Euro

of these articles is concerned with the European community currency. Other meanings under euro (term clarifying).


Euro
country: European union
partitioning: 100 cent
ISO-4217-Code: EUR
abbreviation:
Rate of exchange:
(24. April 2006)
1 EUR = 1,2365 USD
front of the 1-Euro-Münze

that Euro is the currency of the European monetary union and after the US Dollar of secondarymost important representatives in the world monetary system. It is controlled for states by the European central bank in Frankfurt/Main and is official currency in 12 of the 25 European Union - as well as in sixother countries. Besides there are five further countries and two currency areas with firm exchange rate to the euro.

The euro was introduced 1999 first only as Buchgeld. At the 1. January 2002 was in circulation brought for the first time euro-cash. The euro solved thereby thosein former times national currencies used off as currencies. A euro is partitioned in 100 cent. Its past record high on the foreign exchange market in relation to the US Dollar reached the euro to 30. December 2004 with 1,3668 US Dollar, its record low with 0,8225 US Dollar to 26. October 2000.

Table of contents

Geschichte des Euro

Der Euro als politisches Projekt

Euroscheine
Euroscheine

Der Ursprung des Euro als einheitliche Währung der EU ist into search the origins of the European union as well as in global restaurant history. On the one hand the material-economical integration with the customs union had far progressed already 1968, on the other hand one the collapse of the exchange rate system of Bretton Woods too strongly varying rates of exchange had led, afterOpinion of the policy the trade obstructed.1970 were concretized for the first time the idea of a European monetary union. In the Werner plan so mentioned the of Luxembourg prime minister Pierre Werner with experts compiled a European economic and monetary union (WWU) with a uniform currency. The project,its goal it was to realize the WWU until 1980 failed among other things because of the collapse of the Bretton Woods system. Instead 1972 the European rate of exchange federation was created and 1979 the European monetary system (EMS). EMS should all too strong fluctuations of the national currenciesprevent; for this purpose the ECU (European Currency unit) was created - an accounting unit, which one can already call forerunners of the euro. 1988 compiled the committee for the examination of the economic and monetary union under line of the chairman of the European commission, Jacques Delors, the Delors report in such a way specified. The Delors report plans the creation of the European economic and monetary union in three steps.

the euro and the German reunification

no coincidence seems to be that the European restaurantand monetary union was decided approximately at the same time as the German reunification. From official side, in particular of the German Federal Chancellor at that time Helmut Kohl, is disclaimed that because of the German reunification the German Mark was given up (old Federal Chancellor Helmut Schmidtit stressed once in an interview that Kohl was intelligent „enough, this impression to permit “and that this facilitated the German agreement). Undisputed it is however that it was very difficult for many Germans to give the German Marks up and a mehrheitliche agreementthe population in a popular vote to attain would not have been. Had turned around in particular in France the fears opposite a like-those-strengthened united Germany largely, so that in the opinion of from Germany a special step for European integration are set for some politicianshad.

Of a direct causal connection between European economic and monetary union and German reunification cannot be spoken however.

the euro takes shape to

the 1. Stage of the monetary union began at the 1. July 1990 with the productionfree capital traffic between the European Union states. At the 1. January 1994 began the 2. Stage: European Währungsinstitut (EWI) as forerunners of the European central bank (EZB) was created and the budgetary situation of the member states was examined. In addition put to 16. December 1995 that European advice in Madrid the name of the new currency firmly: „Euro “. Before this date also different names were in the discussion: Important candidates were thereby European Franconia, European crown and European gulden. By the use of an already well-known currency namethereby continuity should be signaled and be strengthened the confidence of the population into the new currency. Beyond that some participant countries would maintained have known the past name of their currency. Some dear-outer-applied also with „ECU “, the name of the old currency of accounting of European Union.However all failed these suggestions because of the reservations of individual states, in particular Great Britain. As reaction thereupon suggested by the German Minister of Finance Theodor Waigel the name „euro “. At this name the fact is unfortunate that there is probably hardly a word,more differently one expresses: on German [oiro], on English [ju: ro], on French and Netherlands [øro] and on Finnish and Italian [ɛuro].

