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K. J. Somaiya Institute of Management Studies & Research Vidya Nagar, VidyaVihar (E), Mumbai 400077


The project report in the Area of Specialization Finance is submitted in March 2005 to K. J. Somaiya Institute of Management Studies & Research, Mumbai in partial fulfillment of the requirement for the award of the degree of Master of Management Studies (M.M.S) affiliated to the University of Mumbai.

Submitted to: Prof. Anil Mahajan

Submitted By: Name: Maulesh Buch Roll No: 05


This is to certify that project entitled EVOLUTION & IMPLEMENTATION OF EURO CURRENCY is submitted in March 2005 to K. J. Somaiya Institute of Management Studies & Research by Maulesh Buch in partial fulfillment on the requirements of the awards of the degree of Master of Management Studies (M.M.S) affiliated to the University of Mumbai for the batch of 2003 05.

Prof. Anil Mahajan (Project Guide)

Prof. P. V. Narasimham (Director General)


This is to express my earnest gratitude and extreme joy at being bestowed with an opportunity to get an opportunity to get an interesting and informative project. It is impossible to thank all the people who have helped me in completion of project, but I would avail this opportunity to express my profound gratitude and indebtness to the following people for all the help they have given me.

I am extremely grateful to my project guide and co-coordinator Prof. Anil Mahajan who has given an opportunity to work on such an interesting project. He proved to be a constant source of inspiration to me and provided constructive comments on how to make this project better. Credit also goes to my friends whose constant encouragement let me in good stead. Lastly, I would thank Prof. P. V. Narasimham and all my faculties for providing all explicit and implicit support to me during the course of my project.

Name: Maulesh Buch Roll no: 05.

On January 1, 2002, currency of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain replaced by a single currency Euro The introduction of Euro four decades after the inception of the European Union is a significant step towards European Political Unity. Since 1950s, European Region was gradually moving towards economic cooperation & integration. In1989, Delors report was presented, providing direction by three-stage transition plan to be executed over more than a decade. Plan outlined abolishment of capital movement restriction, establishing various authorized institutions and the changeover. Countries with diverse economic conditions had their own viewpoint and Denmark, Sweden and United Kingdom opted out from joining Euro. Maastricht Treaty laid down economic conditions to be satisfied for participation. These convergence criteria is regarding budget deficit, rate of inflation, interest rate and exchange rate stability. In 1998, European System of Central Banks was formed to implement the changeover. European Central Bank was established and irrevocable fixed exchange rate was set for each national currency. Euro coins and notes in different denomination came into circulation. It was designed with an idea to represent unity along with respect for independent nation. Security and convenience measure was also taken care of. Proper information systems and logistics were put in place to bring awareness about euro and implement the transition.

During January 1999 to December 2001 euro was came into existence for all non-cash transactions on no compulsion, no prohibition basis. Thereafter it became the legal tender and old coins & notes were gradually withdrawn. The currency changed, but because of the established conversion rate, the value remained the same.


Chapter 1. Introduction Chapter 2. The Evolution of Euro Currency Chapter 3. European Countries & Euro Chapter 4. Maastricht Treaty Chapter 5. Setting the Value of the Euro Chapter 6. Euro Coins & Notes Chapter 7. Implementing the Changeover APPENDIX I APPENDIX II APPENDIX III APPENDIX IV APPENDIX V Bibliography & References

1 5 12 19 23 29 36 i ii iii v viii ix


Chapter 1. Introduction

"The introduction of the euro is probably the most important integrating step since the beginning of the unification process. It is certain that the times of individual national efforts regarding employment policies, social and tax policies are definitely over. This will require to finally bury some erroneous ideas of national sovereignty... I am convinced our standing in the world regarding foreign trade and international finance policies will sooner or later force a Common Foreign and Security Policy worthy of its name... National sovereignty in foreign and security policy will soon prove itself to be a product of the imagination." German Chancellor Gerhard Schrder on 'New Foundations for European Integration', The Hague, January 19, 1999.

Introduction In any economy, money performs four important functions as a medium

of exchange, measure of value of goods and services expressed as price, standard of measure or unit of account and store of value. Money largely consists of currency with public and demand deposits in bank. Hence, currency and its value play very critical role in any countries economy and any change therein, especially in the era of globalization, affects nations economic scenario significantly. National currencies are vitally important to the way modern economies operate. They allow us to consistently express the value of an item across borders of countries, oceans, and cultures. Wealth can be easily stored or transported as currency. On January 1, 2002, world economy and history of currencies have seen beginning of new era as twelve of the countries in the European Union replaced their respective currency. Austrian shilling, Belgian franc, Dutch guilder, Finnish Markkaa, French franc, German mark, Greek drachma, Irish pound, Italian lira, Luxembourg franc, Portuguese escudo and Spanish peseta was replaced by a single currency Euro and issued their new euro banknotes and coins. This was mammoth transition as the economic and monetary policies were different in different countries. The implementation of the euro was a remarkable success of Europe's biggest project, the economic and monetary union. The original seed was planted in 1946 when Winston Churchill suggested the creation of the "United States of Europe." The primary goal was to create political harmony in the region through economic cooperation. Then, in 1952, Churchill's suggestion took shape and the European Coal and Steel Community (ECSC) was created. The goal, just as Churchill had intended, was to help prevent military conflict between France and Germany. In


