The single European currency (Euro, EUR)

Euro - is the official currency of 16 European countries united in the Eurozone: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. In addition, unofficially the euro is used by 9 adapted states, 7 of which are European. Therefore, this currency has become the holder of the highest total value of cash in circulation, surpassing even the U.S. dollar by this indicator.

History of appearance

For the first time the euro was introduced as a means of payment on January 1, 1999, at that time it was only non-cash bank transactions. Only three years later, on January 1, 2002, cash bills and coins replaced national banknotes on the territory of 16 countries-allies. The national currencies were exchanged by on a hard courseThe currency of the European Union is the same as the one determined in advance. In addition, all previously used currencies remain in use and can be used by Europeans at any time. Only a few countries have imposed restrictions on the deadline for the use of national banknotes.

Nevertheless, not all EU member states adopted the euro. The exceptions were Sweden and Denmark, where, as a result of a referendum, residents refused to use the euro, as well as England, which wished to use the pound sterling and beyond. In addition, not all countries were immediately able to comply Maastricht criteriaThe euro changeover is a necessary step in the transition to the euro:

—  дефицит государственного бюджета должен быть не более 3% от ВВП,
—  долг правительства не может превышать 60% от ВВП или приближаться к этой отметке,
—  инфляция может быть не более 1,5%,
—  interest rates - not to exceed 2%,
—  государство должно более 2 лет участвовать в Евросоюзе и обеспечивать стабильный обменный курс собственной валюты к евро.

Due to such tough conditions, some countries (e.g., Lithuania and Latvia) postponed the transition to the euro from 2009 to 2014: the crisis situation in Europe did not allow them to get closer to the ideal of a European state. On the contrary, Estonia, the third Baltic state, is getting ready for the transition. On May 12, 2010, the European Commission made an official proposal for Estonia to join the Eurozone on January 1, 2011.

Supervisory authorities

Note that the euro is governed by European Central Bank (ECB)The European Central Banking System (ECBS), which consists of the central banks of the allied countries. ECB Sovereign control of monetary policy in the Eurozone, as well as printing banknotes and minting coins, distributing them across Europe in the required proportions, overseeing the functioning of the Eurozone payment system.
Countries' central banks are also authorized to mint euro coins. Note that this process varies from country to country. So, the euro has one common side, which depicts the face value of the coin on the background of the 16 countries of the Eurozone, and one "national" side, the image of which each central bank chooses its own, based on the preferences of the state.

Euro bills and coins

Total 1 euro consists of 100 cents or euro cents, as they are sometimes called, and coins are issued in denominations of 2 ?, 1 ?, 0.50 ?, 0.20 ?, 0.10 ?, 0.05 ?, 0.02 ? and 0.01 ? Depending on the habits of the population of the country may not issue some coins. For example, in Finland, prices are multiples of 5 cents, so you will not find coins of 1 or 2 cents in circulation, while in other countries, on the contrary, they are very common.

Each country in the euro zone prints its own banknotes and puts his letter in front of the serial numberAustria - N, Belgium - Z, Germany - X, Greece - Y, Ireland - T, Spain - V, Italy - S, Cyprus - G, Luxembourg - R, Malta - F, Netherlands - P, Portugal - M, Slovakia - E, Slovenia - H, Finland - L, France - U.

Graphic sign euro

As for the familiar sign euro (?)The design was developed by a team of four people, whose names have not been officially announced. However, in the course of public opinion polls of 10 applicants for the graphic sign were selected two, of which the European Commission has already chosen the final version. According to the European Commission the basis of the sign was the Greek letter "epsilon" as an indicator of the importance of European civilization, the letter "E" is the first letter of the word "Europe", and the parallel lines mean the stability of the currency.

The effect of the introduction of the euro

About, positive or negative effect was brought by the introduction of the euro, the opinions of experts and Europeans differ. On the one hand, risks associated with exchange rates have decreased, unnecessary costs of currency exchange have been eliminated, financial markets have become more stable, prices do not "jump" and inflation remains at a certain habitual level.
However, there are certain discontent - The unification of states has led to strong competition in which all are equal and there is no protection of states with regard to their own production. For many weaker countries, this has been the cause of plant and factory closures and, consequently, rising unemployment. Also, some Europeans complain about price increases due to the rounding up of prices to an even number of euros.

At Forex currency market The euro is commonly referred to as the EUR. It is one of the most popular and liquid currencies, second only to the U.S. dollar. In tandem, they make up the iconic currency pair EURUSD, which is the main one.

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