euro

euro¹

/yoor"oh, yerr"-/, n., pl. euros, (esp. collectively) euro.

wallaroo.

[ < Ngajuri (Australian Aboriginal language spoken around Jamestown and Peterborough, South Australia) yuru]

euro²

/yoor"oh, yaw"-/, n., pl. euros.

the official common currency of participating European Union countries, effective from January 1, 1999.

[1970-75; by shortening and alter. of Eurocurrency]

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Single currency of 12 countries of the European Union (EU), including Germany, France, and Italy.

The euro was adopted as a unit of exchange in January 1999. Those who advocated the currency believed it would strengthen Europe as an economic power, increase international trade, simplify monetary transactions, and lead to pricing equality throughout Europe. Euro currency notes and coins were introduced in January 2002 and became the sole national currency in all participating countries by March 1. Britain and Sweden decided not to adopt the euro immediately, and voters in Denmark rejected it.

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also called  Wallaroo,  

      one of the largest species of kangaroo (q.v.).

▪ currency unit

 monetary unit and currency of the European Union (EU). It was introduced as a noncash monetary unit in 1999, and currency notes and coins appeared in participating countries on January 1, 2002. After February 28, 2002, the euro became the sole currency of member states, and their national currencies ceased to be legal tender. The euro is represented by the symbol €.

      The euro's origins lay in the Maastricht Treaty (1991), an agreement among the then 12 member countries of the European Community (now the European Union)—United Kingdom, France, Germany, Italy, Ireland, Belgium, Denmark, The Netherlands, Spain, Portugal, Greece, and Luxembourg—that included the creation of an economic and monetary union (EMU). The treaty called for a common unit of exchange, the euro, and set strict criteria for conversion to the euro and participation in the EMU. These requirements included annual budget deficits not exceeding 3 percent of gross domestic product (GDP), public debt under 60 percent of GDP, exchange rate stability, inflation rates within 1.5 percent of the three lowest inflation rates in the EU, and long-term inflation rates within 2 percent. Although several states had public debt ratios exceeding 60 percent—the rates topped 120 percent in Italy and Belgium—the European Commission (the executive branch of the EU) recommended their entry into the EMU, citing the significant steps each country had taken to reduce its debt ratio.

      Supporters of the euro argued that a single European currency would boost trade by eliminating foreign exchange fluctuations and reducing prices. Although there were concerns regarding a single currency, including worries about counterfeiting and loss of national sovereignty and national identity, 11 countries (Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, The Netherlands, Portugal, and Spain) formally joined the EMU in 1998. Britain and Sweden delayed joining, though some businesses in Britain decided to accept payment in euros. Voters in Denmark narrowly rejected the euro in a September 2000 referendum. Greece initially failed to meet the economic requirements but was admitted in January 2001 after overhauling its economy. In 2007 Slovenia became the first former communist country to adopt the euro. Having demonstrated fiscal stability since joining the EU in 2004, both Malta and the Greek Cypriot sector of Cyprus adopted the euro in 2008; Slovakia did so in 2009. (The euro is also the official currency in several areas outside the EU, including Andorra, Montenegro, and San Marino.) The participating countries are known as the euro area, euroland, or the euro zone. In 1998 the European Central Bank (ECB) was established to manage the new currency. Based in Frankfurt, Germany, the ECB is an independent and neutral body headed by an appointed president who is approved by all member countries to serve an eight-year term.

      The euro was launched on January 1, 1999, replacing the precursor ecu at a 1:1 value. Until the circulation of currency notes and coins in 2002, the euro was used only by financial markets and certain businesses. Many experts predicted that the euro could eventually rival the dollar as an international currency.

 Unlike most of the national currencies that they replaced, euro banknotes do not display famous national figures. The seven colourful bills, designed by the Austrian artist Robert Kalina and ranging in denomination from €5 to €500, symbolize the unity of Europe and feature a map of Europe, the EU's flag, and arches, bridges, gateways, and windows. The eight euro coins range in denominations from one cent to two euros. The coins feature one side with a common design; the reverse sides' designs differ in each of the individual participating countries.

 

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