worth 1.1789 dollars. Subsequently, the minimum euro-dollar exchange rate was recorded on October 26, 2000 ($0.8252 per 1 euro), the maximum on July 15, 2008 ($1.599 per 1 euro).

After the introduction of the euro into cash circulation on January 1, 2002, for some time, eurozone member states continued to use national currencies. In a number of countries (for example, Austria, Germany and Ireland) it was announced that the old currency would be accepted indefinitely and exchanged for euros at fixed rates.

Eurozone expansion

The number of eurozone participants gradually expanded. Greece joined it back in 2001, Slovenia - in 2007, Cyprus and Malta - in 2008, Slovakia - in 2009, Estonia - in 2011, Latvia - in 2014, Lithuania - 2015 G.

It is expected that other EU members (Bulgaria, Czech Republic, Hungary, Romania, Croatia, Poland and Sweden) will also join the eurozone. However, according to representatives of the European Union, at present they do not fully comply with the “Maastricht criteria”.

Currency management

Monetary policy in the eurozone is carried out by the European Central Bank (ECB). He coordinates his actions with the national central banks of 19 countries (together they form the Eurosystem).

The remaining states using the euro cannot influence the decisions of the ECB and send their representatives to its governing bodies.

Issue, banknotes and coins

The ECB has the exclusive right to authorize the issue of the euro. Banknotes (in denominations of 5, 10, 20, 50, 100, 200, 500 euros) are printed by the Eurosystem (within the quotas established by the ECB). They share a single design developed by the Austrian Robert Kalina in 1996. They depict schematic examples of European architecture from various styles and periods of history. Depending on the denomination, banknotes have different colors and sizes. In 2013, the first of the updated banknotes with improved security features and Cyrillic inscriptions were put into circulation (in anticipation of the introduction of the euro in Bulgaria). In 2018, the 500 euro banknote will be withdrawn from circulation.

Coins (1,2,5,10,20,50 cents, as well as 1 and 2 euros) are minted in the member states of the eurozone, and also, in accordance with an agreement with the EU, in Andorra, Monaco, San Marino and Vatican City . The coins have a common part of the reverse (back side), the image for which was designed by the Belgian Luc Leix. Their obverse design varies depending on the issuing country. As a rule, it depicts national symbols, historical events, famous people, works of art, etc. Eurozone countries also issue commemorative (usually 2 euro) and bullion coins.

As of November 2016, there are 1.1 trillion euros in cash circulation.

International status of the euro

The euro quickly established itself as the world's second most valuable international currency after the US dollar. Currently, its share in international payments is 29.4%. The euro partially inherited from the German mark, the French franc and other European currencies the status of one of the main reserve currencies: its share in world foreign exchange reserves in 2015 was 19.9%.

The exchange rates of more than 20 countries around the world are pegged to the euro (Bosnia and Herzegovina, Bulgaria; African countries included in the CFA franc zone, etc.). In Russia, the euro is taken into account in the bi-currency basket, which the Central Bank of the Russian Federation uses as a guideline when determining exchange rate policy (from the ratio of 55 US centers to 45 euro cents).