ISO 4217 code: EUR - currency introduced in 12 countries belonging to the European Union in place of national currencies.

The decision to create a common currency of the European Union was made as part of the Maastricht Treaty. However, due to the failure of the Monetary Union, popularly known as the "currency snake", the introduction of the common currency was significantly delayed. It was not until the creation of the European Central Bank and the Eurosystem, which was a result of the Amsterdam Treaty, that this currency was actually implemented.

Euro graphic symbol

The euro graphic symbol is the Greek letter epsilon crossed by two parallel lines. It symbolizes the roots of European civilization, attempts to integrate our continent and ensure internal stability. Some also see the euro symbol as a challenge to the US dollar, which is characterized by two vertical lines.

Convergence criteria

To join the "euro zone", one must first meet strict convergence criteria, such as:

• inflation no higher than 1.5% than the average inflation rate in the three EU countries with the lowest inflation
• public debt no higher than 60% of GDP
• budget deficit no higher than 3% of GDP
• long-term interest rates no higher than 2% above the average interest rates in the three EU countries with the lowest inflation
• stable exchange rate over the last 2 years

Euro zone

This currency was introduced on January 1, 2002 introduced in the following countries:
Austria, Belgium, Finland, France, Greece, Spain, Netherlands, Ireland, Luxembourg, Germany, Portugal, Italy
However, under signed agreements, it includes 5 countries and 1 autonomous region, which are not members of the EU: Andorra, Montenegro, Monaco, San Marino, Vatican, Kosovo. On January 1, 2007, Slovenia will join the EURO zone.
Three countries out of the 15 that were members of the European Union at that time did not join the euro zone:

Great Britain - as a result of the decision of its parliament,
Sweden - as a result of failure to meet the requirements regarding the maximum budget deficit and the negative result of the referendum on this matter,
Denmark - as a result of the negative result of the referendum on this matter.

Exchange of national currencies for the euro

Initially, this currency was only an interbank settlement currency and was not in normal circulation. On January 1, 2002, the currencies of the euro zone member states were replaced with euro coins and banknotes, which was the largest single currency operation carried out in the world to date. The entire currency exchange operation ended on July 1, 2002, when the national currencies of the euro zone states were completely withdrawn. The exchange rates between the national currencies that the euro was supposed to replace were frozen on January 1, 1999.

The exchange rates at which the national currencies were exchanged for the euro on January 1, 2002: (1 euro to):

13.7603 Austrian schillings (ATS)
40.3399 Belgian francs (BEF)
1.95583 German marks (DEM)
166.386 Spanish pesetas (ESP)
5.94573 Finnish marks (FIM)
6.55957 French francs (FRF)
340.750 Greek drachmas (GRD)
0.787564 Irish pounds (IEP)
1936.27 Italian lire (ITL)
40.3399 Luxembourgish francs (LUF)
2.20371 Dutch guilders (NLG)
200.482 Portuguese escudos (PTE)

Since 2007, the euro is to be the currency of Slovenia; exchange rate: 1 EUR = 239.640 SIT (Slovenian tolars). 4.5 trillion euros in cash have been exchanged, and over 10 trillion euros have been converted from national currencies into bank accounts worldwide.

Euro issuance
Euro banknotes are printed under the direct control of the European Central Bank (in 12 different printing works) and have a uniform appearance in all countries. The coins are produced by the mints of individual countries and have the same shape, material and obverse, while the reverses are different in each country. The obverses of 1 to 5 eurocent coins show Europe on a world map. All countries are marked, including those that do not belong to the EU. Coins from 10 to 50 eurocents show individual member states at a certain distance from each other. On the other hand, 1 and 2 euro coins show countries united into one whole. This reflects the motto Unity in diversity. The distribution of banknotes and coins is handled by individual central banks of the eurozone countries under the strict control of the European Central Bank.

Euro in other countries

On the other hand, the so-called "sample euro coins" from Denmark, Sweden, Great Britain, Poland (there are even two variants - minted in Slovakia on behalf of Polish numismatic merchants and in Great Britain on behalf of a foreign company) and other countries joining the European Union are a private product, from which issuing banks (including the National Bank of Poland) are decidedly distancing themselves; however, this does not prevent trading in these coins at quite exorbitant prices. There are even "trial euro coins" from Switzerland, which is not a member of the Union, and even Scotland and Padania. The euro is also the official currency in Montenegro and Kosovo. The exchange rate of the transfer mark, the official currency of Bosnia and Herzegovina (fixed exchange rate of 1 EUR = 1.95583 MK) is also dependent on the euro.

Euro in Poland
According to information provided by the Ministry of Finance (February 8, 2006), Poland will be ready to enter the euro zone in 2009. Assuming the updated convergence program as binding, Poland will not meet the set criteria by 2008. In accordance with Eurostats decision on the classification of funds transferred to OFE outside the government and local government sector, the deficit in 2008 will exceed 3 percent and amount to 3.7 percent of GDP. Under the regulation of the Minister of Finance of April 15, 2004 (Journal of Laws No. 73, item 658), the euro can also be used in Poland for settlements in which one party is a consumer or a recipient of services (i.e., in a shop or at a hairdressers).