The European Union
THE EUROPEAN UNION
Lesson 6
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 27 EU Member States today, seventeen
have adopted the euro. Estonia is the most
recent member, having joined in Jan. 2011.
€ One of the striking benefits of a single
European currency are low interest rates due
to a high degree of price stability.
€ The euro is as stable and credible as the bestperforming currencies previously used in the
euro area countries.
The European Union
Before the Euro
a multitude of currencies
Diversity 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 which introduced
the Euro in 2001:
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Austria
Belgium
Finland
France
Germany
Greece
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Italy
Ireland
Luxembourg
Netherlands
Portugal
Spain
The European Union
The Euro
a single currency for Europeans
Can be used everywhere in the euro area
4Coins: one side with national symbols,
one side common
4Notes: no national side
EU countries using the euro in 2011
EU countries part of ERM II (in between)
EU countries not using the euro
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
• International
trade is
facilitated
• Inflation remains
low and stable
• 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 euro area comprises the 17 European
Union countries that have introduced the
euro since 1999.
• The ECB operates independently from
Member State governments.