1957, the Treaty of Rome was signed, declaring the goal of creating a common European market. Thereafter European region was constantly moving in the direction of economic cooperation and integration by forming various institutions. After many false starts, the process of creating the Euro got its real start in 1989, when Jacques Delors, president of the European Commission, published the Delors Report. This important report outlined a transition plan that would create a single European currency. European Union (EU), which began as the ECSC with just six countries Germany, France, Italy, Netherlands, Belgium and Luxemburg, has now membership of 25 countries and has population 455 million with around 28% share of the world GDP and 20% share of global trade. Though the US dollar is still favored as a reserve currency, within three years of the launching of Euro, around 17% of the reserves of world banks were in euro. The share of euro in commercial paper outstanding is steadily increasing and the euro has also been used as international bonds and notes market.

Participating Countries


There are currently 12 member states of the European Union utilizing the euro: Belgium Germany Greece Spain France Ireland Italy Luxembourg The Netherlands Austria Portugal Finland

The Evolution of Euro Currency

Chapter 2. The Evolution of Euro Currency

"One basic formula for understanding the Community is this: 'Take five broken empires, add the sixth one later, and make one big neo-colonial empire out of it all.'" Professor Johan Galtung, Norwegian sociologist, "The European Community, a Superpower in the Making", 1973

A Brief History

The Evolution of Euro Currency

As mentioned in the previous chapter Winston Churchill envisioned the creation of the "United States of Europe". His goals were primarily political, in that he hoped a unified government would bring about peace for a continent that had been torn apart by two world wars. Then six west-European countries took Churchill's suggestion and created the European Coal and Steel Community (ECSC). These resources were quite strategic to the power of each country, so a requirement of the ECSC was that each country allows their resources to be controlled by an independent authority. Thereafter, the Treaty of Rome was signed, declaring the goal of creating a common European market. France, Germany, Italy, Belgium, the Netherlands, and Luxembourg signed it. Refer Appendix I for details about a country joining European Union. The Treaty of Rome was ratified in 1958, establishing the European Economic Community (EEC). The goal of the EEC was to reduce trade barriers, streamline economic policies, coordinate transportation and agriculture policies, remove measures restricting free competition, and promote the mobility of labor and capital among member nations. It was very successful, but just as with the ECSC, it served more of a peacemaking role between the European nations than an economic role. At this time, the monetary exchange rate between countries was controlled by the Bretton Woods system, which connected currencies to the U.S. dollar, allowing for only a one percent fluctuation around designated values. This was referred to as the "pegged rate" and was based partly on the gold backing of the

The Evolution of Euro Currency

dollar. This system worked well for 20 years, helping to stabilize exchange rates and restore economic growth in the postwar period. During 1960s, the system began to fail as US balance of payment deficits started mounting, and exchangerate agreements became the prevalent topic among European political and economic leaders. By December 1969, Luxembourg's Prime Minister, Pierre Werner, was asked to write an EC (European Community) report covering the need for a complete monetary union among the European economies. The Werner Report came out in 1970 and specifically brought up the idea of a single European currency as part of a cooperative monetary effort. The report was the first to use the term Economic and Monetary Union. Although this plan seemed promising, it lost momentum when President Nixon's 1971 policy of "benign neglect" ended U.S. backing (by its gold reserves) of the predefined exchange rates against the dollar, collapsing the Bretton Woods system. The dollar-gold link was abandoned in August 1971. After an abortive attempt to salvage the system by means of series of parity realignment, dollar devaluations and widening the bands of permissible variation around the central parities, the system was finally laid to rest, officially in 1978. Other foreign central banks were not willing to support the dollar. The era of floating exchange rates had begun. In 1979, European Monetary System (EMS) was set up. EMS was an arrangement by which most nations of the European Union (EU) linked their currencies to prevent large fluctuations relative to one another. It was organized to stabilize foreign exchange and counter inflation among members. Periodic adjustments raised the values of strong currencies and lowered those of weaker

The Evolution of Euro Currency

ones, but after 1986, changes in national interest rates were used to keep the currencies within a narrow range. In the early 1990s, the European Monetary System was strained by the differing economic policies and conditions of its members, especially the newly reunified Germany, and Britain permanently withdrew from the system. The main components of the EMS were the European Currency Unit (ECU), the exchange rate and intervention mechanism (ERM) and various credit mechanisms. The next move toward a unified European economy came with the 1987 Single European Act. This act called for the systematic removal of barriers and restrictions that hampered trade between European countries. As a result, border checks, tariffs, customs, labor restrictions and other barriers to free trade were dismantled. Refer Path to Euro in Appendix III.