To 13. Decembers 1996 agreed the Ministers of Finance of the European Union over the euro-stability pact, which should guarantee that all participating member states secure household discipline true and so the value of the currency. The third stage of the WWU stepped with the meeting of the European advice of the 1. to 3. May 1998 into force,on according to fixed convergence criteria the those were specified to eleven participating states of the economic and monetary union for the time being. To 19. June 2000 came the European advice to „the view that Greece achieved a high degree at lasting convergence and due to its, thosenecessary conditions for the introduction of the euro. “Therefore it Greece became by 1. January 2001 taken up to the economic and monetary union.

To 31. Decembers 1998 became the rates of exchange of the advice chairman at that time of the European Union Ministers of Finance Dr. Rudolf Edlinger (Austria) between the euro andthe individual currencies of the member states irrevocablly fixed and the euro became thus at the 1. January 1999 legal tender. One day later, to 2. , The European stock exchanges in Milan , Paris and Frankfurt/Main all securities already noted Januaryin euro. A further change in the temporal connection with the euro introduction was the change in the method of the price representation for foreign exchange. In Germany the Preisnotierung (1 USD = x) was the usual representational form up to the deadline. Since 1.January 1999 is represented the value of foreign exchange in all participant countries in form of the quantity rate (1 EUR = x USD). Furthermore could do since that 1. January 1999 transfers and debits in euro to be issued (in Greece since that 1. January2001). Accounts and passbooks could be expressed euro and in the old national currency. Securities and shares were only acted in euro.

Der Euro wurde am 1. Januar 2002 feierlich vor der Zentrale der EZB begrüßt
The euro became at the 1. January 2002 solemnly before the center of the EZB welcomed

in Germany became thatEuro in the context of the so-called Frontloading procedure starting from September 2001 at banks and trade distributes. The trade should be included by the expenditure by euro and acceptance of DM into the conversion process. The expenditure to the final consumers began at the 1. January2002. Before, starting from that 17. December 2001, could be already called, purchased in German banks and savings banks a first euro Münzmischung, also “starter kit “.

Deutsches Starterkit

during a certain transition period, which in each country individually either to at the end of February 2002or to at the end of June 2002 persisted, existed in each participating country currency in euro and the old national currency parallel. Meanwhile the former national currencies are no more valid currencies . Most currencies can however still with the respective national central banks approximatelyEuro to be exchanged, in Germany at the branches of the German Federal Bank (formerly state central banks). In the context of special campaigns some German department stores or these COUNT chains still accept the Mark as currencies.

In the 12 euro countries is handling alsothe earlier currencies differently regulated. In Germany a legal unlimited requirement on exchange of money free of charge of D-mark lights exists and - a conversion is only limited possible for coins in euro, in some other countries.Portuguese escudos and French and Belgian franc coins are not more exchangeable.

Despite the simple and free conversion mechanisms still D-mark coins were in the value of 3.72 billion euro (nearly 46 per cent of the Münzbestandes from December 2000) in the circulation in May 2005. The value of the notes not exchanged yet in euro amountsitself on 3.94 billion euro. It acts in opinion of the German Federal Bank however to a large extent over lost itself gone or destroyed money.

acceptance in the German population

in Germany has a research team of the professional school Ingolstadt two and a half yearsafter introduction of the euro a study to the acceptance of the euro in the German population submitted. Their result means that nearly 60 per cent of the German population meanwhile the euro positively opposite are adjusted. Many the asked one became however around the D-markmourn. When converting D-mark into euro the questioning resulted in that the asked ones would check more frequently with higher amounts. With all prices convert only 48 per cent of the asked ones, with prices over 100 euro however still 74 per cent. The reasonfor this is the simple conversion factor.

With journeys and in the vacation the euro wins clearly at sympathy. Also the better price comparison within Europe is positively noticed. According to the study many welcome the asked one also that by the common European Union currency an opposite standpointto dollar and Yen one created.

the euro in Austria

in Austria is accepted the euro meanwhile by the majority of the population, only few mourns the Schilling after.

The acceptance of the euro is generally in Austria somethingmore highly than in Germany, since the Austrian Schilling had hardly a great importance outside of Austria. The acceptance is particularly high in the tourism industry, because most tourists come from euro-countries and are omitted with them with the euro changing.

For the Austrian central bank (OeNB) the introduction of the euro was a relatively large expenditure, since euro lights had to be brought and - coins in three times so large quantity into the circulation, when Schilling before in the circulation were.

