In which countries is the euro monetary unit. Euro

The history of the euro as the single currency of a united Europe is full of surprises, annoying mistakes and unfulfilled dreams. Today we accept this currency as the world currency, which is the only alternative to the dollar. At the same time, the concept of the euro has not yet exhausted its ambitions.

Euro: a project that can still grow! Characteristics and history of the euro

The bank code of the well-known currency is EUR and it extends to almost all of Europe. Today, in exchange offices around the world, you can buy and sell this currency. About 340 million residents of the "Old World" are included in the money circulation zone. There are more than 1 trillion euros in cash circulation, and this money supply continues to grow. The European currency has surpassed the US dollar in absolute number of notes.

The system for regulating the euro is determined by common institutions for the entire EU. The regulatory bodies include:

European System of Central Banks (ESCB);
European Central Bank (ECB, governing body);
National central banks of the EU countries (Interesting:).

The share of the euro in world turnover is 32% (dollar 42%, the third place is the yuan - 1.47%).

The history of the euro and its name

The history of the euro begins with the creation of a "name". The author of the elegant and capacious name of the new currency was the Belgian, Esperantist Germain Pirlo. The name itself on banknotes is usually indicated in the Latin alphabet ("euro") and the Greek alphabet (Ευρώ). The peculiarity of the phonetics of the name is that it does not have a rigid framework and is determined individually in each language. The only condition is that the pronunciation of the currency name is identical to the pronunciation of the word "Europe" in each language. Thus, the authors emphasized the unity of all countries. The history of the euro currency is based on its name.

Coins and banknotes

Like many monetary units of the world, the euro has banknotes and coins. Standard graduation: 1 euro = 100 cents. All coins are created according to a single template: the front side (obverse) is the denomination against the background of the contour of Europe, the reverse side (reverse) is the national images that determine the country of coinage. A single design has been developed for banknotes, regardless of the country of origin. Banknote denominations: 5, 10, 20, 50, 100, 200, 500 euros. The largest denominations (200 and 500) are not issued in all countries.

All coins are suitable for settlements within the eurozone, regardless of the place of minting. The following denominations are in circulation: 1 euro cent, 2, 5, 10, 20, 50 cents, 1 and 2 euros. Depending on the national traditions of settlements, in some countries, prices for goods are formed in multiples of 5 in order to avoid the circulation of small coins of 1 and 2 euro cents.

The € symbol: history of the euro currency sign

The symbol of the single European currency, which has become recognizable and famous, should be printed in yellow on blue, according to accepted standards. The combination of colors is at the heart of the design of the symbol, along with geometric shapes and lines. The choice of the symbol took place in several stages. First, the commission selected 10 options from a huge number of proposed ones. Then, by voting among the residents of the EU, three options were selected. The winner was determined by the European Commission.

According to the official data, the winning project was developed by a team of 4 experts. The names of the authors were not disclosed, which prompted disputes over authorship. For example, Arthur Eisenmanger (formerly the lead designer of the EEC) claims to be the creator of the symbol that was originally used as a common sign for Europe. The history of the emergence of the euro has many hidden pages.

From what year did the euro begin to function?

Euros have been around for a relatively long time, but it feels like much longer. For non-cash transactions, the currency has been used since January 1, 1999. Exactly 3 years later, she began to "walk" in cash circulation. The first 2 months of the currency's existence (until February 28, 2002), new signs circulated in the eurozone countries in parallel with the national currency.

In what year and when did the euro appear as the single and only currency?

Since January 1, 2002, the currency has become a single, and since March 1, 2002, the only one in the eurozone.

In which countries the official currency is the euro?

For 2018, the euro circulates throughout the EU, but the official currency is recognized only in 19 countries: Austria, Belgium, Germany, Greece, Ireland, Spain, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovenia, Slovakia , Finland, France, Estonia. And 9 more countries (7 of which are located in Europe) have the official currency of the euro, but they cannot influence the banking aspects of circulation.

Euro sign location and separator type in different languages. Individual features of the one euro coin

Freedom of currency is expressed in many aspects. The location of the currency symbol may vary from country to country. Each state reserves the right to write the amount and the choice of the dividing mark. In the overwhelming majority of cases, countries retained the spelling format that their national currency had - this makes it easier to get used to new money.

According to ISO standards, the currency symbol must be written after the numbers, but about half of the countries left it in front of the amount. The basis of monetary circulation is a 1 euro coin. The obverse of a coin can be different and is determined by the place of minting. The reverse is decorated with a general map of Europe. The coin is made of 2 metals (bimetallic) - 75% copper and 25% nickel. Now there are about 7 billion of these coins in circulation.

History of the origin and introduction of the euro

The parallel circulation of national currencies and the newly introduced euro greatly simplified the introduction of the euro into circulation. We managed to make a large-scale introduction of new banknotes in several countries, which in itself is a significant achievement. Those countries that became part of the eurozone after 2002 received 2 weeks of parallel circulation.

The history of the emergence of the euro, as well as the history of its introduction, is a financial symbiosis of many economies. This led to the close unity of the banking systems of many countries. We can say for sure that this has never happened in history. The history of the emergence of the euro in each country was strictly regulated by the relevant legislative acts and represented a harmonious process. A large number of specialists worked on the history of the creation of the euro in each individual state.

Effects of the creation of the euro and the history of currency adoption

The introduction of the new single currency has led to many effects, both planned and quite unexpected.

Eliminating exchange rate risks

The euro made it possible to create a single financial field where each member country could freely exchange funds, avoiding risks arising from the difference in currency rates between countries. Working with the money of another country, import / export, investing abroad - these types of activities have great potential, but they had many difficulties when each EU country had its own money. The introduction of the euro removed these problems.

Eliminate conversion costs

One currency for all countries eliminated the cost of conversion services. When transferring one currency to another, the bank necessarily charges a certain percentage for the operation (see). If payments are made between large companies and states, then the amount is more than significant. The introduction of the euro removed such problems.

More resilient financial markets

The history of the origin of the euro is the history of the formation of stability in a single economic space. The euro has had a significant impact on the formation of sustainable market relations.

