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Wendy Crumbo, Staff Writer
On January 1, 1999, a single currency became prevalent in eleven Member States of the European Monetary Union. The eleven countries consist of Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. These countries are now sometimes referred to as "Euroland", "euro zone" or the "Euro-11". Denmark, Greece, Sweden and the United Kingdom, which are in the European Union, are not taking part in the euro system at this time, but may decide to participate at a later date.
The official title for this new currency is the "euro", with a lower case "e". Although it may be pronounced differently, all of the Member States will use the same name. "euro currency" is also an acceptable term, yet "euro dollar" is entirely inaccurate.
Inspired by the Greek letter Epsilon, the official symbol of the euro is an "E" with two parallel horizontal lines through it. The lines exemplify the stability of the euro. It is predicted that within a few years it will be as well known as the dollar sign ($). For all business, commercial and financial purposes, the approved abbreviation for the euro is "EUR".
The euro is divided into 100 cents. The different denominations of the euro notes are 500, 200, 100, 50, 20, 10, 5 euro. The different notes will vary in size, as well as in color. Windows and gateways were decided upon for the front of the notes symbolizing openness and collaboration in the EU. On the opposite side, a bridge is featured from a specific age, representing the importance of communication between Europeans and also with the rest of the world.
The eight euro coins will be 2 euro, 1 euro, 50 euro cent, 20 euro cent, 10 euro cent, 5 euro cent, 2 euro cent and 1 euro cent. The small valued coins will be made of copper. The medium valued coins will be nickel and the 1 and 2 euro coins will be bimetallic. On the face, each Member State will enhance the coin with their own motif. On the reverse, the coins will carry common designs. All euro can be used in any of the eleven countries, regardless of the national symbol it bears.
The euro banknotes and coins will not be available for use until January, 2002. However, the new currency can be used currently in the form of checks, traveler's checks, bank transfers and credit cards. In some countries it is already customary to give prices in both euros and local currency.
The exchange rates for the European currencies were permanently established on January 1, 1999. For example: 5000 Italian liras are worth 2,58 euros, and that will never change. These are the fixed rates comparable to each other and the euro:
1 euro (EUR) = 40,3399 BEF (Belgian francs)
= 1,95583 DEM (German marks)
= 166,386 ESP (Spanish pesetas)
= 6,55957 FRF (French francs)
= 0,787564 IEP (Irish pounds)
= 1936,27 ITL (Italian liras)
= 40,3399 LUF (Luxembourg francs)
= 2,20371 NLG (Dutch guilders)
= 13,7603 ATS (Austrian shillings)
= 200,482 PTE (Portuguese escudos)
= 5,94573 FIM (Finnish marks)
The euro is expected to become one of the two most important currencies in the world. This will make it no longer necessary for the eleven Member States to convert to US Dollars when transacting with other countries around the globe. This will prove to be very beneficial, taking into consideration all the exchange commissions that will be saved.
If you are planning a trip to Europe in the near future, the euro will not affect you until the year 2002. Until then, be prepared to pay in Italian Lira, German Marks, etc. In 2002, using the new European single currency will be just like using a different currency now, except there will be different notes and coins. The change will become noticeable when you travel between countries in the euro area. There will be no more currency exchange. Finding the best currency exchange rate, will no longer be a concern. You will also not have to worry about figuring price comparisons. The "euro" - making European travel a whole lot simpler.
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