Transition Plan
In 1989, Jacques Delors, president of the European Commission, published the Delors Report, outlining the three-stage transition plan. Stage one began on July 1, 1990, and immediately abolished (at least in principle) all restrictions on the movement of capital between the member states. It also began the identification of issues that needed to be dealt with and the development of a working program to implement the upcoming changes. Stage two began on January 1, 1994, and marked the establishment of the European Monetary Institute (EMI). The EMI was responsible for coordinating the monetary policy and strengthening the cooperation of the central banks, as well as preparing for the establishment of the European System of Central Banks, which included the single monetary policy and single currency. European Monetary

The Evolution of Euro Currency

Institute went into liquidation following the establishment of the ECB on 1 June 1998. In December 1995, the European Heads of State or Government at the European Council meeting in Madrid voted on the name "euro" for the single currency of the European Monetary Union. The European Monetary Institute was created as transitional step in establishing the European Central Bank (ECB) and a common currency. The ECB, which was established in 1998, is responsible for setting a single monetary policy and interest rate for the adopting nations, in conjunction with their national central banks. Accordingly, in 1998, Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain cut their interest rates to a nearly uniformly low level in an effort to promote growth and to prepare the way for a unified currency. Stage three began on January 1, 1999, with the establishment of "irrevocably fixed exchange rates" of the currencies of the current 11 member states. The euro was legally a scriptural currency in the 11 Member States of the euro area during the period from its launch on 1 January 1999 until the introduction of notes and coins on 1 January 2002. During this period, the euro was the official currency of those countries, but could only be used in non-cash transactions such as electronic transfers, credit, etc. At the beginning of 1999, the above mentioned 11 EU members adopted a single currency, the euro, for foreign exchange and electronic payments. (Greece, which did not meet the economic conditions required until 2000, subsequently also adopted the euro.) The introduction of the euro four decades after the beginnings of the European Union was widely regarded as a major step toward European political unity. By creating a

The Evolution of Euro Currency

common economic policy, the nations acted to put a damper on excessive public spending, reduce debt, and make a strong attempt at taming inflation.

The Euro
While the euro was introduced on 1 January 1999, its name was decided at the European Council in Madrid in December 1995. Banknotes and coins in euro were launched on 1 January 2002. Since 28 February 2002, euro notes and coins have been the only legal tender in the euro area. One euro is divided into one hundred cent. The currency code EUR has been registered with the International Organisation for Standardisation (ISO 4217) and is used for business, financial and commercial purposes.

The graphic symbol ()

The European Commission (EC) was given the task of creating the euro symbol as part of its communications work. The design of symbol had to accomplish three things: It had to be easily recognized. It had to be easily written by hand. It had to be pleasing to look at.

The EC had more than 30 designs drawn up. They selected 10 from those and let the public vote, which narrowed those 10 down to two. From there they made their final selection. The design that was selected is based on the Greek letter epsilon, and it resembles the "E" as the first letter of the word "Europe." The two parallel lines through the center of the "C" represent stability. It is registered with the


The Evolution of Euro Currency

International Organisation for Standardisation (ISO 10036) for business, financial and commercial purposes.


European Countries & Euro

Chapter 3. European Countries & Euro

"We already have a federation. The 11, soon to be 12, member States adopting the euro have already given up part of their sovereignty, monetary sovereignty, and formed a monetary union, and that is the first step towards a federation." German Foreign Minister Joschka Fischer, Financial Times, July 7, 2000.


Participating Countries (Eurozone)

European Countries & Euro

The Eurozone or euroarea encompasses those member states of the European Union in which the euro has been adopted as the single currency in accordance with the Treaty and in which a single monetary policy is conducted under the responsibility of the decision-making bodies of the ECB (European Central Bank). The euro area currently comprises Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Refer Appendix II for the countries participated in European Monetary Union. Following are the details of those countries and their citizens viewpoint about Euro.

Austria: Austria is a small European country in terms of gross domestic product,

area, and population. Yet, since the end of World War II, it has achieved a remarkable record of growth by concentrating on manufacturing the products of the second industrial revolution--such as high-quality machine tools, chemicals, and other producer goods--and exporting them largely to the countries of Western Europe. Although Austria has achieved considerable autonomy in many important economic areas, it remains fully engaged in the European and global economic environment. Austria joined European Union in 1994. Austria had voted by a twothirds majority to join the European Union. However, populist support for both the EU and the single currency, has fluctuated. After initial resistance to euro many of Austrians (66%) supported joining the euro and replaced its currency Austrian Schilling (ATS) at 1EUR= 13.7603 ATS.

Belgium: Belgium became a founding member of the European Economic

Community in 1957, and Brussels is home to many key European institutions,


European Countries & Euro

including the European Commission and the European Parliament. As one of the EU's founding members and the self-styled "capital of Europe", there is great support for EMU in Belgium. Belgians are used to the idea of monetary union, having shared a currency with Luxembourg since 1920. The euro's popularity is undisputed, with 70 per cent in favour of EMU, according to a survey in 1999. Belgium Franc (BEF) was replaced at 1 EUR = 40.3399 BEF.