Price parity

Thanks to the introduction of the euro currency, it was possible to align the price frames throughout Europe. The fact is that earlier on the market it was possible to find large-scale currency transactions based on the difference in exchange rates between countries. That is, the deal was concluded only in order to make a profit due to the difference in rates.

Competitive refinancing

The euro also made a splash on the securities market. Companies could now easily raise shares overseas without fear of losing profits.

Euro as anchor currency

Representatives of the region began to tie their national monetary units to the euro. This greatly accelerated and simplified the subsequent introduction of the currency in new countries.

History of the origin of the euro as a reserve currency

Criticism of the currency. The highest euro exchange rate in history

Since the inception of the currency (and even the idea of the currency itself), disputes about the expediency of its appearance and the large number of threats have not subsided. Here are some of those voiced by the experts:

The ECB risks losing its independence under pressure from different countries of the union.
Different levels of inflation in the countries of the region limit the development and implementation of a unified monetary policy.
Reducing the role of governments and their impact on the economy.

The history of the creation of the euro and its rapid introduction into the economies of all EU countries led to a rapid increase in its quotations. 5 years after its appearance, in 2004, the currency reached the maximum rate of the euro in its entire history - 1.2930 dollars. Since then, the currency has risen quite high several times, but the highest euro exchange rate in history remains unattainable.

In the history of the origin of the euro, there are many interesting and relevant for today's economy. There is a lot to learn from the world's financiers.

And instead of a conclusion, we will tell you a few interesting facts about the euro.

The introduction of the euro led to the massive purchase of wallets in Italy. The size of the banknotes of the new currency turned out to be much wider than the lira. And within a few months, there was a boom in the purchase of wallets on the Apennine Peninsula. Someone was able to make cool money on this.
When developing the design of the currency, special attention was paid to the relief and structure of the material. The convex image on the banknote is focused on the ease of use by people with poor eyesight.
The predecessor of the euro was the ECU. The single currency of the EU countries existed from 1979 to 1998.

In 1962 In the memorandum of the European Community, for the first time, it was said about the need for a common financial policy in Europe. The idea of a "currency snake" is put forward, that is, fixing the exchange rates of the currencies of the EU countries in a certain range. The plan was thwarted by the 1972 energy crisis caused by a sharp rise in oil prices.

In 1979 the idea of a "currency snake" was implemented by the European Monetary System. EU central banks have signed an agreement to limit fluctuations in exchange rates. Introduced a prototype of the euro, the single settlement currency ECU.

Subsequently, these ideas were developed in the Single European Act of 1986 and the Maastricht Treaty (Treaty on European Union) of 1992, which formally laid the foundations of the Economic and Monetary Union (EMU) and the single European currency.

The most important of the provisions of the Maastricht Treaty concerned economic and financial policy, the ultimate goal of which was the introduction of a single currency in the EU countries. The agreement provided for a timetable for the introduction of a single currency and general rules on the state budget, inflation and interest rates for all members of the future monetary union.

Stability criteria

In order for the euro to be put into circulation, all member states of the monetary union must meet the strict stability criteria enshrined in the Maastricht Agreements: the inflation rate in a country wishing to join a monetary economic union can exceed the indicators of the three most stable EU states by no more than by 1.5%; government debt can be no more than 60% of gross domestic product (GDP); the state budget deficit cannot exceed 3% of GDP; interest rates on bank loans can be only 2% higher than those of the three most stable countries; candidates for membership in the union are not entitled to devalue national currency units on their own initiative for two years.

In 1994, the European Monetary Institute was established in Frankfurt am Main, whose tasks were to manage the project for the creation of a single currency and monitor economic processes in the EU member states.

The official scenario of the transition to a single currency was adopted at the Madrid summit on December 15-16, 1995, and the name of the new currency "euro" was also established.

In 1997-1998, a competition was held in several rounds for the best design of cash euros, the winner of which was Robert Kalina, chief designer of the Central Bank of Austria. In February 1998, the design and specifications of the banknotes were approved by the Council of the European Monetary Union. In August 1998, the main tests were carried out on the printing of all denominations of banknotes to finally solve the problems of issue.

The banknotes are designed with images of outstanding monuments in Europe. The windows and doors on the front side symbolize the spirit of openness and cooperation within the European Community. The reverse side of each of the banknotes depicts a bridge as a metaphor for communication between people in the EU and beyond. All banknotes are specially protected against counterfeiting.

The tender for the supply of metal for minting euro coins was won by China Luoyang Copper Plant in the central province of Henan.

According to the criteria for joining the new currency on May 2, 1998, Austria, Belgium, Germany, Ireland, Spain, Italy, Luxembourg, Netherlands, Portugal, Finland and France were admitted by the EU Council to participate in the "euro zone". Two countries - Great Britain and Sweden - also met most of these criteria, but refused to enter the "euro zone" as its first participants. Denmark faced constitutional problems, while Greece's financial performance did not meet the necessary requirements.

On June 1, 1998, the European Central Bank (ECB) was established. Its headquarters are located in Frankfurt am Main, Germany. The bank's tasks are to maintain price stability and conduct a unified monetary policy throughout the eurozone.

Going to the people

The introduction of the euro took place gradually: first, into non-cash circulation, then cash bills were issued.

January 1, 1999 at 00.00 hours European time, the countries of the European Economic and Monetary Union (EMU) introduced a single currency, the euro (EUR), and began to use it for non-cash payments. From that moment on, the rates of the national currencies of the participating countries were rigidly fixed in relation to the euro, and the euro became an independent full-fledged monetary unit. At this stage, both the euro and the national currencies functioned in parallel and on an equal footing. Trading in the euro began on January 4, 1999.

January 1, 2001 Greece joined the euro area and became the 12th country to adopt the single European currency on its territory.

Since January 1, 2002 within a period that each country determined independently (but not more than six months), euro banknotes and coins were introduced into circulation, replacing the previous banknotes and coins in national monetary units. For six months, old national banknotes and coins could still circulate on a par with the euro. However, after June 1, 2002, the euro becomes the only legal tender in the Eurozone countries.

