Euro - European Currency

The Euro is the single currency of 13 member countries of the European Union (Germany, Austria, Belgium, Spain, Finland, France, Greece, Eire, Italy, Luxembourg, the Netherlands, Portugal, and Slovenia). In 2007, the euro area represented 318 million inhabitants.

The euro is the second currency in the world for transactions; the US dollar is still the international benchmark currency. In December 2006, the European currency turned into the first currency in the world in terms of quantity of bank notes in circulation. It represented 37% of the transactions on the exchange market according to the Bank for International Settlements in 2004.

On January 1, 2008, Cyprus and Malta joined the Euro area; in 2009 it was joined by Slovakia.  In 2010, it will be joined by Lithuania, Bulgaria, Estonia, Leetonia, and the Czech Republic.  In 2013, Hungary and Romania will also join the euro area.

Countries of the Euro area  Countries of the Union which entered the euro area on January, 1st 2008  Countries of the Union which entered the euro area on January, 1st 2009  Countries of the Union which signed the Maastricht Treaty and will join the Euro area.  Countries of the Union which have a dispensation about the accession of the Euro. Countries that use the Euro as currency without being member of the European Union are hatched in blue.

The changeover to the single currency has been done in fits and starts, since the beginning of 1999.  The financial markets pass to the Euro (the exchange market, the stock exchange markets, the public debt…) then the double circulation of the currencies were put in place (national currencies and single currency).

Entering into the Euro area is not an easy, there are constraints. The countries which want to enter the euro area have to comply with several obligations:

• A government deficit inferior To 3% of the GDP
• A public debt inferior to 60% of the PIB
• A controlled inflation
• An independence of the Central bank of the country and the stability of the national currency

The Euro has as an aim to promote the intra-community trades and bring thanks to the single currency cohesion of the European Union members’ economic policies.