The „€uro“ and the Economic and Monetary Union (EMU)

The euro is the European Union's single currency. It was introduced on 1 January 1999 in eleven of the fifteen Member States of the Union. These eleven had successfully implemented the four convergence criteria set down in the Treaty of the European Union (also called the Maastricht Treaty) in 1992 to bring European economies closer together in the lead-up to the euro.

Member States had to meet the following criteria by May 1998. First, each country had to show a reduction in public spending to no more than 3% of its GDP. Second, national debt had to be kept to below 60% of GDP or be seen to be fast approaching this level. Third, inflation should not exceed by more than 1.5% the rate of the three best performing Member States in terms of price stability in the previous year. Fourth, the country's currency must have remained within the normal fluctuations of the European Monetary System for at least two years previously.

Three countries - the United Kingdom, Denmark and Sweden - did not adopt the euro in 1999, although it is possible they might do so at a later date. Greece adopted the euro in 2000.

In January 1999, the euro was launched onto the world's financial markets, allowing banks and stock exchanges to carry out transactions in euro. However, actual notes and coins came into circulation in January 2002. In July 2002, national currencies were withdrawn, leaving the euro as the euro zone's only legal tender.

The adoption of the euro has had beneficial results for the economies of all Member States, bringing in particular, stability, low interest rates and a zero exchange risk. For business, the euro has cut the cost of doing business and simplified cross-border trade. For the consumer the euro has promoted greater competition and a wider choice of goods and services, stable prices and lower interest rates. For the traveller, the euro has made travelling cheaper and easier by eliminating currency exchange charges.