Slovenia became eligible in 2006 and joined the eurozone on January 1, 2007. Cyprus and Malta passed the approval procedure in 2007 and joined the eurozone on January 1, 2008. Slovakia is expected to become the next country to join the eurozone in 2009.

In addition, the euro is also put into circulation: in the dwarf states of Europe, which are not formally part of the European Union (Vatican, San Marino, Andorra and Monaco); in the overseas departments of France (Guadeloupe, Martinique, French Guiana, Reunion); on the islands that make up Portugal (Madeira and the Azores); in the Serbian province of Kosovo, controlled by an international peacekeeping force; in Montenegro (formerly a German mark).

Euro symbol

Euro (€, bank code: EUR). The Greek letter "upsilon" served as the basis for the graphic symbol of the euro, which traces the connection with the first letter of the word "Europe". Parallel lines symbolize the stability of the euro. The official abbreviation for the euro EUR is registered with the International Organization for Standards, ISO, and is used for business, financial and commercial purposes.

Euro - banknotes and coins

The euro is sibdivided into 100 cents (euro cents). All euro coins, including the 2 euro commemorative coins, have one side in common, on which the denomination of the coin is indicated against the background of the image of European countries, and the second "national" side with the image chosen by the country in which the coin is minted. All coins, however, can be used in all member countries of the Eurozone.

Euro coins are issued in denominations of 2 and 1 euro, 50, 20, 10, 5, 2 and 1 euro cent. The last two coins are not minted in Finland and the Netherlands (but they are legal tender there too). Many shops in the Eurozone prefer to equalize prices so that they are multiples of 5 cents and coins of 1 and 2 euro cents are not needed. The reverse side may differ depending on the country in which this or that coin is issued, and represents the national symbols of the country.

All euro banknotes have a common design for each denomination on both sides. Banknotes are issued in denominations of 500, 200, 100, 50, 20, 10 and 5 euros. Some senior banknotes, such as 500 and 200 euros, are not issued in some countries, but are legal tender everywhere.

According to media reports, in 2010 there will be new euro banknotes with an increased degree of protection. The appearance of the banknotes will also change. However, it was decided that the drawing on them will generally correspond to the current one - images of bridges, windows, the EU flag and a map of Europe. There are also changes to be made in the inscriptions on the banknotes - in connection with the entry into the EU of new states and their entry into the euro zone in the coming years.

In total, during the replacement, the currently in circulation 11.2 billion euro notes with a total face value of 637 billion will be withdrawn. It is expected that the operation will take place in several stages.

The idea of the euro is not so new and young. Attempts to unite (or unify) monetary systems have arisen more than once. Almost simultaneously with the appearance of coins. As you know, the first coins appeared in Lydia (a state located in Asia Minor) in the 7th century BC. Some ancient Greek city-states began to conclude alliances with each other, agreeing on the free circulation of coins issued by each of them on the subject territory.

The most famous attempt to create a common monetary system was undertaken in the Middle Ages as part of the Hanseatic League - a political and commercial association of the Baltic cities in the 13th-16th centuries. At different times, it included from 70 to 170 subjects. Trade was carried out between numerous cities, principalities, and the smallest of them had their own money.

In 1379, a monetary union was concluded, within the framework of which coins of a single sample (zexlings, drailings and others) were minted, which were accepted in the main Hanseatic cities of Lubeck, Hamburg, Rostock, Cologne, throughout Scandinavia, as well as in Novgorod and Pskov. The members of the union controlled the volume and procedure for the circulation of money in the territory of the Hansa. This monetary system existed for several decades and collapsed, like the Hanseatic Association itself.

Later, in Europe, attempts to unify monetary systems continued. In the first half of the 19th century, several projects were implemented to integrate coinage systems. True, all of them were carried out within the framework of newly created or already existing countries. In particular, before the creation of unified states, there were 11 different monetary systems in Switzerland, several dozen different types of coins circulated in Italy, and there were 39 independent entities on the territory of the future German Empire, each of which minted its own coins.

In the second half of the 19th century, two monetary unions appeared in Europe - Latin and Scandinavian, within which money circulation began to be carried out on a fundamentally new basis.

The prototype of the euro system can be considered the Latin Monetary Union. It was created at the end of December 1865 by France, Italy, Belgium and Switzerland. The monetary systems of these countries after the Napoleonic wars were virtually identical. Since 1868, Greece also joined the Latin Union.

According to the original agreement, the Union was concluded for 15 years, until January 1, 1880. And if, a year before the end of this period, no country declares its withdrawal from the Union and the need to liquidate it, then the treaty was considered extended for a new period. The 1865 convention actually unified the coins circulating in the countries.

The same weight, fineness, material and denomination of coins were established for the entire Union. The French metric monetary system was used as a model.

However, in each country, the national names of the main monetary unit were preserved (in France, Switzerland and Belgium - the franc, in Italy - the lira, in Greece - the drachma). Each state could issue silver 5-franc and gold coins without restrictions, observing only a single ratio of gold and silver (1: 15.5). But the minting of a small change was limited to 6 francs per capita.

It was also established that all full-fledged (gold and 5-franc silver) coins issued by any of the member countries of the Union were accepted (without limiting the amount), and a bargaining chip was accepted for an amount of no more than 100 francs (coins were accepted from their citizens without limiting the amount) ... In fact, unlike the previous period, when in many European countries the gold standard was the basis of the financial system, bimetallism was taken as the basis of the Latin Monetary Union.

The reason for the establishment of bimetallism was simple: more and more gold deposits were discovered, and its price relative to silver began to fall. Supporters of bimetallism believed that such a monetary system would help keep both metals in circulation.

The fluctuations in the value of precious metals also interfered. Until 1867, silver was more expensive than the ratio established by the Union, and was gradually replaced from circulation by gold. However, since the 1870s, the market price of silver began to fall catastrophically. Then gold coins began to quickly disappear from circulation. In these conditions, it became unprofitable for the states of the Union to allow the gradually depreciating silver coin from other countries into their territory. Therefore, from 1878, free minting of silver was discontinued, although 5-franc silver coins remained in circulation.