Euroländer

KarteEuropean states with purchase to the euro
of euro countries
country introduction
as
Buchgeld
introduction
as
cash
form of the participation
Andorra 1999 2002 monetary union with France, Spain
Belgium 1999 2002 official EWWU - member
Germany 1999 2002 official EWWU - member
Finland 1999 2002 official EWWU - Member
France 1999 2002 official EWWU - member
Greece 2001 2002 official EWWU - member
Republic of Ireland 1999 2002 official EWWU - member
Italy 1999 2002 official EWWU - member
Luxembourg 1999 2002 official EWWU - member
Kosovo 2002 monetary union with Germany
Monaco 1999 2002 monetary union with France
Montenegro 2002 monetary union with Germany
the Netherlands 1999 2002 official EWWU - member
Austria 1999 2002 official EWWU - member
Portugal 1999 2002 official EWWU - member
San Marino 1999 2002 monetary union with Italy
Spain 1999 2002 official EWWU- Member
Vatikanstadt 1999 2002 monetary union with Italy
members in the rate of exchange mechanism II
country currency guidance course
(1 EUR =)
WKM II entry WKM II withdrawal (reason)
Denmark Danish crown 7.46038 1. January 1999 -
Greece Greek Drachme 1. January 1999 31. December 2000 (euro introduction)
Estonia Estni crown 15.6466 27. June 2004 -
Latvia of Letti Lats 0.702804 29. April 2005 -
Lithuania Litas 3.45280 27. June 2004 -
Malta Maltese Lira 0.429300 29. April 2005 -
Slowakei Slowaki crown 38.4550 25. November 2005 -
Slovenia Tolar 239,640 27. June 2004 -
Cyprus Cyprus Pound of 0.585274 29. April 2005 -
Afrikanische Staaten mit dem CFA-Franc, der an den Euro gebunden ist.
African states with the CFA franc, which is bound at the euro.
Countries with firm rate of exchange to the euro outside of the WKM II
country currency rate of exchange
(1 EUR =)
Bosnia and Herzegowina Bosnian one convertible Mark of 1.95583 BAM
Bulgaria of Bulgarian Lew 1.95583 BGN
Central African economic and monetary union,
westAfrican economics and monetary union
CFA franc 655.957 XAF/XOF
several French overseas territories in the Pacific CFP franc 119.2529826 XPF
cape Verde cape Verde ch. 110.2651 CVE
Comoros Comoros francs 491.96775 KMF

of the euro is official currency in twelve of the 25 European Union states. Beyond that six further states have and/or. Parts of States of the euro as legal tender imported, without belonging the EWWU. In many central and Eastern European states functions thatEuro as complementary currency.

Beside countries, in which the euro functions as currency, a set of countries coupled itself over fixed rate of exchange regimes to the euro. Thus for example further eleven European Union states participate and into that in the European rate of exchange mechanism IICountries of the African CFA francs - 14 countries committed themselves zone at the euro. Altogether 40 states (or parts of states) use the euro or a currency dependent on the euro.

Euroisierte of countries within the EWWU

the twelve European Union countries,those introduced so far the euro as currency, are subject to the editions of the stability and growth pact (SWP), which represent a continuation of the convergence criteria for those countries, which already introduced the euro.

In November 2004 it became admits that Greece the convergence criteriaat no time had fulfilled. Instead it masked the actual budgetary deficit, as falsified data were announced to the European Union commission. Actually the participation in the euro, irregular thereby, had however no legal consequences, since a such case in the contracts does not considerbecame.

Euroisierte of countries outside of the EWWU

some states had been received already a monetary union with other participants of the euro zone and introduced therefore likewise the euro than legal currency. Thus existed monetary unions

During Monaco, San Marino and the Vatikanstadt in the meantime agreements with the European Union locked, them to the emissionfrom euro coins entitle, existed between Andorra and the union so far none such agreement. Therefore the euro is in Andorra legal tender, however there are no of Andorra coined/shaped euro coins.

In the course of their independence efforts the Kosovo and Montenegro have those German Marks as currency imported. After their abolishment the two regions introduced the euro as legal tender. However also they locked so far no agreement with the European Union over a Euroisierung, so that them neither influence on the monetary policythe EZB, be allowed still euro coins can take to coin/shape. Thus they do not participate to incomes also at the Seigniorage -.

countries in the rate of exchange mechanism II

major item: Their national

currencies wear rate of exchange mechanism II eleven European Union states over the rate of exchange mechanism II (WKM II)the euro coupled. The WKM II plans einenn Schwankungsbereich of the rates of exchange between euro and respective national currency of ± 15 per cent. Denmark beyond that closed an agreement with the European Union, the rate of exchange only over ± 2.25 per cent to varyto leave, several other participants limited the range on one side.