Finland: One of the euro's most ardent supporters, Finland shrugged aside the
reluctance of its Nordic neighbours Denmark and Sweden and signed up for the euro in 1998, three years after it joined the EU. Finland's economy has performed well since the country joined the EU. It has received financial help for its poorer, sparsely-populated regions in the north and east of the country. Finland Markka (FIM) was replaced at 1 EUR = 5.94573 FIM.

France: In the years following the Second World War, France was at the heart of
the intellectual push for a unified Europe, thanks to people such as Jean Monnet and Robert Schumann, who are considered the architects of the European project. In the 1980s, under President Francois Mitterrand, France further strengthened its place at the forefront of the European Union. However, France's contribution to the creation of the euro has not been without hiccups. The French only joined European Monetary Union after a hard-fought referendum campaign in 1992, in which just 51 per cent voted in favour of the single currency project. In the end franc was replaced at 1 EUR = 6.55957 FRF.

Germany: The German government backs a profound shift in political power

within the EU, with general support for some form of European federation. It also backs eastward enlargement. However, there is much wariness about the loss of the solid, strong Deutsche Mark in favour of the euro. For most Germans, the fear of


European Countries & Euro

inflation - and the corresponding love for the stable D-mark they have enjoyed for years - remains deep-seated. The country has gone through several currency reforms and a period of hyperinflation within living memory, and many would rather stick with the reliable D-mark, which for them symbolises the country's post-war success. Deutsche Mark was replaced at 1 EUR = 1.95583 DEM.

Greece: The poorest member of the EU, Greece sees EMU as an essential step
towards achieving its strategic and economic ambitions. In spite of the euro's weakness when Greece entered the euro-zone on January 1 2001, opinion polls showed that some 70 per cent of Greeks were in favour of membership. There is little attachment to the drachma. Europe's second-oldest currency is linked in Greek minds with economic and political backwardness. Greece is leveraging the euro to encourage foreign direct investment with a view to the country becoming a business and transport hub, linking south-east Europe with EU markets. Greece Drachma (GRD) was replaced at 1 EUR = 340.750 GRD.

Ireland: During the 1990s, a rapid increase in foreign direct investment and
generous amounts of EU regional aid helped transform Ireland into the EU's fastest growing economy. The Irish have traditionally been one of the most pro-European nations, unsurprising considering the large amounts of financial assistance they have received from Brussels. Exchange rate for euro was 1 EUR = 0.787564 Ireland Pound (IEP).

Italy: Italy has attracted a great deal of criticism from its European partners over
its public spending and its large debt. On entering the eurozone the Italian economy was the most stretched of all countries by the EU's convergence criteria for membership. By pushing through several reforms, most notably overhauling


European Countries & Euro

public finances, the then centre-left government was able to join the euro. Italian Lira was replaced at 1936.27 per euro.

Luxembourg: The smallest member of the EU was one of the EEC's six
founding nations in 1957. Luxembourg has provided two of the European Commission's nine presidents, Gaston Thorn and Jacques Santer. The Grand Duchy is also known for its pro-European loyalty and a former Luxembourg prime minister, Pierre Werner, was one of the intellectual fathers of European monetary union. The country's government has been a major player in ensuring the swift introduction of the euro. Interestingly, in order to join the euro, Luxembourg had to set up its own central bank. The euro is a project well suited to Luxembourg's traditions as it has been part of a monetary union with Belgium since the 1920s. Luxembourg Franc was replaced at 40.3399 per Euro.

Netherlands: The Netherlands is one of the EU's smaller members, with a

population of 15m, but also one of its most enthusiastic. From the outset it has embraced the euro, and planed a quicker changeover to the currency than any other country, withdrawing the guilder four weeks into 2002. The country which hosted the negotiations for the Maastricht and Amsterdam treaties, has benefited from a weak euro. Netherland Guilder was replaced at 2.20371 per euro.

Portugal: Entry to the euro in brought about a brief upturn for Portugal in 1998
as falling interest rates and currency stability triggered economic regeneration in one of Western Europe's poorest countries. However, initial euphoria gave way to growing gloom as Portugal's economic growth slowed and inflationary pressure persisted, triggering stern warnings from Brussels over excessive public spending. Portuguese Escudo was replaced at 200.482 per euro.


European Countries & Euro

Spain: Spain has moved mountains economically to ensure membership of the

euro. Between 1997 and 2000 annual real output growth averaged more than 4 per cent creating 2m new jobs that have brought the unemployment rate down from 21.5 per cent to 13.6 per cent. Once considered an economic backwater, Spain has seen an unprecedented rise in its phone and internet sectors. Exchange rate was 1 EUR = 166.386 Peseta.

Non-participating EU countries
Denmark, Sweden, and United Kingdom met the criteria of Maastricht Treaty but opted out to participate in Euro. The National Central Banks (NCBs) of Denmark, Sweden and the United Kingdom, have a special status that allows them to conduct their own national monetary policies, but not to take part in deciding and implementing monetary policy for the euro area.

