|
|
|
|
The Euro (currency sign: €; banking code: EUR)
is the official currency of the European Union (EU), used in 15 member
states, known collectively as the Eurozone (Austria, Belgium, Cyprus,
Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the
Netherlands, Portugal, Slovenia, Spain). It is also used in 9 other
countries around the world, 7 of those being in Europe. Hence it is the
single currency for over 320 million Europeans. Including areas using
currencies pegged to the Euro, the Euro directly affects close to 500
million people worldwide.With more than €610 billion in circulation as of
December 2006 (equivalent to US$802 billion at the exchange rates at the
time), the Euro is the currency with the highest combined value of cash in
circulation in the world, having surpassed the U.S. dollar.
The Euro was introduced to world financial markets as an accounting currency
in 1999 and launched as physical coins and banknotes on 1 January 2002. It
replaced the former European Currency Unit (ECU) at a ratio of 1:1.
|
 |
|
|
|
|
|
The Euro is managed and administered by the
Frankfurt-based European Central Bank (ECB) and the Eurosystem (composed of
the central banks of the Euro zone countries). As an independent central
bank, the ECB has sole authority to set monetary policy. The Eurosystem
participates in the printing, minting and distribution of notes and coins in
all member states, and the operation of the Eurozone payment systems.
While all European Union (EU) member states are
eligible to join if they comply with certain monetary requirements, not all
EU members have chosen to adopt the currency. All nations that have joined
the EU since the 1993 implementation of the Maastricht Treaty have pledged
to adopt the Euro in due course. Maastricht obliged current members to join
the Euro; however, the United Kingdom and Denmark negotiated exemptions from
that requirement for themselves.[4] Sweden turned down the Euro in a 2003
referendum, and has circumvented the requirement to join the Euro area by
not meeting the membership criteria. In addition, three European microstates
(Vatican City, Monaco, and San Marino), although not EU members, have
adopted the Euro due to currency unions with member states. Andorra,
Montenegro, and Kosovo have adopted the Euro unilaterally, while not being
EU members either.
|
