On January 2, 2002, the new European
currency, the euro, became official in 12 countries, known as the eurozone. The original currencies were no longer accepted in transactions after Feb. 28, 2002.
The 12 nations that adopted the euro are:
Austria,
Belgium,
Finland, France,
Germany,
Greece, Ireland,
Italy,
Luxembourg, The Netherlands,
Portugal, and
Spain. With a population of slightly more than 300 million people, the eurozone became one huge market.
The euro countries all belong to the political organization, the
European Union (EU).
Denmark,
United Kingdom, and
Sweden have not adopted the euro, although they may do so in the future.
Cyprus,
The Czech Republic,
Estonia,
Hungary,
Latvia,
Lithuania,
Malta,
Poland,
Slovakia, and
Slovenia joined the EU in 2004.
These former
Communist nations with weak economies and high
inflation welcomed EU membership since it brought easy access to western European markets. Joining the eurozone also made it easier for rich countries, such as Germany, to
invest in Eastern Europe.
The Euro Denominations
The euro is available in seven different bills and eight separate coins. The bills are available in 5, 10, 20, 50, 100, 200, and 500 euro denominations.
The coins are available in 1, 2, 5, 10, 20, and 50 euro cents, and 1 and 2 euro denominations. Nations may change the term "cent" if they wish, and call the new coins by the names of earlier currency. It is likely the Germans will call their coins "euro-pfennigs" and the French will refer to theirs as "euro-centimes."
While all the coins will have the same front, each country will putting national symbols on the back of those coins minted in that country. Regardless of what they are called in each nation and what symbols they display, the coins will be interchangeable. Coins minted in different countries may differ minutely in size.
The Euro's Value
The euro fluctuates against the dollar, the Japanese yen, and other major currencies. But it has a fixed value against the currencies it replaced. People turning in German marks, for example, received a fixed number of euros. By keeping the exchange rates stable, currency
speculation, and its potential for destabilizing a nation's economy, was avoided.
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Where the Euro Is Official Currency
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Euro Conversion Rates
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Eurozone Members—Previous Currency
Austria—schilling
Belgium—franc
Finland—markka
France—franc
Germany— mark
Greece—drachma
Ireland—punt (or pound)
Italy—lira
Luxembourg—franc
The Netherlands—guilder
Portugal—escudo
Spain—peseta
Other Sovereign European Nations:
Andorra—Andorran peseta and Andorran franc
Monaco—French franc
San Marino—Italian lira
The Vatican—Italian lira
Sections of Serbia:
Kosovo—German mark
Montenegro—German mark
French Overseas Territories:
French Guiana—French franc
Guadeloupe—French franc
Martinique—French franc
Reunion Island—French franc
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One euro is equal to:
13.7603—Austrian schillings
40.3399—Belgian francs
5.94573—Finnish markkaa
6.55957—French francs
1.95583—German marks
340.750—Greek drachmas
0.787564—Irish pounds
1936.2—Italian lira
40.3399—Luxembourg francs
2.20371—Dutch guilders
166.386—Spanish pesetas
200.482—Portuguese escudos
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Information Please® Database, © 2007 Pearson Education, Inc. All rights reserved.
