Euro

Euro

How was the Euro currency created?

Pierre Werner, the prime minister of Luxembourg, is considered to be the father of the idea of creating the Euro currency. Due to the economic situation in the world, the idea was implemented only 30 years later, in 1999. Earlier, in 1992, the Maastricht Treaty contained information about the desire to introduce a common currency in the EU, but at that time its name was not specified. This one was created only in 1995 during the community summit in Madrid, and from that moment the idea functioned as the Euro, which officially came into force on January 1, 1999. For the first 3 years, the Euro currency was used in a non-cash form to settle transactions. In individual countries, the official means of payment were the existing currencies. They were withdrawn in early 2002 and replaced by the Euro. It was also then that the largest currency exchange in history took place, because it involved 12 countries at the same time.

Where is the Euro currently in use?

Currently, the Euro is the official currency in most countries of the European Union. Namely: Austria, Belgium, Cyprus, Estonia, Finland, France, Greece, Spain, the Netherlands, Ireland, Lithuania, Latvia, Luxembourg, Malta, Germany, Portugal, Slovakia, Slovenia and Italy. As part of the agreement with the European Union, the Euro is also used in Andorra, Monaco, San Marino and the Vatican. Interestingly, two more countries – Montenegro and Kosovo – decided to adopt the Euro as their currency without signing an agreement with the EU. The Euro is also valid in the dependent territories of France, which include: French Guiana, Guadeloupe, Martinique, Mayotte, Réunion, Saint-Barthélemy, Saint-Martin and Saint-Pierre and Miquelon.

The importance of the Euro in the economic world

The introduction of the single currency in the European Union strengthened the economic cooperation of the Member States and strengthened its position in the global economy. The Euro makes the EU an attractive investment area for third countries, which stimulates trade. Appropriately prudent management of the Euro makes it an attractive reserve currency for other countries, and the Euro area itself has a stronger position in the global economy. The scale of the Euro and the careful management of it make it a stable currency that is resilient to external economic shocks, crises and economic changes. Due to its size, the Euro area more effectively absorbs the effects of these negative events.