The European Union

THE EUROPEAN UNIONHow do individuals, businesses and economies

benefit from using the Euro?

The European Union

The Euro

In 1999, the euro area was established as a currency in eleven of the then fifteen EU Member States.

Of the 28 EU Member States today, seventeen have adopted the euro. Estonia most recently joined in 2011, and Latvia is expected to adopt the euro in 2014.

In response to the economic and financial crisis, the EU created a new set of rules on enhanced EU economic governance which entered into force in December 2011.

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The European Union

Before the Euro: a multitude of currencies

• Cumbersome inter-state trading

• Comparing prices more difficult

• Currency exchange can be unpredictable in contracts/ loans

The European Union

The Euro: a single currency for Europeans

• Austria• Belgium• Finland• France• Germany• Greece

• Italy• Ireland• Luxembourg• Netherlands• Portugal• Spain

The 12 countries that introduced the Euro in 2001:

The European Union

The Euro: a single currency for Europeans

EU countries using the euro in 2013

EU countries not using the euro

Can be used everywhere in the 17-country euro area

Coins: one side with national symbols, one side common Notes: no national side

New Euro countries since 2001:

• Cyprus (2006)• Malta (2006)• Slovakia (2008)

•Slovenia (2009)• Estonia (2011)

The European Union

Some of the Euro’s benefits

• European Central Bank keeps price inflation low so interest rates also remain low

• Travelling is made easier

• Comparing prices is made simpler

• International trade is facilitated

• Currency exchange costs are eliminated

The European Union

United in Diversity - The €uro

The European Union

United in Diversity - The €uro

The European Union

European Central Bank

• The European Central Bank (ECB) is the central bank for Europe's single currency, the euro.

• The ECB’s main task is to maintain the euro's purchasing power and thus price stability in the euro area.

• The ECB operates independently from Member State governments.

• The euro area comprises the 17 European Union countries that have introduced the euro since 1999.

The euro was introduced in 1999