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While the designs are supposed to be devoid of any identifiable characteristics, the initial designs by Robert Kalina were of specific bridges, including the Rialto and the Pont de Neuilly , and were subsequently rendered more generic; the final designs still bear very close similarities to their specific prototypes; thus they are not truly generic.
The monuments looked similar enough to different national monuments to please everyone. Capital within the EU may be transferred in any amount from one country to another.
All intra-EU transfers in euro are treated as domestic transactions and bear the corresponding domestic transfer costs.
Of the symbol, the EC stated . The European Commission also specified a euro logo with exact proportions and foreground and background colour tones.
Placement of the currency sign relative to the numeric amount varies from nation to nation, but for texts in English the symbol or the ISO -standard "EUR" should precede the amount.
The euro was established by the provisions in the Maastricht Treaty. In the Maastricht Treaty, the United Kingdom and Denmark were granted exemptions per their request from moving to the stage of monetary union which resulted in the introduction of the euro.
For macroeconomic theory, see below. The name "euro" was officially adopted in Madrid on 16 December Due to differences in national conventions for rounding and significant digits, all conversion between the national currencies had to be carried out using the process of triangulation via the euro.
The definitive values of one euro in terms of the exchange rates at which the currency entered the euro are shown on the right.
The rates were determined by the Council of the European Union , [note 16] based on a recommendation from the European Commission based on the market rates on 31 December The European Currency Unit was an accounting unit used by the EU, based on the currencies of the member states; it was not a currency in its own right.
They could not be set earlier, because the ECU depended on the closing exchange rate of the non-euro currencies principally the pound sterling that day.
The procedure used to fix the conversion rate between the Greek drachma and the euro was different, since the euro by then was already two years old.
While the conversion rates for the initial eleven currencies were determined only hours before the euro was introduced, the conversion rate for the Greek drachma was fixed several months beforehand.
Their exchange rates were locked at fixed rates against each other. The notes and coins for the old currencies, however, continued to be used as legal tender until new euro notes and coins were introduced on 1 January The official date on which the national currencies ceased to be legal tender varied from member state to member state.
The earliest date was in Germany, where the mark officially ceased to be legal tender on 31 December , though the exchange period lasted for two months more.
Even after the old currencies ceased to be legal tender, they continued to be accepted by national central banks for periods ranging from several years to indefinitely the latter for Austria, Germany, Ireland, Estonia and Latvia in banknotes and coins, and for Belgium, Luxembourg, Slovenia and Slovakia in banknotes only.
The earliest coins to become non-convertible were the Portuguese escudos , which ceased to have monetary value after 31 December , although banknotes remain exchangeable until The authors conclude that the crisis "is as much political as economic" and the result of the fact that the euro area lacks the support of "institutional paraphernalia and mutual bonds of solidarity of a state".
The euro is the sole currency of 19 EU member states: With all but two of the remaining EU members obliged to join, together with future members of the EU, the enlargement of the eurozone is set to continue.
The euro has been used as a trading currency in Cuba since ,  and Syria since In , Zimbabwe abandoned its local currency and used major currencies instead, including the euro and the United States dollar.
Since its introduction, the euro has been the second most widely held international reserve currency after the U. Over this period, the share held in U.
The euro inherited and built on the status of the Deutsche Mark as the second most important reserve currency. The euro remains underweight as a reserve currency in advanced economies while overweight in emerging and developing economies: The possibility of the euro becoming the first international reserve currency has been debated among economists.
Outside the eurozone, a total of 22 countries and territories that do not belong to the EU have currencies that are directly pegged to the euro including 14 countries in mainland Africa CFA franc , two African island countries Comorian franc and Cape Verdean escudo , three French Pacific territories CFP franc and three Balkan countries, Bosnia and Herzegovina Bosnia and Herzegovina convertible mark , Bulgaria Bulgarian lev and Macedonia Macedonian denar.
With the exception of Bosnia, Bulgaria, Macedonia which had pegged their currencies against the Deutsche Mark and Cape Verde formerly pegged to the Portuguese escudo , all of these non-EU countries had a currency peg to the French Franc before pegging their currencies to the euro.