Thus, the Latin Monetary Union moved from bimetallism to the so-called "lame" currency. It remained to decide the question of the responsibility of each of the states of the Union for the 5-franc coin issued by it.

The fact is that, pursuing different monetary policies, countries put into circulation a different number of coins, primarily silver ones. And although the members of the Union communicated information to each other about the scale of the issue, the trade turnover between them was different, as a result of which an unequal amount of "foreign" coins circulated in the states.

The Latin Union was not only of economic importance. France, as the leader and strongest power of the unification, launched a wide campaign in Europe to introduce its monetary system in other states, thus wishing to expand the franc zone. By the end of the 19th century, in addition to the members of the Union, another 18 countries had monetary units equivalent to the franc.

These countries included Finland, which was part of the Russian Empire, but had an autonomous financial system. Russia itself, since 1885, had some types of coins that corresponded to the Latin ones: gold 5 and 10 rubles (semi-imperial and imperial) corresponded to 20 and 40 francs, silver half and quarter (50 and 25 kopecks) were equal to 2 and 1 francs. Obviously, this was due to the political alliance formed then between France and Russia. However, the Latin Union could no longer accept new members, as it began to collapse from within. The fact is that the union agreements did not concern paper circulation, and while France was busy with unification projects, Italy printed banknotes uncontrollably, replenishing its treasury at the expense of partners. The members of the Latin Union did not consider it necessary to coordinate their interest rates and budgetary policy, and when the First World War began, the currencies of the member countries of the Union began to lose their purchasing power at different rates. This was the beginning of the end of the Latin Monetary Union.

With the outbreak of war, all countries of the Latin Monetary Union, except Switzerland, removed gold and silver from circulation and switched to paper money. In Switzerland, silver coins of other states of the Latin Union accumulated in abundance, since the currencies of France, Belgium and Italy depreciated, and it was profitable to exchange them for the Swiss franc, the rate of which was very high.

Such a flood of devalued silver posed a serious danger to the country, and in October 1920, the further import and circulation of coins minted by Union partners was declared illegal in Switzerland.

Switzerland became the owner of 225 million francs in foreign currency in addition to the silver it had in its national bank. In 1921, at a conference of the member states of the Latin Union, Switzerland received the right to mint half of foreign silver coins into the national currency. To fill the void in monetary circulation in Switzerland, which was formed as a result of the seizure of foreign coins, she was allowed to increase the minting of silver 5-franc coins several times.

In fact, this decision was the beginning of the liquidation of the Latin Monetary Union. And only because of the complexity of the final calculations, this process lasted for five years. The Union officially ceased to exist on December 31, 1926. The Scandinavian Monetary Union was concluded on May 27, 1873 between Sweden and Denmark. Norway joined the agreement a year and a half later. Thanks to the simultaneous introduction of the gold standard in the Scandinavian countries, the Union created a single monetary system in them. In all three countries, 248 coins were minted from 1 kg of pure gold, and 1/10 of the coin was declared a counting unit and called the crown.

The creation of a common monetary system and unit of account for the Scandinavian countries, however, did not exclude the possibility of fluctuations in exchange rates between these countries when their balances of payments changed. In 1885, to eliminate these fluctuations, the central issuing banks of the three Scandinavian countries entered into an agreement among themselves, according to which payment orders between them were paid at a parity rate without charging any fees.

In fact, since that time the first international clearing system has emerged. In order to restrict the movement of gold between the emission banks of the Scandinavian countries in 1894 and 1901, agreements on mutual exchange at parity of banknotes were concluded.

The abolition of the gold standard was facilitated by the First World War. The connection between the currencies of the Scandinavian countries was broken, and the Scandinavian Monetary Union ceased to exist. The attempts that were made by Europe to create a single monetary system were not in vain. Some elements of the unified financial systems of the Latin and Scandinavian monetary unions, above all the actual unification of banknotes, turned out to be viable and expedient and were successfully used to create the euro without any major changes.

The emergence of the euro dollar or euro (the single European currency), which is currently in circulation in 16 European countries, is obliged to the creation of the European Union in 1992. This was a new stage in the development of European integration. The introduction of the euro took place gradually: first, into non-cash circulation, then cash bills were issued. On January 1, 1999, at 0.00 hours European time, the countries of the European Economic and Monetary Union (EMU) introduced a single currency - the euro (EUR). From that moment on, the rates of the national currencies of the participating countries were rigidly fixed in relation to the euro, and the euro became an independent full-fledged monetary unit. At this stage, both the euro and the national currencies functioned in parallel and on an equal footing. Trading in the euro began on January 4, 1999. The following conversion rates are installed:

Deutsche mark 1.95583
French franc 6.55957
Italian lira 1936.21
Spanish peseta 166.386
Portuguese escudo 200.482
Finnish mark 5.94573
Irish Pound 0.787564
Belgian / Luxembourgish franc 40.3399
Dutch guilder 2.20371
Austrian schilling 13.7603

From 01.01.2002, during the period that each country determined independently (but not more than 6 months), euro banknotes and coins were introduced into circulation, replacing the previous banknotes and coins in national monetary units. For six months, old national banknotes and coins could still circulate on a par with the euro. However, after 06/01/2002, the euro becomes the only legal tender in the Eurozone countries.

Fixing the exchange rates of national currencies against the euro made it possible for investors not to take into account currency risks when assessing the effectiveness of projects. The emergence of the euro also made it possible to significantly save on the costs of circulation of national currencies, including the costs associated with accounting for transactions with the currencies of the EU countries, insurance of currency risks, exchange operations, drawing up price lists in various currencies, etc.

Considering that the German mark is the most stable monetary unit among European currencies, it is quite logical to assume that in countries with less stable currencies, the effect of the introduction of the EURO will be even more significant.