In accordance with Maastricht contract all European Union states are obligated to introduce the euro as currency. For this the two-year whereabouts are in the WKM II one from four convergence criteria to the euro-introduction.

To 8. March 2006 has Slovenia as the first of the States of an official request for the introduction of the euro to the 1, joined again. January 2007 posed. Beside Slovenia also Lithuania wants to introduce the euro 2007. European Union currency commissioner Joaquín Almunia stands for the unjustified demand of Lithuania due to the high inflation howeversceptically opposite.Estonia, which wanted to likewise introduce first 2007 the euro, will presumably for the time being place no request for admission due to its high inflation rate of over four per cent into the euro area.

For 2008 strive Latvia, Malta and Cyprus an entryon, the Slowakei would like to introduce the euro 2009.

other states with firm rate of exchange to the euro

some currencies, which were coupled in former times to one of the predecessor currencies of the euro, have now a firm rate of exchange to it. This concerns in particularearlier colonies of France; over the CFA francs 14 is coupled west and Central African countries to the euro. These are Equatorial Guinea, Benin, Burkina Faso, Côte d'Ivoire, Gabon, Guinea-Bissau, Cameroon, Republic of the Congo, Mali, The Niger, Senegal, Togo, Chad and the Central African republic. The French Treasury guarantees the rate of exchange connection.

Several French overseas territories maintain a similar connection; French Polynesien, Neukaledonien as well as whale-read and Futuna are over the CFP francs firmly onthe euro bind. Also the earlier Portuguese colony cape Verde is firmly bound at the euro. Bulgaria as well as Bosnia and Herzegowina have their currencies 1998 and/or. 1999 coupled to the German Marks, so that it today likewise over a euro-connectionorder.

European Union states, which decided (provisionally) against the euro

the six European Union states Denmark, Great Britain, Poland, Sweden, Tschechien and Hungary have themselves in different way against an imminent euro-introduction decided. Up toDenmark participate they so far also not in the WKM II and cannot thus the euro until further notice also introduce.

Great Britain and Denmark have a contractually agreed upon right to „the Opt Out “, thus to the final Nichtbeitritt to the euro area. Denmark becomesmake from this right also in the future use and the euro do not introduce. The British population is to co-ordinate after expressions of the British Prime Minister Tony Blair 2006 on an entry to the euro. By the refusal of the European Union condition in some states (2005)and the refusal of the referendum and. A. in Great Britain however also this date might be rather shifted.

The other states assured contractually the soon-possible introduction of the euro. However the four throughout not all convergence criteria fulfill:

Sweden leaned to 14.September 2003 in a popular vote the introduction of the euro off. The country prevents at present the introduction of the euro, by not carrying out the entry to the WKM II and thus the convergence criteria not fulfilled.

Contrary to the other seven 2004joined European Union states want to introduce Tschechien and Hungary the euro 2010 as currency, Poland so far no date for a euro-introduction called.

the euro as currencies outside of the euro zone

also outside of the euro zone is it in many EuropeanCountries (v. A. in routistic coined/shaped areas) possible to pay with euro. To call are here v. A.Poland, Hungary, Switzerland, Tschechien and Turkey. This brings however usually two disadvantages with itself:First of all the prices mostly to a rather unattractive rate of exchange into euro converted and secondly receives one back money usually only in the national currency, why one should use the local currency than currencies with a longer stay rather. The Vatikan, Monaco and San Marino use the euro as national currency and have own euro coins, are however not not in the European Union. The reason for this is that these countries before the euro introduction had also no own currency and already at that time the money systemthat it surrounding countries Italy and/or. France were attached.Andorra used in former times French francs and Spanish pesetas and likewise euro, has however so far no own euro coins now.

economic consequences of the Einheitswährung

of the introduction of the euroexpected one intensified trade and economic co-operation between the members of the euro zone, since existing rate of exchange risks within the community and the currency securities for European enterprises, necessary thereby, are omitted. It was assumed that this of advantage for the population of the euro zone itsbecame, since trade was in the past one of the main sources of economic growth.