Within the EU several currencies are pegged to the euro, mostly as a precondition to joining the eurozone. In economics, an optimum currency area, or region OCA or OCR , is a geographical region in which it would maximise economic efficiency to have the entire region share a single currency.
There are two models, both proposed by Robert Mundell: Mundell himself advocates the international risk sharing model and thus concludes in favour of the euro.
Before the lates recession it was considered unlikely that a state would leave the euro or the whole zone would collapse. John Lanchester, writing for The New Yorker , explains it:.
The most obvious benefit of adopting a single currency is to remove the cost of exchanging currency, theoretically allowing businesses and individuals to consummate previously unprofitable trades.
For consumers, banks in the eurozone must charge the same for intra-member cross-border transactions as purely domestic transactions for electronic payments e.
Financial markets on the continent are expected to be far more liquid and flexible than they were in the past.
The reduction in cross-border transaction costs will allow larger banking firms to provide a wider array of banking services that can compete across and beyond the eurozone.
However, although transaction costs were reduced, some studies have shown that risk aversion has increased during the last 40 years in the Eurozone.
Another effect of the common European currency is that differences in prices—in particular in price levels—should decrease because of the law of one price.
Differences in prices can trigger arbitrage , i. Therefore, prices on commonly traded goods are likely to converge, causing inflation in some regions and deflation in others during the transition.
Some evidence of this has been observed in specific eurozone markets. Before the introduction of the euro, some countries had successfully contained inflation, which was then seen as a major economic problem, by establishing largely independent central banks.
The euro has come under criticism due to its imperialistic style regulation, lack of flexibility and  rigidity towards sharing member States on issues such as nominal interest rates.
Many national and corporate bonds denominated in euro are significantly more liquid and have lower interest rates than was historically the case when denominated in national currencies.
While increased liquidity may lower the nominal interest rate on the bond, denominating the bond in a currency with low levels of inflation arguably plays a much larger role.
A credible commitment to low levels of inflation and a stable debt reduces the risk that the value of the debt will be eroded by higher levels of inflation or default in the future, allowing debt to be issued at a lower nominal interest rate.
Unfortunately, there is also a cost in structurally keeping inflation lower than in the United States, UK, and China. The result is that seen from those countries, the euro has become expensive, making European products increasingly expensive for its largest importers.
Hence export from the euro zone becomes more difficult. In general, those in Europe who own large amounts of euros are served by high stability and low inflation.
A monetary union means countries lose the main mechanism of recovery of their international competitiveness by weakening depreciating their currency.
When wages become too high compared to productivity in exports sector then these exports become more expensive and they are crowded out from the market within a country and abroad.
This drive fall of employment and output in exports sector and fall of trade and current account balances.
Fall of output and employment in tradable goods sector may be offset by growth of non-exports sectors, especially in construction and services. Increased purchases abroad and negative current account balance can be financed without a problem as long as credit is cheap.
A country in a monetary union cannot use weakening of currency to recover its international competitiveness. To achieve this a country has to reduce prices, including wages deflation.
This means years of high unemployment and lower incomes as it was during European sovereign-debt crisis. The euro has most specifically stimulated investment in companies that come from countries that previously had weak currencies.
The introduction of the euro has led to extensive discussion about its possible effect on inflation. In the short term, there was a widespread impression in the population of the eurozone that the introduction of the euro had led to an increase in prices, but this impression was not confirmed by general indices of inflation and other studies.
The study found that consumers based their beliefs on inflation of those cheap goods which are frequently purchased.
One of the advantages of the adoption of a common currency is the reduction of the risk associated with changes in currency exchange rates.
It has been found that the introduction of the euro created "significant reductions in market risk exposures for nonfinancial firms both in and outside Europe".
The introduction of the euro seems to have had a strong effect on European financial integration. According to a study on this question, it has "significantly reshaped the European financial system, especially with respect to the securities markets [ As of January , and since the introduction of the euro, interest rates of most member countries particularly those with a weak currency have decreased.
Some of these countries had the most serious sovereign financing problems. The evidence on the convergence of prices in the eurozone with the introduction of the euro is mixed.
Several studies failed to find any evidence of convergence following the introduction of the euro after a phase of convergence in the early s.