On January 1, 1999, with the introduction of the new single currency, the euro, its rate against the dollar was set at 1 EUR = 1.1736 USD or 1 USD = 1.6665 DEM. It is now recognized that the dollar rate was then, as if mistakenly undervalued, and the euro was unreasonably overvalued. Indeed, very soon the dollar began to rise in price continuously, and the euro began to depreciate. In March 1999, geopolitical tensions over the hostilities in Yugoslavia and the danger of destabilizing the economic situation in Europe accelerated the depreciation of the euro. The result was the resignation of German Finance Minister Oscar Lafontaine, who was accused of planning deficiencies. But even the ECB rate cut that happened almost immediately after the resignation of the finance minister, which, in theory, was supposed to stimulate economic growth, could no longer change the situation - the EURO continued to fall. At the end of November 1999, the parity of the euro and the dollar was reached. Further, the European currency continued to fall against the American against the background of a slowdown in economic growth in the Eurozone countries.

Throughout 2000, the euro / dollar rate fell even more significantly, which provoked the largest central banks of the world to move to active actions in the foreign exchange market. At the end of September 2000, the ECB, the US Treasury, the Bank of Japan, the Bank of England and a number of European banks intervened in support of the single European currency. According to economists, further depreciation of the euro could hurt the global economy. The actions of the banks were practically unsuccessful, since by October 2000 the euro reached its historic low at around $ 0.8230 per euro. In addition, the head of the European Central Bank acknowledged that further interventions to maintain the euro rate would be counterproductive against the background of the Middle East crisis, which undermined the stability of foreign exchange markets around the world.

Further, when at the end of 2000 it became finally clear that the United States could not avoid a new recession, the Fed decided to ease monetary policy. During 2001, in order to bring the country's economy out of the crisis and stimulate economic growth, the US interest rate was cut three times and eventually dropped below 2% at the end of the year. As a result, due to the lower level of the US rate in relation to the ECB rate, the US currency began to lose its positions against the euro. In addition, on September 11, 2001, the American economy experienced a shock caused by terrorist attacks, which also did not give optimism to the dollar. After reaching a historic low against the dollar, the European currency made repeated attempts to recover throughout 2001, but failed to rise above $ 0.96.

In January 2002, the euro was introduced into cash circulation. We can say that from that moment the gradual growth of the European currency began. At the end of March 2002, the speech of the head of the FRS Alan Greenspan about the fact that the recovery of the American economy is in doubt added to the negative for potential investors, and since April 2002 the euro has never dropped below $ 0.87.

In July 2002, the single European currency again reached parity with the dollar. Analysts began to talk about the collapse of the dollar as the most stable and strongest currency in the world and predicted a further fall of the American currency in world currency markets. After this important event on the world currency market, the euro rolled back a little due to the fact that the representatives of the European Commission recognized the emerging problems with the budget deficit in the largest economies of the Eurozone. However, on December 6, 2002, the currencies leveled out relative to each other, and from that moment until today, the single European currency has become more expensive than the American one. The reason for the dollar's fall was the American economy, which again disappointed economists, showing not the growth that everyone expected from it.

The US military action in Iraq and the fears of investors expecting the negative consequences of the war on the American economy did their job. From the beginning of 2003 to the end of May of the same year, the euro against the dollar rose by 13% and approached the level of 1.1736, at which the single European currency began its official market life on January 4, 1999.

Finally, on Friday, May 23rd, 2003, at the end of the business day in Tokyo and Hong Kong and at the beginning of the business day in Europe, the euro broke above the "birthday" level, after which numerous stops to sell the American currency were triggered. The ECB leadership showed no concern about the growth of the euro, despite the data on the decline in profits of European exporters and zero GDP growth in the Eurozone in the first quarter of 2003 compared to the fourth quarter of 2002. According to representatives of the ECB, the strengthening of the euro reflects fundamental economic conditions.

However, after reaching the maximum, the optimism of currency speculators began to decline. The state of the Eurozone economy began to deteriorate actively under the pressure of the appreciated national currency. Expectations of a significant cut in the ECB's interest rate have intensified on the European financial markets. At a meeting of the ECB on June 5, 2003, it was decided to reduce the key interest rate by 50 points to the level of 2% to stimulate business activity in the region and reduce the threat of deflation. As a result, within three months the euro rate returned to the positions of the beginning of 2003 against the American currency. The next stage in the history of the single European currency was a new wave of growth until February 2004. The value of the euro began to rise again in September 2003, but this was not due to the strengthening of the euro, but rather a serious weakening of the dollar. In confirmation of this, the euro began to decline against the British pound sterling. In addition, the difference between the interest rates of the Eurozone and Britain is reflected here.

The most serious structural problems in the US economy led to the collapse of the American currency, and as a result, on February 18, 2004, the euro reached its maximum level of $ 1.2930 in the entire history of the currency. The growth of the euro against the dollar over the past two years amounted to 4200 points.

The market has already potentially seen the euro / dollar rate at around 1.30 and named the following strategic goals - $ 1.40- $ 1.45. However, the market's expectations were not destined to come true at that time. This development of events played into the hands of the United States, whose trade deficit was decreasing thanks to a weak national currency, but the Eurozone was undoubtedly frightened by such a development of events. Representatives of the ECB began to actively make statements about the possible intervention of the Central Bank of the Eurozone if the euro reaches $ 1.30. The market began to actively speculate on this kind of verbal interventions, which allowed the rate to roll back from historical highs and enter the phase of correction. And by this time, positive data on the recovery of the American economy arrived. US GDP growth, a reduction in the trade deficit, a recovery in the US stock market and the first signals of a recovery in the labor market supported the US currency against the euro.

Since the end of 2005, the euro began to rise again against the dollar and the growth period was the longest - about 2.5 years. As a result, in April 2008, the euro was given $ 1.60. However, then, against the backdrop of the global economic crisis, the dollar rose sharply to $ 1.24. In the first half of 2009, the dollar rate against the euro fluctuated in the range of $ 1.25- $ 1.35 per euro, and in the second half of 2009 it began to grow again, reaching $ 1.45.

There is no such person who does not know about the existence of the euro. This relatively young currency is the second most widespread in the world. It is only slightly inferior to the dollar in the share of interbank turnover: 32% of the euro against 42% of the American “green”. By the way, the share of the Russian ruble in international turnover is less than a percent.