Further one assumed differences in prices for products and services in the countries of the euro zone would decrease: By arbitrage - trade (trade of same products and services between thatEuro-countries) existing differences should become fast balanced. This leads to intensified competition between offerers and thus to low inflation and more prosperity of the consumers.

Some economists expressed doubts to the dangers of a Einheitswährung for a large and heterogeneous economic zone, how Euro country. In particular with asynchronous economic cycles a ready appropriate monetary policy difficulties.

A substantial economical problem represents the definition of the rates of exchange of the currencies taken part in the Einheitswährung. A national economy, which joins the Einheitswährung with overestimated currency, becomes in the comparisonhigher fortune however also higher costs and prices exhibit than states underestimated or really evaluate the Einheitswährung entered.

An economical reconciliation of overestimation is only with difficulty attainable in the consequence. With an overestimated economy the additional incentive for import worksthe higher prices deflation acre. The higher costs reduce the conditions for export in the common currency area and favour the misalignment of production into more economical states. In order the competitive ability of the economy to received, cost lowerings (in proportional height of overestimation) are inevitable. To the financing thatCost lowerings can be consulted really only the absorption of the fortune risen by overestimation.

It was political and is questionable whether EZB and European commission become the member countries sufficient household discipline to continue to be able: Extract themselves individual countries or land's groups from their budgetaryResponsibility, inflation rate and financing expenses for these countries will so long remain relatively low, as the majority of the remaining euro-countries is not to blame for itself too strongly. This could was late or not sufficient corrections of the budgetary policies to promote and to prosperity losses not lead (South German newspaper, 25. November 2003). Indeed the past experience seems to confirm these fears at least in case of from Germany to: Since introduction of the euro as cash Germany did not know the criterion of the overall economic household deficit, the 3% of the gross domestic productto exceed, not one year may keep. The sanctions planned in the euro-stability pact actually for this case were turned away from the advice of the European Ministers of Finance (EcoFin) so far.

A further effect concerns the petroleum price. Oil still becomes in US Dollarcomputed, therefore also the term Petrodollar. Within the OPEC it was discussed to change the prices over to euro with which also many third countries would be forced to convert for oil purchases of parts of their foreign exchange reserves from the dollar into euro assets. The Iraq had already the oil salesexclusively in euro excellently. Both Iran, as well as Venezuela under Hugo Chávez, which is a particularly loud representative of this change, expressed themselves approving to this conversion. However the discussion wears over it in the last years clearlyDynamics lost.

many consumers a felt raising the price of of

goods and services over the inflation rate determined effect of the euro on the inflation with the introduction of the euro. This raising the price of is attributed into Germany to the fact that some offerersPrices for goods and services partially up to 1:1 between German Mark and euro converted. Also before the euro-introduction the price was partly raised moderately, in order after the monetary union of prices on „rounds “amounts of euro- to round to be able. Colloquially came alongalso the term coined/shaped by the Springer press „Teuro “up. In accordance with the official statistics it came however to no important price increase: Thus for example Austria amounted to the Austrian consumer price index VPI 86 to 31 according to statistics. December 1998 133.7 andan average inflation rate of 2,45% in the 12 years from 1987 to 1998, during the VPI 96 of 102,2 (31 results in. December 1998) on 112,0 (31. December 2003) rose and thus the average inflation rate after the euro introduction to 1,84% sank. In Germany the consumer price index (base year 2000) of 81,9 (1991) rose to 98,0 (1998) and after the euro introduction to 104,5 (2003); that results in dropping the average inflation of 2,60% before the euro introduction to 1,29% after thatEuro introduction.

For the discrepancy between the measured, sunk inflation and the subjectively felt, risen inflation during the euro introduction, there are different theories; thus for example it is pointed out that daily bought goods like e.g. Food was actually above average raised the price of, during othersin the Warenkorb represented goods such as z. B. Electrical appliances were reduced in price, this reducing in price are however not felt, because the goods are bought more rarely. Also rounding error arises itself , with rough calculations with rounded factors (in Germany for instance 1:2 instead of 1:1,95583)affect on the converted price.

effect of the euro on the national Wirtschaftspolitiken

by the common currency is taken to the member states a form of national economic policy. Critics of the community currency see thereby an increasing danger of economic and political tensions, proponentsconsider the pooling of the monetary policy due to the reached convergence between the euro countries meaningful.