Denmark: Denmark obtained an opt-out of joining the euro after voters initially
rejected the Maastricht Treaty in a referendum in June 1992. A referendum held in September 2000 to determine whether to join the single currency was rejected by 53 to 47 percent. The Danish government announced in January 2002 that a second referendum on the issue will be held, although no date has yet been set. Denmark is a member of the Exchange Rate Mechanism II (ERM II), which means that the Danish krone is linked to the euro, although the exchange rate is not fixed and is pegged within a 2.25% band against the euro.

Sweden: Sweden joined the EU in 1995 with an opt-out on adopting the euro. In
Sptember 2003 a referendum was held in Sweden on whether to adopt the Euro as theie currency and 56% rejected the proposal to join the euro currency.


European Countries & Euro

United Kingdom: UK negotiated an opt-out of joining the euro in the

Maastricht Treaty. The current Labour government is committed to holding a referendum when it determines that the economic conditions for joining are right. In June 2003, Government has stated that it remains committed to promoting eventual membership of the euro to the British people.


Maastricht Treaty

Chapter 4. Maastricht Treaty

"The euro was not just a bankers' decision or a technical decision. It was a decision which completely changed the nature of the nation states. The pillars of the nation state are the sword and the currency, and we changed that. The euro decision changed the concept of the nation state and we have to go beyond that." EU Commission President Romano Prodi, Financial Times interview, April 9, 1999.


Maastricht Treaty Maastricht Treaty on European Union signed on 7 February 1992

(following political agreement at the Maastricht European Council in December 1991) and came into force in November 1993. It established the conditions and the timetable for the introduction of the single European currency. To participate, countries must meet the requirements that were set up in the Maastricht Treaty, drafted in 1991.

Economic Requirements for Participation

In addition to the membership requirements of the EU, countries who wished to participate in the euro and be a part of "Euroland" had to pass some economic tests referred to as convergence criteria:

Public Finances:

The country's annual government budget deficit

cannot exceed 3 percent of gross domestic product (GDP). This addresses the concern of excessive budget deficit. In addition, the total outstanding government debt (the cumulative total of each year's budget deficit) cannot exceed 60 percent of GDP.

Price Stability: In order to encourage more stable prices and to push

down inflation rates, the country's rate of inflation must be within 1.5 percent of the three best performing EU countries. That is, inflation rate should not exceed by more than 1.5 percentage points that of three best performing countries.

Long Term Interest Rates: The average nominal long-term interest

rate must be within 2 percent of the average rate in the three countries with the lowest inflation rates. (Interest rates are measured based on long-term government bonds and/or comparable securities.) That is, long-term interest


Maastricht Treaty rate should not exceed by more than 2 percentage points that of the three best performing countries in terms of price stability.

Exchange Rate Stability: The country's exchange rates must stay

within "normal" fluctuation margins of the European Exchange Rate Mechanism (ERM) without severe tensions or devaluation for at least two years.

The Treaty moreover requires an examination of the compatibility of the countrys national legislation, including the statutes of its national central bank, with the relevant provisions of the Treaty. After much debate over how strictly these requirements must be upheld, it was finally determined that participating countries must show that they are at least "on course" to meet the requirements. Meeting the initial requirements, however, is not a one-time thing. The Stability and Growth Pact, which was drafted in 1996, established an agreement stating that fines would be charged to countries that have excessive deficits. Member states cannot run a budget deficit that is greater than 3.0 percent of the GDP. If they do, they will be charged 0.2 percent of their GDP, plus 0.1 percent of the GDP for every percentage point of deficit above 3.0 percent. The Pact does not automatically impose these fines, however. Countries that are in recession, which is defined as a fall by at least 2.0 percent for four fiscal quarters, may automatically be exempt. A fall by any amount from 0.75 to 2.0 percent requires a vote by the EU to impose the fine.


Stability and Growth Pact

Maastricht Treaty

It consists of secondary EU legislation combined with a political commitment in the form of a European Council Resolution adopted at the Amsterdam summit on 17 June 1997. The Pact is intended as a means of safeguarding sound government finances in order to strengthen the conditions for price stability and for strong sustainable growth conducive to employment creation. More specifically, budgetary positions close to balance or in surplus are required as the medium-term objective for Member States, which would allow them to deal with normal cyclical fluctuations while keeping their government deficit below 3% of GDP.


Setting the Value of the Euro

Chapter 5. Setting the Value of the Euro

"The euro is far more than a medium of exchange... It is part of the identity of a people. It reflects what they have in common now and in the future." European Central Bank Governor Wim Duisenberg, December 31, 1998.


