On January 1, 1999, 11 European Union countries chose to form an economic and monetary union (EMU) and start using the euro. The 11 countries locked their exchange rates to the euro. On January 21, 2002, euro notes and coins became available.
The 11 countries will also share a single interest rate, set by the European Central Bank (ECB), and a single foreign exchange rate policy. From this date, the ECB will be responsible for the monetary policy of these 'euro zone' countries.
Which countries joined the euro zone on January 1, 1999?
Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. Greece has also joined the euro transition.
What is the new money called?
The new currency is called the euro. A euro will be made up of 100 cents.
What happened on January 1, 2002?
On January 1, 2002, euro notes and coins became legal tender anywhere in the participating countries, regardless of the country of origin. They will circulate alongside national notes and coins. Old national notes and coins will be removed from circulation by January 31, 2002. This will vary some, country to country, and by July 2002, only euros will be in circulation and they will be the official currency. The period from January-July is sometimes referred to as the "dual circulation" period.
Can I use the euro in the UK?
While the UK is outside EMU the euro will be like any other foreign currency. Businesses can decide to accept the euro if they wish. The same may be true for Denmark and Sweden |
