The European Union
THE EUROPEAN UNION
How 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.
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
The 12 countries that introduced
the Euro in 2001:
•
•
•
•
•
•
Austria
Belgium
Finland
France
Germany
Greece
•
•
•
•
•
•
Italy
Ireland
Luxembourg
Netherlands
Portugal
Spain
The European Union
The Euro: a single currency for Europeans
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:
EU countries using the euro in 2013
EU countries not using the euro
• Cyprus (2006)
• Malta (2006)
• Slovakia (2008)
•Slovenia (2009)
• Estonia (2011)
The European Union
Some of the Euro’s benefits
• International
trade is
facilitated
• European Central
Bank keeps price
inflation low so
interest rates also
remain low
• Currency
exchange costs
are eliminated
• Travelling is made
easier
• Comparing prices
is made simpler
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 euro was introduced in 1999
• The ECB operates independently from
Member State governments.
• The euro area comprises the 17 European
Union countries that have introduced the
euro since 1999.