The Euro - a history

After more than a decade of planning and preparation, Europe's single currency, the euro, finally came in to effect on January 1, 1999.  Originally designed by the European Union to be a medium of exchange between countries within the EU, while people within individual countries still used their own currency. However, within three years the euro had replaced many of the domestic currencies and became an everyday currency for the union members, when euro notes and coins were introduced on January 1, 2002.

Finland became the first country to join the euro, followed closely by Portugal and Ireland.  Initially Denmark, Sweden and Greece were not part of the euro, but conformed in later years.  Greece joined in 2001.

It was felt that the euro held many economic advantages for the EU, making travel easier for its citizens as there was now no need to exchange money when moving between countries; and perhaps most importantly removing exchange rate risk for trading. 

In 1999 Jacques Santer, the president of the European Commission, argued that the launch of the single currency was a historic event which would bring growth and stability to Europe.  More than a decade on, how wrong could he have been?