EUROPEAN COMMISSION - PRESS RELEASE
Euro notes and coins – 10 years on
Brussels, 2 January 2012 - 1 January 2002 marked the introduction of euro notes
and coins in the European Union, ushering in an unprecedented alignment of
monetary policies and closer cooperation between countries of the euro area.
Whilst the euro and Economic and Monetary Union provided a sound basis for
economic progress, the banking crisis of 2008 and its consequences have tested
the system to the full. The success of the euro has proven to be dependent on
sound and sustainable public finances and robust macroeconomic policies. The
basis for recovery already exists with the recently strengthened EU rules on
economic governance and surveillance. It is being further reinforced through a
'Fiscal Compact' agreed by EU leaders in the pursuit of budgetary discipline and
reinforced economic policy coordination and governance throughout the eurozone.
In the pre-crisis period, the euro area as a whole benefitted from macroeconomic
stability with stable inflation, low interest rates, an exceptionally long period of
economic growth and a stronger internal market. The 332 million people who use
the euro no longer have to pay extra costs to exchange currencies and there is
more transparency in cross-border transactions, enabling consumers to compare
prices between one eurozone country and another.
European Commission Vice-President for Economic and Monetary Affairs and the
Euro, Olli Rehn, said, "against the backdrop of today's economic fragility, this is an
opportune moment to recall the fundamental principles on which the euro was built
and bring about a return to a Europe of strength and opportunity. We have the
bricks and mortar; we have the manpower. We now look forward to political will,
strong determination and swift action to restore economic growth, and create more
jobs and restore confidence in investors and the public."
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Background
Before joining the euro, without exception, all potential member countries are
required to adhere to strict economic and monetary criteria in order to maintain
budgetary discipline. The euro drew Member States towards closer cooperation for
the common aim of a stable currency and economy that would benefit us all. Before
the banking crisis struck in 2008, the European Union was on track to achieving
these goals.
Nevertheless, inside the euro area, fiscal and macroeconomic imbalances built up
over the decade. Addressing these imbalances in the EU has required immense
efforts by the public sector to protect the interests of governments, businesses and
citizens throughout the EU. Without the Economic and Monetary Union, the global
financial crisis would have unleashed a series of devastating currency crises in
Europe. The effect on economies, governments, businesses and even people's
everyday lives would have been unimaginable.
The fundamental purpose of economic and monetary union and the euro was - and
still is - to allow the European economy to function better, create more jobs and a
better life for Europeans. The euro is not just a technical monetary arrangement,
but a symbol for the determination to work together in a spirit of solidarity.
The euro does not bring economic stability and growth on its own. First, this is
achieved through the sound management of the euro-area economy under the
rules of the EU Treaty and the Stability and Growth Pact (SGP), a central cog in the
wheel of Economic and Monetary Union (EMU).
Second, the euro as the currency of the European Union is the key mechanism for
enhancing the benefits of the single market, trade policy and political co-operation.
The SGP has just been strengthened through the 'six-pack' set of rules which
entered into force in the EU on 13 December 2011. These new instruments will
help ensure, now more than ever, that everyone sticks to the jointly agreed rules,
and will therefore significantly help stabilise the EU economy and prevent a new
crisis from occurring again. This set of tools includes fiscal rules and a new
emphasis on reducing high levels of debt, backed up by a credible sanctions
mechanism, and an effective framework to prevent and address broader
macroeconomic imbalances.
This major milestone was made just days after the European Council of 9
December, which EU leaders took courageous decisions to strengthen the
credibility of our crisis response, both as regards further reinforcement of economic
governance towards a new fiscal compact – and strengthening the financial
firewalls to contain the contagion and ultimately protect economic growth and jobs.
For more information:
MEMO/11/945
MEMO/11/898
DG ECFIN website:
http://ec.europa.eu/economy_finance/euro/index_en.htm
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Contacts :
Amadeu Altafaj Tardio (+32 2 295 26 58)
Vandna Kalia (+32 2 299 58 24)
Catherine Bunyan (+32 2 299 65 12)
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