The introduction of the euro in 2002 may be the most important change in currency since the Roman Empire. The single monetary unit for most of the European Union (EU) states has become as strong as the U.S. dollar. But what are the effects for travelers in Europe and how is the new currency used?
When did the changeover happen?
The last date for changeover to the euro was February 28, 2002. By this date, all coins and notes of old currency became unusable. Some countries changed over earlier; in Germany, for example, the last day that the Mark was permitted was December 31, 2001. As new countries join the EU, they will also switch over to the euro, though strict financial and economic standards must be met before they can adopt the currency.
Which countries use the euro?
The countries using the euro are known as the "Eurozone" and are made up of members of the EU. Twelve countries initially joined the Eurozone: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. In all of these countries the only accepted currency is the euro. Three major members of the EU still continue to use their own currency: Great Britain (the pound), Denmark (Danish krone) and Sweden (Swedish krona). The ten new countries that joined the EU in 2004 have yet to join the Eurozone, though dates have been set for their changeover of currency: Cyprus (2007), Estonia (2007), Latvia (2008), Lithuania (2007), Malta (2008), Slovenia (2007), the Czech Republic (2009), Poland (2009), Hungary (2010) and Slovakia (2008). Romania and Bulgaria are both set to join the EU on January 1, 2007 and already have proposed dates to adopt the euro in 2012-2013 and 2009, respectively.
Additional members of the Eurozone that are not EU states are Monaco, San Marino and the Vatican City, which all use euros and have permission to mint the currency in small amounts within the state. Overseas territories of some Eurozone countries, such as French Guyana and Martinique, also use the currency. Finally, some countries that used to use old currencies (such as the French franc) now use the euro, though they have not entered into legal arrangements with the EU and are not allowed to manufacture the coins. These include Montenegro, Andorra and Kosovo.
Over 300 million people now use the euro as their currency.
What does the euro look like?
Like the U.S. dollar, a euro is divided into 100 cents. There are seven different bills and eight different coins in use. The coins are: 1, 2, 5, 10, 20 and 50 cents; and one and two euro pieces. The bills are available in denominations of 5, 10, 20, 50, 100, 200 and 500 euros. The coins all have the same front, but each country in the Eurozone has printed different designs on the back. Countries that are monarchies often have a picture of the reigning monarch and others tend to have national symbols or representations of the country. The Italian euro coins, for instance, all have individual designs on the back, relating to a common theme. The one euro coin has a picture of the Vitruvian Man by Leonardo da Vinci on the back; the five cent coin has a picture of the Colosseum. The Italian people were allowed to vote on the choice of designs by a TV poll. However, coins from all EU countries are interchangeable and can be used throughout the Eurozone.
The euro bills all have a common design on both sides.
What are the effects of the euro's introduction?
The introduction of a single European currency was intended to stimulate trade and travel within Europe. Though some countries who adopted the euro found that there was a slight rise in prices immediately after it was adopted, the news is all good for those traveling in Europe. The ease of using the same currency in more than 12 countries within a close geographical location is noticeable. Not only do you not have to change currency more than once if you're planning on visiting France, Italy and Germany, but you also won't have to pay commissions to get money converted, so if you're visiting a lot of European countries, you can save a considerable amount of money. The conversion rate from dollars to euros fluctuates, but as of September 2009, $1 = 0.7 euros (1 euro = $1.45).