The euro was introduced into circulation less than twenty years ago - on January 1, 1999. Almost four hundred million Europeans use the euro as their common and official currency. Of course, this is not quite the first attempt by the European Union to introduce a common international currency for all countries in the turnover zone. The predecessor and prototype of the euro is the ECU - European currency unit, introduced in 1979. In the usual sense, it is difficult to call ECU money: we are accustomed to the fact that money is something tangible, tangible, that is, banknotes and bills. But the ECU was intended exclusively for cashless payments. Moreover, it is more appropriate to call it a generalized analogue of the monetary funds of other countries that were then included in the EU currency basket.

Does this mean the ECU was a "fake" currency? Of course not. In modern terms, the ECU was something like a cryptocurrency, since it was an alternative, digital currency. At the same time, they used it on a par with ordinary paper money both as a reserve asset and as an object of any financial activity in the banks of the countries of the European Economic Community. Its era ended at the end of the twentieth century: on the first day of 1999, the ECU was replaced at a one-to-one rate by new monetary unit, more familiar and physically tangible - the euro.

What year was the euro introduced: history

First euro(as the name of the future single currency) sounded in 1995. Of course, this was not some kind of revelation. The talk that the countries of the European Economic Community need a common financial system has been going on since the early sixties of the twentieth century. It took almost forty years before the world market saw the familiar multi-colored bills. I have already mentioned the date of January 1, 1999 several times, but this day is the day the euro was entered into non-cash settlement. But colored banknotes came into circulation only three years later, on January 1, 2002.

When the euro appeared on the market, the national monetary units of almost twenty countries sank into oblivion: the Italian lira, French and Belgian francs, German marks and many others ceased to exist at one point. Now these banknotes and coins are the subject of the hunt of numismatists. For the financial world, they have lost their weight. Soon the list of “outdated” currency units due to the euro will be replenished with Romanian lei, Croatian kunas and Polish zlotys.

Another important milestone in the history of the euro currency is February 7, 1992. On this very day, in the Dutch town of Maastricht, the heads of the countries of the European Communities signed an agreement on the creation of a common monetary and political system. The Treaty on the European Union regulated many issues regarding the future political unification, including the criteria by which countries can become part of the eurozone and join the circulation of the single currency.

To this day, the financial and economic indicators of countries and territories wishing to enter the eurozone are strictly checked for compliance with these points. But we will talk about them a little later, when we figure out why Bulgaria and Sweden have not yet introduced the euro into circulation.

Although euro banknotes and coins are issued in different countries of the euro area, this entire process is regulated by the ECB headquarters located in Frankfurt am Main, Germany.

What does the euro currency look like: the distinctiveness of a striking design

Almost fifty designers took part in the competition for the design of the future common European currency. The competition was fierce: who doesn't want his work to be immortalized in the form of one of the world's most widespread currencies? The victory went to the Austrian designer and artist Robert Kalina.

Interesting fact! Austrians are so proud that it was their compatriot who developed the design of euro banknotes and euro cents that today many people colloquially call the euro "viburnum". If you are in Austria - check it out!

It is worth noting that Robert Kalina developed the design of the reverse of the euro-cents coins, but their obverse is different (depending on which country the coin was issued in). The only thing they have in common is the presence of twelve stars of the European Union, which symbolizes the countries that initially united under its auspices. Each coin has a national identifier, which is also distinguished by its identity. For example, iron euros in Ireland are issued with the mark Éire , the Irish self-name of the nation, written in Gaelic script.

In the designer's homeland, Austria, the one and two euro coins on the obverse bear the image of Mozart and Bertha von Suttner, the first woman to receive the Nobel Peace Prize. In Italy, the obverse is decorated with an engraving of Da Vinci's "Vitruvian Man", and in France, a stylized tree, whose crown rises upward along with the country's motto "Freedom, Equality, Brotherhood". Basically, of course, countries place on the obverse of coins of famous compatriots or their rulers, such as Queen (since 2013 - princess) of the Netherlands, Beatrix.

With paper banknotes, the situation is different, that is, more conservative. Their colors and style have not changed since 2002. There were minor changes, but the image of paper euros has remained recognizable for almost twenty years. Each bill has its own size and color, and the common stylistic theme is the heritage of European architecture from antiquity to the present day. For example, the buildings of ancient architecture are schematically depicted on gray five-euro banknotes. 10 euros is Gothic, 50 is Renaissance, and the purple 500 bills show the futurism and clarity of modern architecture.

In 2013, the ECB launched a new series under the very obvious and unoriginal name "Europe". This series did not bring particularly significant changes. The color scheme and distribution of the architectural periods remained the same. Unless the banknotes became brighter, a holographic security tape appeared, as well as a watermark depicting Europe itself. But not the one that is part of the world, but the one that was the mythological daughter of the Phoenician king. It was in front of her that Zeus himself could not resist.

The Euro currency sign is a separate conversation. Its authorship is officially considered anonymous, therefore it is not disclosed, but some designers claim that it was they who created the famous crossed out "E-shka". Among them is Arthur Eisenmenger, who once served as the chief graphic designer of the EEC. But you and I don't care much about who the real author was. The deep symbolism of this sign remains interesting. Elements mean the following:

parallel lines crossing the axis - a symbol of currency stability;
the letter "E" is a symbol of the European Union and Europe as a part of the world;
Greek epsilon is a tribute to the cradle of European and world civilization.

I have already mentioned Bulgaria. Officially, this country is not yet a member of the eurozone, but very much aspires there. They also use the Cyrillic script in their language. Initially, representatives of the ECB did not want the banknotes to have a Cyrillic spelling of the name of the currency. It's enough that in the old series of banknotes it is written in Latin and Greek transcripts. But the Bulgarians prevailed: the banknotes of the new series also have the familiar Cyrillic spelling.

Euro is a comfortable currency. We developed it with the idea that people with disabilities would also use bills for calculations. Due to this, banknotes are of different sizes, so they alternate between warm and cold colors. The denomination itself is embossed. Even people with complete loss of sight can “grope” it.