meaning of the euro in the global monetary system


international common reserve currencies (Lit.: EZB, 2005, S. 53)
Currency 2000 2001 2002 2003 2004
US Dollar 66.6% 66.9% 63.5% 63.8% approx. 66%
euro 16.3% 16.7% 19.3% 19.7% approx. 25%
Yen 6.2% 5.5% 5.2% 4.8% ? %
Pound of Sterling 3.8% 4.0% 4.4% 4.4% ? %
Swiss Franconia 0.5% 0.5% 0.6% 0.4% ? %
other one 6.6% 6.4% 7.1% 6.8% ? %

major item: Expect

key currency due to in the last years the firm rate of exchange development to nearly all other important currencies and the continuous fiscal policy difficulties of the USA individual economists a gradual erosion and a schliessliche separation dollar than world reserve andWorld key currency. This would mean the end of one era, after that the 2. World war with the separation British Pound by the US Dollar, dominating up to then , began. Most scientists evaluate the recurring expressions from development and developing countries concerning a Umgewichtungduring their currency reserves or a new invoicing of crude oil prices in euro however rather as a political argument on the USA, less than concrete intention. It should come however indeed to a further high weighting of the euro in the foreign exchange reserves of third countries,like that this is first as correction of a past Unterrepräsentierung to only regard - based on the handels and financial relations of most countries the euro is still clearly underrepresented in the currency reserves.

exchange rate euro and trend of prices

exchange rates of the old currencies to the euro

the rates of exchange of the currencies of the states participating in the monetary union became to 31. December 1998 fixed. Basis was thereby the conversion value of the ECU existing before (European Currency unit). With it that beganEuro to exist as Buchgeld: The euro became formally the currency of the participating states, the national currencies got the status of a subunit of the euro. The euro was only acted internationally, with rising tendency. There the national currencies as euro-subunit, had they were treated a fixed constant course opposite the euro. The course was exactly fixed on six places, in order to keep rounding errors as small as possible.

Correspond to a euro:

* 1, 95583 German Mark
* 13, 7603 Austrian Schilling
* 40, 3399 Belgian francs
* 166, 386 Spanish pesetas
* 5, 94573 Finnish Markkaa
* 6, 55957 French franc
* 0, 787564 Irish Pound
* 1936, 27 Italian lire
* 40, 3399 of Luxembourg francs
* 2, 20371 Netherlands guldens
* 200, 482 Portuguese escudos
* 340, 750 Greek Drachmen

after the introduction of the euro as Buchgeld may be converted the participating currencies only over a triangulation into one another. Must always first of the output currency in the euro and then of the eurointo the goal currency to be converted. A roundness is permitted thereby starting from the third euro-right-of-comma position as well as in the goal currency. By the triangulation rounding errors prevented, which could arise with the direct conversion, the procedure became therefore of the European commission obligatoryprescribed.

With the conversion of amounts, which are fixed still in “old” currencies, in euro only the total amount which can be paid may be rounded at the end of the computation. A roundness of individual computation factors or of intermediate results became another total resultlead. Thus the legal maxim was hurt that the introduction of the new currency does not affect the continuity of contracts. Practical example: If a monthly paying rent is agreed upon in a lease, which computes itself as product of renting surface and square meter price, is to convert and round not the square meter price into euro, but only the monthly amount for payment. Another proceeding became possibly. substantial lowerings or increases of the monthly payments cause (see. Judgement of the Federal High Court of the 3. March 2005 - III ZR 363/04).

historical course process

Der Kursverlauf des Euro von 1999 bis Anfang 2006
the course process of the euro from 1999 to at the beginning of 2006

to 4. January 1999, the first day of the stock broking in euro at the Frankfurt stock exchange, had the new European currency a rate of exchange of 1,1789 US Dollar per euro. ThatCourse of the euro developed in relation to the US Dollar first negatively and reached over the first two years of the stock broking ever further Tiefststände. To 27. January 2000 fell the euro under the euro-dollar parity, the all time low became then to26. October 2000 with 0,8225 US Dollar per euro reaches.

By April 2002 until December 2004 the euro revalued more or less continuously; to 15. July 2002 was reached again the parity, to 10. November 2004 it jumped over 1,30 for the first timeDollar and reached to 30. December 2004 its past record high with 1.3668 dollar. To the comparison: The D-mark reached their maximum value to 18. April 1995, when 1 US Dollar cost only 1.342 D-mark - converted 1.4574 corresponds dollar for each to euro.