European Currency Unit (ECU)

Setting the Value of the Euro

The ECU was the official accounting unit of the European Union until the end of 1998, and was notably used for the establishment of the EU budget, as the numeraire of the ERM and as a reserve asset for central banks. It was a basket currency made up of the sum of fixed amounts of the 12 national currencies of the Member States of the European Union at the time of the signature of the Maastricht Treaty in February 1992. With the introduction of the euro on 1 January 1999, the ECU ceased to exist, while the initial value of the euro (for example against other currencies, such as the dollar) was defined as being equal to the value of the ECU on 31 December 1998. The final composition of the ECU was frozen on 8 November 1993 following the entry into force of the Treaty of Maastricht, and consisted of the following monetary amounts fixed on 20 September 1989, based on weightings established by the Ecofin Council on 19 June 1989:

Currency Belgian franc Danish kroner German mark Greek drachma Spanish peseta French franc Irish pound Italian lira Luxembourg franc


Weighting in % Fixed amount 7.6 2.45 30.1 0.8 5.3 19.0 1.1 10.15 0.3 3.301 0.1976 0.6242 1.440 6.885 1.332 0.008552 151.8 0.130


Setting the Value of the Euro

Dutch guilder Portuguese escudo British pound


9.4 0.8 13.0

0.2198 1.393 0.08784

Exchange Rate Mechanism (ERM)

Exchange rate and intervention mechanism of the European Monetary System defined the exchange rates of the currencies participating in terms of central rates against the European Currency Unit. These central rates were used to establish a table of bilateral central rates between participating currencies. Exchange rates were allowed to fluctuate within a band around the bilateral central rates; with the normal fluctuation margins corresponding to +/- 2.25% (however, margins were temporarily widened). The central rates could be adjusted, subject to mutual agreement between all countries participating in the ERM. ERM ceased to exist on 1 January 1999, when the euro was introduced, and was replaced by ERM-II.

Exchange Rate Mechanism II (ERM II)

Successor to the Exchange Rate Mechanism of the European Monetary System, ERM II came into existence on 1 January 1999. The principles of the system were agreed at the Amsterdam European Council in June 1997. And notably provide for bilateral links between the euro and each participating currency. The standard fluctuation band amounts to 15% around the central rate, while narrower bands may be agreed on a case-by-case basis. Membership of the mechanism is voluntary, although Member States with derogation are expected to join it. Denmark and Greece participated from 1 January 1999, with the kroner subject to


Setting the Value of the Euro

a narrow band of 2.25%. Since Greece joined the euro, Denmark has been the only member until 28 June 2004, when Estonia, Lithuania and Slovenia joined ERM II with a fluctuation band of 15%.

The Eurosystem comprises the European Central Bank (ECB) and the national central banks of the Member States, which have adopted the euro in accordance with the Treaty. There are currently 12 national central banks in the Eurosystem. The Eurosystem is governed by the Governing Council and the Executive Board of the ECB and has assumed the task of conducting the single monetary policy for the euro area since 1 January 1999. Its primary objective is to maintain price stability. It meets its objectives through: Deciding and implementing monetary policy; Conducting foreign exchange operations; and Operating payment systems.

European System of Central Banks (ESCB)

The European System of Central Banks (ESCB) comprises the ECB and the national central banks of all 15 Member States of the European Union. It includes, in addition to the members of the Eurosystem, the national central banks of the Member States, which have not adopted the euro. The National Central Banks of Member States not participating in the euro area, i.e. Denmark, Sweden and the United Kingdom, have a special status that allows them to conduct their own national monetary policies, but not to take part in deciding and implementing


Setting the Value of the Euro

monetary policy for the euro area. The Governing Council, the Executive Board and the General Council of the ECB govern the ESCB.

European Central Bank (ECB)

The European Central Bank was established on 1 June 1998 and lies at the centre of the Eurosystem and the European System of Central Banks (ESCB). It ensures that the tasks conferred upon the Eurosystem and the ESCB are implemented either by its own activities pursuant to the Statute of the ESCB or through the national central banks. The ECB is situated in Frankfurt, Germany. Decision-making bodies of the ECB comprises of Governing Council, the Executive Board and the General Council. The Governing Council comprises all the members of the Executive Board and the governors of the national central banks of the Member States, which have adopted the euro. The Executive Board comprises the President and the Vice-President of the ECB and four other members appointed by the Heads of State or Government of the Member States, which have adopted the euro. The General Council comprises the President and the Vice-President of the ECB and the governors of all the national central banks of the Member States of the European Union. The ECB implements the monetary policy for the Eurozone by setting interest rates, conducting foreign exchange operations, holding reserve and authorising the issue of euro bank notes. The job of European Central Bank (ECB) was to make sure that the European System of Central Banks (ESCB) implemented the changeover required by the euro statutes and generally carries out its duties. The General Council of the ECB was responsible for setting the conversion rate for the euro for each participating country. Those rates were established in January 1999, and are "irrevocably fixed."


Setting the Value of the Euro

The conversion was based on the existing currency so that the euro is simply an expression of the previous national currency. These rates were determined on 31 December 1998 for 11 national currencies (31 December 2000 for the Greek drachma) by dividing the market value of the euro by the market values of the individual participating currencies. The ECB used guidelines established in a Joint Communiqu that was issued on May 2, 1998, by the ministers of the member states who were adopting the euro. In order not to modify the external value of the European Currency Unit (ECU), they used the bilateral rates of the Exchange Rate Mechanism (ERM) to establish the fixed conversion rate for each national currency. The calculation of the exchange rates followed the regular daily concertation procedure, which used the representative exchange rate for each nation's currency against the U.S. dollar as of December 31, 1998. Refer Appendix V for irrevocable exchange rate of various countries. The National Central Banks of the participating Member States played a key role in the smooth transition to the euro. Their responsibilities have included: Introducing the euro in their respective countries; Managing the changeover from national currencies to the euro; Creating the necessary systems to effectively circulate the euro banknotes and coins; Withdrawing national currencies; and Providing advice about and promoting the use of the euro.