The idea of multi-colored bills, of course, is not new, while the emergence of the euro currency was not some kind of revelation. Now you can see that many other countries are guided by the euro, developing the style of new banknotes. Only the lazy did not speak about the similarity of the banknote of two thousand Russian rubles with the "Euro-20". With the naked eye, it is noticeable what the designers of modern Ukrainian hryvnia were inspired by.

In which countries is the euro an official currency?

Initially, the countries that signed the Maastricht Treaty were the first to enter the eurozone (except for Great Britain and Denmark). First, the British postponed entry into the eurozone for five years in order to prepare a favorable soil for the national economy, then for several more years. In connection with Brexit and the growth of Euroscepticism among the British authorities, now it cannot be said at all that the euro will ever be able to replace the pound sterling.

In Denmark, everything is simpler: back in 1992, they announced that they were not going to change their kroon for a new currency, as well as to enter the eurozone, but they were participating in the exchange rate mechanism. Although there were, of course, attempts: in 2000, the government even held a referendum, but the majority of the country's residents spoke out against changing the monetary unit. The referendum was spoken about many times, but the crisis of 2008 further undermined the Danes' faith in the single European currency, so now they continue to use the kroons.

The countries with the euro currency are the Eurozone. Lithuania was the last to join it. Thus, the union unites 19 countries that use the euro as a single national settlement system. But there are other countries in which the euro is used officially, that is, at the level of the national currency. They are not part of the EU, which does not prevent them from using colored bills. These countries include the Vatican, Monaco, Andorra, Montenegro, San Marino, as well as territories such as Kosovo, Akrotiri, Dhekelia, San Martin and others.

Not all EU countries have already switched to the euro. For many, this question remains open. For example, in Poland. Despite the fact that the government plans to complete the transition within five years, more than 70% of the population are against such an idea. The Czechs have the same reason. Although both of these countries fully meet the convergence criteria, their national currencies are still stronger.

At the beginning of the article, I mentioned the peculiarities of the transition to Euro-settlement in Bulgaria and Sweden. It turns out like this: one country really wants the euro for itself, but falls short of the criteria, and the second falls short, but does not want the euro, therefore, in every possible way, it refuses to enter the eurozone. Although Sweden was supposed to complete the transition ten years ago (under the terms of the Maastricht Treaty), the country's government is still against it.

The criteria for the convergence of the eurozone were established by the 1992 treaty as follows:

inflation - no more than 3.2%;
budget deficit - no more than 3%;
public debt in relation to GDP - no more than 60%;
long-term interest rates - no more than 6.5%;
participation in the Exchange Rate Mechanism (ERM II) - from two years.

Sweden fulfills all criteria except the last one. They refuse to join ERM II, thereby delaying the entry into the eurozone. But the Bulgarians, who have achieved the Cyrillic alphabet on banknotes, have not yet reached the level of experience in ERM II. They are optimistic and want to complete the transition by the end of 2019. So the day is not far off when the Bulgarian lev will surrender its post to the new national currency - the euro.

Hungary is very eager to move to the Eurozone. According to ECB experts, the country's economy will have to develop for a long time before meeting the criteria. Their neighbors, the Romanians (as well as the Croats), will complete the transition in the period 2019-20.

The Euro as a World Currency: Prospects and Growth

After World War II, the US dollar became the global currency that dominated all international finance markets. According to some reports, now on the world market, almost 80% of trade operations are carried out in dollars. The leadership and authority of the American "bucks" were not contested for half a century, until a new challenger - the euro - entered the arena.

The single economy of the European countries is a serious blow to the dominance of the dollar. The euro, introduced into cash circulation in 2002, "dropped" the dollar's share in reserve funds from 70.7% to 66.5%. And he "grew up" - from 17.9 to 24.2%. Today, the euro is rapidly overtaking the dollar in terms of the total value of cash on the world market (over 1,000 billion). The total value of dollar bills in free circulation is 790 billion.

Of course, today dollars still hold the lead in foreign exchange reserves, even despite the credibility weakened after the 2008 crisis. Some financial experts (especially Euro-optimists) believe that the dollar's dominance will end one day. Among them is Alan Greenspan, a prominent American economist and former head of the Federal Reserve. Such a person, in my opinion, can be trusted. According to Mr. Greenspan, it is only a matter of time before the exchange of dollars for euros as the world's reserve currency. In the meantime, the struggle between the euro and the dollar is equal. There is no place for the third extra (for example, the Russian ruble or the Chinese yuan) in this fight.

Poland is a member of the European Union, but has not yet adopted the euro. Housing here is more expensive than in Belarus, but much cheaper than in neighboring Germany and the Czech Republic. Prices per night in hotel 4 start at 2000 rubles. The food is also inexpensive, and the portions are traditionally large.

Things to do: for sightseeing you can go to Warsaw, Krakow or Wroclaw. You should not neglect small cozy towns, where ancient castles and monasteries, such as Czestochowa, have been preserved. Nature lovers will love the Mazury Nature Reserve with its countless lakes or the Bieszczady Mountains. Skiers and snowboarders are expected in Zakopane.

Hungary

Hungary also does without the European currency for now, and the Hungarian forint rate is growing more slowly than the rates of the “neighboring” currencies, which are more rigidly pegged to the euro. Here you can find accommodation for any budget, from hostels for 600 rubles to hotels with a large number of stars for tens of thousands per day. It should be borne in mind that an overnight stay in Budapest can cost almost twice as much as in other parts of the country. Food prices are lower than in Moscow, but the portions are very large.

Things to do: Budapest deserves the closest attention - one of the most beautiful European capitals on the banks of the Danube. In addition, in Hungary, one should pay tribute to the numerous thermal springs on which medical and recreational baths are built, as well as to the large lakes - Balaton and Heviz, on the banks of which both outdoor enthusiasts and sedate pensioners will find something to do.