To19. January 2005 fell below the euro however again the mark of 1.30 dollar and reached to 15. November with 1.1638 dollar its yearly low 2005. In the year 2006 the euro course moved so far in the range between 1.1813 dollar to 2.January and 1.2643 dollar to 28. April.

the opinions go

to meaning of the US Dollar euro-rate of exchange over the economic meaning of a strong euro apart. On the one hand the raw materials are acted further predominantly in US Dollar, so that the high euro course a reducing that in priceRaw materials causes. On the other hand by the high euro course the exports from the euro zone are raised the price of, so that the high euro course up to a certain degree weakens the economic growth. By the size of the euro area the rates of exchange and thus by rate of exchange fluctuations the caused haveRate of exchange risks however by far less meaning, than at times of national currencies.

The fall of the euro into the year 2002 is to be due probably to its physical Nichtexistenz at that time as cash, why the euro was more badly evaluated first, as it alone due tothe fundamental data would have been appropriate. The economic problems in the European community strengthened this trend and led to make unattractive for foreign investors investments in Europe what weakened the euro likewise. The economic prospects in Europe have themselvessince then hardly improved, yet it came briefly to the cash introduction to a comprehensive revaluation of the euro underestimated up to then. The explanations for it are partly the same, which lead long-term continuation of the euro-increase in value to the general acceptance central and;for this with priority three reasons are indicated:

  • The further rising household and deficit on the balance of payments on current account and with it accompanying the increase of the indebtedness of the USA,
  • the foreseeable regrouping of the currency reserves of states such as China, India, Japan, Russia and other large states as well as
  • thoseincreasing readiness of oil exporting States of, everything in front Russia to accept except the dollar also the euro as currencies for oil.

Not to neglect also the positive psychological aspect of an expanding European currency group, itself in the future still numerous other one, is new andold European Union entry countries will attach, with which the euro will replace the past national currency. Also this does not contribute insignificantly to the stabilization of the euro and increased its international reputation.

Währungscode and currency symbol

ISO currency code

the internationalThree-letter contraction (ISO currency code) of the euro reads EUR. The contraction is for several reasons a characteristic in the ISO currency code:

  • Usually the first letter of currencies, which are used in the context of a monetary union, is X. The standard appropriate contractionfor instance XEU could be.
  • If the first letter is not an X, then the first two letters stand for the Ländercode according to ISO 3166. The contraction European Union for the European union is in this standard defined, however only exeptionally, therethe European union no sovereign state is.
  • The last letter of the Währungscodes is usually the initial letter of the currency, the euro would have the contraction EUE to thus actually carry.

To the term “euro” does not exist after information of the EZB Plural, just as little for “cent”,for it officially also neither an indication still another abbreviation give. It is accordingly recommended to indicate amounts in the cent range in euro fractions thus e.g. for an amount of 20 cent 0,20 €. The subunit becomes unofficial however frequently also“Ct”, “ct”, “C”, “C” or “¢” shortened.

Euro-currency symbol

major item: Euro character

the euro character was introduced 1997 of the European commission as symbol for the European community currency.

It is based on one 1974 as study created draft of theformer chief commercial artist of the European community (EEC), Arthur Eisenmenger. It is a large round E, which possesses also two, transferred lines horizontal in the center (or like a C with an equals sign combines). It reminds at the Greek letters Epsilon (ε) and thus to antique Europe. The two straight lines stand for the stability of the euro and the European marketing area. Originally the abbreviation ECU should be used.

euro-cash

coins

major items: Euro coins

iteuro gives coins to 1, 2, 5, 10, 20, 50 euro-cent, as well as to 1 and 2 euro. The fronts of the euro coins are identical in all countries, on the back have them however national motive coinages. Nevertheless can in the entire currency area therebyare paid. On the Greek coins the nominal value is specified also on Greek, instead of cent however the designation Lepto/Lepta. On the front of the coins is a transferred double l; the initials of the Belgian designer Luc Luycx. The coins too1 and 2 euro consists of two different alloys. On customs conditions an electro-chemical voltage gradient , nickel develops - ions from the alloy extracts. This does not release however (against original fears) allergischen reactions.

