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Euro Background
Where did the idea for the euro originate?
Long before the term euro was coined, the countries of Europe began
moving toward economic integration. The launch of the euro as a currency
beginning in January 1999 was the culmination of a decades-long process.
European currencies were formally linked with the establishment of
the European Monetary System in 1979, limiting fluctuations in exchange
rates. The Single European Act signed in 1986 set in motion the development
of Europe's single market (by the end of 1992), to which a single
currency is the natural complement. The Maastricht Treaty on European
Union signed in February 1992 called for full Economic and Monetary
Union by January 1999. The selection of the name of the new currency
in 1995 was a much-anticipated event across the continent.
What is the euro zone?
The euro zone comprises those European Union member states which have
adopted the euro as the single currency and in which a single monetary
policy is conducted under the responsibility of the decision-making
bodies of the European Central Bank.
Which countries are in the euro zone?
As of January 1, 2001, the euro zone countries are Austria, Belgium,
Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the
Netherlands, Portugal and Spain.
How was the exchange rate determined?
The value of the euro was determined by averaging the conversion rates
of the currencies of the 12 participating countries.
What about EU countries that are not part of the euro zone?
Denmark, Sweden and the United Kingdom have the opportunity to have
their national currencies linked to the euro through an exchange rate
mechanism that will ensure close monetary relations among the member
states and the euro zone.
What does the euro symbol mean?
The euro symbol, €, was inspired by the Greek letter epsilon
and is thereby a reference to Greece as the cradle of European civilization
and to the first letter of the word Europe. The parallel lines represent
the stability of the euro. The official abbreviation of euro is EUR.
The plural of euro is euros.
What do the euro notes and coins look like?
They are quite colorful. The design for the seven banknotes gives
each denomination a dominant color and unique size. Windows, gateways
and bridges depict the
architectural styles of Europe from Classical times to the 20th century.
The small coins - .01, .02, .05 - are copper in color. The .10, .20,
and .50 euro coins are composed of Nordic gold and are gold-toned.
The 1 and 2 euro coins are two-toned, nickel and brass. They feature
images of maps or globes and national symbols.
Where does the name euro come from and why was it chosen?
The heads of state and government of the EU select the name euro at
their meeting in Madrid in December 1995. The term was chosen over
"ecu," which was based on the ECU acronym of the European
currency unit, a mechanism in use since 1979. The word euro clearly
conveys the currency's European identity and can't be confused with
any existing or previous national currency.
What will conversion cost the German government?
Roughly DM 1.9 billion or €0.97 billion.
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