Romania

Romania, like Hungary, is a member of the European Union, but does not use the European currency. It is one of the cheapest countries, which makes it attractive for tourists. The infrastructure here is less developed than that of its neighbors. The cost of housing varies from 2,000 rubles for a "three stars" in the capital Bucharest to 600 rubles for a fairly decent room in a monastery. Food is very cheap, for 150 rubles you can get a very decent lunch in a restaurant.

Things to do: the homeland of Count Dracula does not enjoy special attention of tourists, and in vain. This is an amazingly beautiful country with friendly people, ancient castles and monasteries, with ski and sea resorts. Do not limit yourself to visiting Bucharest, the charm of Romania is in small towns. And, of course, don't miss Transylvania, a picturesque land with an incredible number of fortresses.

Lithuania

Although the exchange rate of the national currency is tightly pegged to the euro, Lithuania remains the cheapest of the Baltic countries. You can spend the night in a three-star hotel for 2500 rubles, and apartments (including cottages) will cost less, but will not lose in quality. The food here is delicious, natural and not expensive at all.

Things to do: You can start with the inimitable Vilnius, which combines the features of the fashionable European capital and the old Teutonic town. Further - according to interests: lovers of castles should not miss Trakai - the only castle on the water in Eastern Europe, and for others it makes sense to go to the gentle Baltic Sea - to the wide beaches of Palanga or to the unique dunes of the Curonian Spit.

Bulgaria

Bulgaria is a member of the EU, the exchange rate is pegged to the euro, so prices have risen quite strongly. There is a huge selection of varied housing. You can find a decent room in a 2 * hotel in Sofia for 1000 rubles or stay at a camping on the coast for the same price. At the same time, in the depths of the country, you can spend the night in a pretty house for 300 rubles per person. Bulgaria is one of the few countries in Europe where it is much more profitable to buy a "package" tour than to book tickets and accommodation yourself, especially if you are interested in a beach holiday.

Things to do: although tourists usually associate Bulgaria with the sandy beaches of the Black Sea, there is a rather interesting "excursion" here, especially in small old towns, there are also good ski resorts in the west of the country.

Czech

The Czech Republic is such a European country that it’s even strange that the euro is still not accepted here. Undoubtedly, prices have risen here as well, but the situation is not critical yet. There are many hotels in Prague, the average price for 3 * now is 4000 rubles, but if you are traveling with a large company, it is much more profitable to rent an apartment.

Things to do: in the Czech capital and its immediate environs, you can spend a couple of weeks without ever thinking about boredom - a rather rare case for any city, even a European one. If you have already explored Prague, you can go to nature or to the waters - to Karlovy Vary.

Croatia

Croatia is not yet a member of the eurozone, which allows it to maintain quite attractive prices for vacations on the cleanest Adriatic coast. However, they vary greatly depending on the season. So, in April you can book a 4 * hotel in Dubrovnik for 4000 rubles, while in June it will cost at least 6000 rubles, and a comfortable camping on the coast at this time will cost 2500 rubles. The cheapest thing to do in Croatia is to rent a room in a private house.

Things to do: Croatia provides an amazing opportunity to combine beach holidays with a rich excursion program. To see ancient towns and amazing architectural ensembles, you don't need to go far from the sea. And having traveled all the local sights, you can "one day" visit Italian cities, for example, Venice.

Denmark

Although Denmark does not use the euro, the rate of the local kroon is rigidly tied to the rate of the European currency, and it is difficult to call a vacation in this picturesque Scandinavian country cheap. There is a wide variety of hotels here, from ultra-modern and designer hotels to those located in ancient castles. In any case, 3 * will cost no less than 6,000 rubles. Numerous hostels and campgrounds can be salvation - they are 2, or even 3 times cheaper.

Things to do: the capital of Denmark Copenhagen is one of the most modern and environmentally friendly capitals in Europe. Architectural landmarks are centered on the Daisy Road, the path that Danish kings have traveled for a long time. And if you have children, you cannot avoid the main European "Legoland".

Sweden

Sweden has not introduced the euro into circulation and, unlike other countries, does not plan to do so yet. The Swedish krona is growing against the ruble a little slower than the currencies of other countries, which leaves a good chance for those who want to relax in this country at "pre-crisis" prices. However, when planning a visit to Sweden, do not forget that this is one of the most expensive countries in the world. For example, finding a room for 7,000 rubles in a three-star hotel in Stockholm will be a real luck. The consolation is that there are quite decent hostels (from 1500 rubles per bed), and in the "outback" there are enough campgrounds, and hotels are at least a third cheaper.

Things to do: in Stockholm, be sure to visit the Old Town and the “museum island” Djurgården, where you can spend some unforgettable days with the whole family. In addition, in winter you can go to Lapland, to the famous ice hotel, and in summer - to the largest safari park in Europe, Kolmorden or to the Viking island of Gotland.

United Kingdom

Great Britain holds on tightly to its national currency, and that, in turn, is firmly on its feet. The pound is not as influenced by the euro as the currencies of other countries, but the UK remains a country that is not accessible to many. It is quite difficult to get a visa here, and the prices "bite". An overnight stay in a 3 * hotel in London will cost from 6,000 rubles, and in a farmhouse in Scotland - from 3,000 rubles.

Things to do: People usually travel to England to understand "traditional Britain" with its imperial past, eccentric present and unshakable royal family. Wales attracts connoisseurs of chivalrous castles, Roman roads and feats of arms. Scotland - hunters for fantastic landscapes and plaid kilts. Northern Ireland attracts both eternal freedom fighters and idyllic outdoor enthusiasts.

How else can you save

Vacation prices have gone up regardless of what currency is used to pay in your chosen country. Here are some ways to spend less:

It's easier to live in a place. If you are used to staying at a hotel, try living in an apartment, hostel, or camping. The sights around are the same, but you can spend a third (and sometimes half) less money. In addition, you can cook yourself, which will also help reduce costs.
Get to the place by car. Take your friends with you and share the cost of gasoline - you will win at least half of the amount allocated for transport, because you do not have to buy air tickets. This is a great way out for large families with children: even a trip to a place with several nights can be turned into an exciting adventure. Plus, you don't have to pay for your car rental to see all the nearby attractions.

Photo: thinkstockphotos.com, flickr.com