The Origin and Purpose of the Euro (2024)

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Transcript

The euro is a monetary unit and the currency of the European Union.Although it debuted on January 1, 1999, the euro’s origins go back a few years earlier. In 1991 the 12 members of the European Community signed the Maastricht Treaty, which created an economic and monetary union that called for a common unit of exchange.Supporters of the single currency argued that it would boost trade by eliminating fluctuations in exchange rates between the various national currencies and would lead to lower prices.In 1998, 11 countries formally joined the new economic union, and the euro was officially introduced on January 1, 1999. It was initially launched as a noncash monetary unit. The physical note and coin versions of the euro would not debut until three years later, on January 1, 2002. The euro includes seven colourful bills, ranging from 5-euro to 500-euro notes, as well as eight different kinds of coins, ranging from 1-cent to 2-euro coins.Unlike many currencies that feature national figures and symbols, euro bills contain images of architectural and cultural elements and maps to symbolize European unity.However, the coins reflect national differences. While the side with the values is the same across all coins, the other side features unique national symbols for each country. Since the euro’s inception, many EU countries absent from the initial agreement have adopted the euro, including Slovakia, Cyprus, and others. The countries that have adopted the euro form the euro zone, and the common use of the euro in this zone is one of many factors unifying those countries.