Euro Coins & Notes

Chapter 6. Euro Coins & Notes

"We must now face the difficult task of moving towards a single economy, a single political entity .. For the first time since the fall of the Roman Empire we have the opportunity to unite Europe." EU Commission President Romano Prodi, European Parliament, October 13, 1999.


Euro Coins & Notes

Euro circulation coins (normal and commemorative)

There are currently eight denominations of euro coins in circulation: the 1, 2, 5, 10, 20 and 50 cents and the 1 and 2. One euro is equal to 100 cents. The denominations and technical specifications of the coins are harmonised and they have legal tender status throughout the euro area since 1 January 2002. However, each Member State issues coins with its own national design on one side of each denomination, whilst the other side features a common European motif. In addition to the euroarea member states, Monaco, San Marino and the Vatican City are also entitled to issue limited quantities of euro circulation coins through agreements with the Community. A quality management system has been put in place to ensure that the euro coins remains interchangeable throughout the euro area. They conform to the common standards necessary for use in all vending machines. All eight different denomination coins vary in size and thickness according to their values to promote easier identification and even to facilitate recognition by the blind and the partially sighted. There was a Europe-wide competition for the coin design and Luc Luycx of the Royal Belgium Mint had the winning designs for the side of the coins that is common to all 12 member states. The design features one of three maps of Europe surrounded by the 12 stars representing the Euro member states. The opposite side of the coins has designs specific to each country, also surrounded by the 12 stars. Although each country has its own coin design, each coin is accepted in any member state. The 1 and 2 coins are bicolour/bimetallic coins. The bicolour or bimetallic coins are the one with a core inserted in a ring, the core and the ring being of different colours and different metals or alloys. This is for security reason


Euro Coins & Notes

as it becomes harder to counterfeit such bimetallic and bicolor coin than regular coins.

Euro collector coins

Euro collector coins are not intended for circulation. Therefore, it differs from regular euro coins. According to the conclusions of the Ecofin Council meeting in January 2000, to ensure that Euro collector coins will be readily distinguishable from Euro coins intended for circulation, the coins must bide to the following rules: The face value of collector coins should be different from that of the coins intended for circulation (i.e. Euro coins cannot have a face value equal to the 8 denominations: 1, 2, 5, 10, 20, 50 Euro cent and 1 and 2 Euro) Collector coins should not use images, which are similar to the common sides of the euro coins intended for circulation. Furthermore, as far as possible, the designs used should also be at least slightly different from those of the national sides of circulation coins Out of colour, diameter and thickness, euro collector coins should differ significantly from the coins intended for circulation in two respects Collector coins should not have a shaped edge with fine scallops, or "Spanish flower" The identity of the issuing Member State should be clearly and easily recognizable. Euro collector coins may be sold at or above face value and the approval for the volume of collector coins issue should be sought on an aggregate basis rather than for each individual issue. With respect to collector coins' denominations that


Euro Coins & Notes

may coincide with the low denominations of euro banknotes there does not seem to exist any significant risk of substitution. However, Member States are expected to stand ready to consider any demands by the ECB on this matter. While Euro collector coins will have legal tender status in the issuing Member State, the competent authorities (NCBs, Mints or other institutions) should set up temporary arrangements through which owners of euro collector coins issued in other euro area Member States can receive the face value of those coins while bearing the costs related to this transaction. That is, the legal tender status of these coins is limited to the country of issue.

Euro commemorative coins

These are commemorative variations of euro circulation coins, in the sense that they have a different national side from the standard one, and commemorate a specific event or personality. They comply with the denominations and with the technical specifications of euro circulation coins and has legal tender status throughout the euro area. As these coins must bear one of the common sides, the commemorative feature must appear on the national side so that the common side remains unaffected. The volume of coins and/or the production period of this coin variation are limited. It has been agreed between Member States and the commission that all commemorative coin issues would be limited to a single coin denomination (2).