A study suggests that the introduction of the euro has had a positive effect on the amount of tourist travel within the EMU, with an increase of 6. The ECB targets interest rates rather than exchange rates and in general does not intervene on the foreign exchange rate markets.
This is because of the implications of the Mundell—Fleming model , which implies a central bank cannot without capital controls maintain interest rate and exchange rate targets simultaneously, because increasing the money supply results in a depreciation of the currency.
In the years following the Single European Act , the EU has liberalised its capital markets and, as the ECB has inflation targeting as its monetary policy , the exchange-rate regime of the euro is floating.
The euro is the second-most widely held reserve currency after the U. After its introduction on 4 January its exchange rate against the other major currencies fell reaching its lowest exchange rates in 3 May vs Pound sterling , 25 October vs the U.
Afterwards it regained and its exchange rate reached its historical highest point in 15 July vs U. With the advent of the global financial crisis the euro initially fell, to regain later.
Despite pressure due to the European sovereign-debt crisis the euro remained stable. The formal titles of the currency are euro for the major unit and cent for the minor one-hundredth unit and for official use in most eurozone languages; according to the ECB, all languages should use the same spelling for the nominative singular.
Bulgaria has negotiated an exception; euro in the Bulgarian Cyrillic alphabet is spelled as eвро evro and not eуро euro in all official documents.
From Wikipedia, the free encyclopedia. This article is about the currency. For other uses, see Euro disambiguation. For other uses, see EUR disambiguation.
Other partial users 1. Single euro payments area 13 from Abandoned treaties and agreements. Council of the EU Presidency. European Court of Justice.
Participating Schengen Area States. Candidate Countries for EU Membership. Foreign relations of EU Member States. Euro coins and Euro banknotes.
Single Euro Payments Area. History of the euro. This section needs additional citations for verification.
Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Eurozone crisis and Greek government-debt crisis.
Eurozone , International status and usage of the euro , and Enlargement of the eurozone. International status and usage of the euro. External adopters of the euro.
Currencies pegged to the euro. Currencies pegged to the euro within narrow band. External adopters of the US dollar. Currencies pegged to the US dollar.
Currencies pegged to the US dollar within narrow band. Euro exchange rate against U. Linguistic issues concerning the euro.
Euro portal Money portal European Union portal Numismatics portal. The Caribbean Netherlands introduced the United States dollar in Official Journal of the European Union.
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Metalurh Donetsk , the sixth-placed team of the —14 Ukrainian Premier League , would have qualified for the Europa League second qualifying round, but had been excluded from participating by the UEFA Club Financial Control Body due to overdue payables.
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The Stadion Narodowy in Warsaw hosted the final. Alan Romelu Lukaku 8 goals each. Teams Notes 1 Spain. Teams Notes 19 Israel. Teams Notes 37 Lithuania.
Trabzonspor 4th [Note TUR]. Ironi Kiryat Shmona CW. Torino 7th [Note ITA]. Bursaspor 8th [Note TUR]. Hapoel Tel Aviv 4th. Jagodina 3rd [Note SRB].
UE Santa Coloma 2nd. Airbus UK Broughton 2nd. Advance to knockout phase.Archived from the original on 7 June Archived from the original PDF on 5 December EurozoneInternational status and usage of the euroand Enlargement of the eurozone. Gruppensieger em 2019 Logo to Letter". Archived from the original Euro jackpot zahlen aktuell on 3 September The notes and coins for the old currencies, however, continued to be used as legal tender alexis sanchez bayern new euro notes and coins were introduced on 1 January Simon Switch Switch Wall Switch. Single euro payments area 13 from The evidence on the convergence of prices in the eurozone with the introduction of the euro is mixed. The euro inherited and built on top games dortmund status of the Deutsche Mark as the second most important reserve currency.
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Turkish side lose match-fixing ban appeal". Retrieved 18 May Retrieved 27 May Retrieved from " https: Views Read Edit View history. In other projects Wikimedia Commons.
The Stadion Narodowy in Warsaw hosted the final. Alan Romelu Lukaku 8 goals each. Teams Notes 1 Spain. Teams Notes 19 Israel.
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