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euro Time Line
The changeover to the euro is the largest monetary
changeover in world history, and it is the culmination of a process
begun decades ago. The introduction of the euro as a circulating currency
is the realization of a Europe in which people, services, capital
and goods can move freely. Such a common European market was envisioned
back
in 1957 with the Treaty of Rome. It declared a common European market
to be a European objective with the aim of increasing economic prosperity
and contributing to a closer union among the peoples of Europe.
1957
Treaty of Rome signed, creating the European Economic Community and
the European Atomic Energy Community and setting a common European
market as an objective.
1979
European Monetary System using a mechanism called the European currency
unit (ECU) goes into operation. The then eight member nations agree
to hold exchange rates within certain limits. The ECU is a unit for
accounting purposes only.
1986
Single European Act signed, revising the goals of the Treaty of Rome
and committing to the creation of a single market by the end of 1992.
1988
The heads of state and government of the European Community ask the
European Commission to develop a schedule for the implementation of
a common currency.
1991
Treaty on European Union agreed to in Maastricht. It enters into force
in November 1993 after ratification by member states. It calls for
economic and monetary union by 1999 as well as political union, including
foreign and security policy. It sets the date for the launch of a
common currency in the European Union, though Great Britain and
Denmark negotiate to keep their national currencies. Sweden would
also later opt out.
1993
European single market is achieved as of January 1.
1995
European Council adopts the name euro for the single currency.
1998
Eleven EU member states qualify to be part of the Economic and Monetary
Union when it begins on
January 1, 1999. (Greece joins as 12th member nation in January 2001.)
European Central Bank is inaugurated in June in Frankfurt, Germany.
It is part of the European
System of Central Banks whose primary duty is to maintain price stability
and conduct monetary policy for the euro area. The European Central
Bank is responsible for managing the development and introduction
of the euro.
January 1, 1999
European Economic and Monetary Union (EMU) goes into operation with
the euro as the currency of the 11 member states of the euro area.
Exchange rates of the participating currencies are set and euro area
members
begin implementing a common monetary policy.
January 1, 1999 - December 31, 2001
·The euro can only be used for non-cash transactions.
· No euro notes or coins in circulation, but price tags, bank
statements and other documents and systems begin noting amounts in
euros.
· Conversion rates for national currencies of
member states and euro are fixed.
September 2001
· Euro notes and coins arrive in banks in the 12 euro zone
countries.
· Banks distribute notes and coins to retailers and other
institutions in preparation for changeover.
December 2001
· Banks in Germany and all other euro countries begin distributing
euro coins to the general public in preparation for the changeover.
· In Germany, people can exchange 20 DM for a "starter kit"
containing €10.23 in coins.
January 1, 2002
· Euro notes and coins enter circulation as legal tender in
the euro zone.
· All bank accounts and corporate books in the euro area will
have been converted to euro.
· All salary and social security transactions and all new contracts
are transacted in euro.
January 1 - February 28, 2002
· Euro as well as old currencies are accepted in most euro-area
countries. Consumers may pay for purchases in the old currencies,
but willreceive change in euros.
· The aim is that most cash transactions will be
made in euro by mid-January 2001.
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