There the Thai ten Baht- Coins the two-euro-coins in size and weight resemble strong and likewise from two different alloys exist, recognize automats in the euro area, which have an insufficient Münzprüfung, these coins and. And. as two-euro-coin.

Since 2004 extra charges become that of some countries2-Euro-Münze spent on the circulation, which are valid likewise in the entire euro-area. Germany starts the getting gate with its first extra charge 2006, on it illustrated to Luebeck. These coins were already supplied to the money circulation in large quantity. For the circulation becomesGermany now 16 years long no 2-Euro-Münzen with the motive of the federal eagle more coin/shape. Instead on the coins each year will have to be found a new motive from one of the 16 Lands of the Federal Republic. The highest expenditure volume (40 million coins) hasthe coin of this year to the olympic winter plays in Turin reaches.

notes

major items: Eurobank notes

the Eurobank notes are identical in all countries. There are notes to 5 euro, 10 euro, 20 euro, 50 euro, 100 euro, 200 euro and500 euro.

The lights point different motives to the topics ages and architectural styles in Europe. The fronts show a window or a window front, the backs in each case a bridge as motive. No material buildings are shown, but itthe style characteristics of the individual epochs were brought into a ark-typical illustration: Classical period on the 5-Euro-Schein, Romanesque on the 10-euro-light, gothic on the 20-euro-light, Renaissance on the 50-Euro-Schein, baroque and Rococo on the 100-Euro-Schein, iron and glass architecture on the 200-Euro-Schein and Modern architecture 20. Century on the 500-Euro-Schein.

The notes were arranged after European Union widths a competition by Austrian Robert Kalina and exhibit different modern security characteristics, in order to make the falsification more difficult.

A characteristic is the Counterfeit Deterrence system (CDS), whichreproducing on photocopying apparatuses or by PC to prevent is.

origin of the Eurobank notes

overview of the desk numbers and the associated country
country desk number
Belgium Z
Germany X
Finland L
France U
Greece Y
Ireland T
Italy S
Luxembourg R
The Netherlands P
Austria N
Portugal M
Spain V
back of a euro light.

One can gentleman-out-find on the basis the number of the euro light, in which euro country the light was printed.

On a euro light for example the number V stands… (see picture). The letterat the beginning of the number, the country of origin indicates the desk number. There for example V stands…, bedeuted this that the light in Spain was printed.

discussions around the cash

introduction of 1 - and 2-Euro-Scheinen

Austria demanded the introduction of a 2-Euro-Scheins, Italy even a 1-Euro-Scheins. In both countries cash notes with relatively small values were in the circulation - z before the introduction of the euro. B. the 20-Schilling light (1.45 euro) in Austria or the 1.000-Lire-Schein (52Cent) in Italy.

To 18. November 2004 decided the EZB advice to introduce no euro-lights with lower value. A 2-Euro-Geldschein will also not be introduced with the pressure of the new series toward end of this decade.

Possible reason: Coins are more economical. During coins oftenfar over ten years in the circulation are, must lights of low nominal value be already substantially in former times replaced. Since such notes would have to be reprinted therefore more frequently, from this substantially higher costs would result. Also the automat economy had itself to an introduction of 1and 2-Euronoten sceptically expressed.

abolishment of the 1 - and 2-Cent-Münze

in some euro countries are 1 - and 2-Cent-Münzen not common. Into Finland they were not inserted at all, because there since the introduction of the euro all calculations, not up-, - 0 or -, - 5 ends, when paying on the next five cent to be up or rounded off. Appropriate happened also already before with the Markka. In the Netherlands and to Belgium this system was transferred later. This is justified with thatsmall money circulation of the coins, which refers to a low need.

The opponents of the abolishment fear above all a second Teuro - effect, because many prices per unit could be rounded up to full five cent. It is however objected that this because of that psychologicallyimportant threshold price, which are lowered then rather of -, 99 up, 95, would not pass.

honors

in the year 2002 the euro was distinguished with the international Karl price to Aachen, there it “like no other integration step before thoseIdentification with Europe carries and thus a crucial, epoch-making contribution for growing together the people family makes ".

see also

to literature

Web on the left of

Commons: Euro - pictures, videos and/or audio files
Wiktionary: Euro - word origin, synonyms and translations
ThisArticle or paragraph represents only the situation in Germany . Help to describe the situation in other countries.
This article was taken up to the list of the articles worth reading.
 

  > German to English > de.wikipedia.org (Machine translated into English)