Euro Bank Notes

There are seven euro bank notes in denomination (5, 10, 20, 50, 100, 200 and 500). Banknotes denominated in euro, circulating in the euro area since


Euro Coins & Notes

1 January 2002. The seven designs are common to all euro area members, where they are the only notes with legal tender. As with the euro coin, notes design was also the result of a contest. Designers were nominated by the national central banks, and the competitors turned out designs for the seven bank notes based on either the theme of "Ages and Styles of Europe" or an abstract modern theme. Robert Kalina of the Oesterreichische Nationalbank won the competition. His designs were selected at the Dublin European Council in December of 1996. He based his designs on the theme of seven important architectural periods in Europe's cultural history. The resulting banknotes are attractive, have a number of security features and are representative of all the Member States involved. On the front of the banknotes, windows and gateways symbolise the spirit of openness and co-operation in Europe. The 12 stars of the European Union appear on each banknote. On the reverse, a bridge from the same architectural period is featured, symbolising the close co-operation and communication within Europe, and between Europe and the world. The seven bank notes are printed in different sizes and shapes for easier identification. The size of the banknotes varies, increasing with the value. The 5 banknote is the smallest and the 500 the largest. Similar to euro coin, different sizes and the bold, contrasting colours with "touch and feel" characteristics will help the blind and the partially sighted to identify the banknotes. These are just two of the four features incorporated into the banknotes after consultation with the European Blind Union. The other two features are: the printing of the values in large, bold figures, and the use of the intaglio printing process for some elements of the banknotes. Intaglio printing leaves the print raised in relief. Such tactile


Euro Coins & Notes

marks are also printed along the edges of the higher-value 200 and 500 banknotes. The other main features of every euro banknote are:

The name of the currency written in both the Latin (EURO) and the Greek (EYP) alphabets

The initials of the European Central Bank in the five linguistic variants BCE, ECB, EZB, EKT, EKP - covering the 11 official languages of the European Community

The symbol indicating copyright protection The signature of President of the European Central Bank The flag of the European Union

Around 14.89 billion euro banknotes and 51.629 billion euro coins was produced throughout the euro area prior to 1 January 2002. Around ten billion banknotes were put into circulation immediately, replacing national banknotes, while the rest were held in reserve to replenish stocks.

What happened to Old Currency Coins?

Coins recycled The old currency coins were send to the countries like China where tey are worth their nickel. China requires that kind of material as raw materials to feed its rapidly growing economy, and it is snapping up the obsolete coins and melting them down for their metal content. The Asian giant, with booming construction and automobile sectors, is scouring the globe for every piece of scrap metal it can lay its hands on - and France is one country that has a ready supply of muchsought-after nickel-containing coins. China's stainless steel demand was increasing


Euro Coins & Notes

and nickel is a key component of the medal as an anti-corrosive additive. It is also very versatile and also finds its way into cars, appliances and kitchenware. Coins devoured Reuters China had been a major buyer of French coins since they were replaced by euros as the country's legal tender almost two years ago. Coins were not auctioned directly. Instead, it was sold to dealers, and some of whom in turn is selling it to smelters and scrap metal traders. The old 50-centime coin, almost 100 percent nickel, is proving particularly popular in China, where it is bought as scrap to supplement tight supplies of the main raw material, refined nickel. The shipments are usually packed 500 to 1,000 tonnes per lot and the stainless steel producers can just put the coins into their furnaces as nickel feed. Even collectors' items have found their way into Chinese furnaces. As per one estimation around 260,000 tonnes of old European coins would be recycled by the end of 2005. 260,000 tonnes of old coins would yield around 150,000 tonnes of copper, 54,000 tonnes of steel and 43,000 tonnes of nickel. Germany, the region's largest coin user, had almost 79,000 tonnes of old marks and pfennig coins. But like most other EU countries, it sold most within 18 months of the euro's launch. France had around 43,000 tonnes of old coins and still retains a large portion of this total.


Implementing the Changeover

Chapter 7. Implementing the Changeover

"Our future begins on January 1 1999. The euro is Europe's key to the 21st century. The era of solo national fiscal and economic policy is over." German Chancellor Gerhard Schrder, December 31, 1998.


Transitional period

Implementing the Changeover

As agreed by the Madrid European Council, three year period between launch of the euro currency on 1 January 1999 and introduction of notes and coins on 1 January 2002, laid down in the changeover scenario. During this transitional period the principle of no compulsion, no prohibition applied, meaning people and businesses were free to carry out (non-cash) transactions in euro, but were not obliged to do so. On January 1, 1999, eleven of the countries in the European Economic and Monetary Union decided to give up their own currencies and adopt the Euro currency: Austria, Belgium, Finland, France, Germany, Ireland, Italy,

Luxembourg, the Netherlands, Portugal, and Spain. Greece followed suit on January 1, 2001. The conversion rates were "irrevocably fixed," and the euro officially "existed". At that point, the euro could be used for non-cash transactions, such as making electronic payments, writing checks, or credit transactions. Even to the extent that in most cases the balances were shown both in the national currency as well as in the converted euro amounts. The currency changed, but because of the established conversion rate, the value remained the same. Refer Implementing Euro in Appendix IV. The speed of the changeover from existing national currencies to the euro varies from country to country depending on their respective national changeover plans. Although, euro currency was introduced on January 1, 2002, some countries had slightly different schedules for the end of circulation of their existing national currency. The schedule for the euro introduction and endings for national currencies:


Implementing the Changeover December 31, 2001 was the last day for electronic payments in the old currencies. December 31, 2001 was the last day that the German mark could be legal tender; however, cash was accepted until February 28, 2002. January 28, 2002 was the last day for the Dutch guilder. February 9, 2002 was the last day for the Irish punt. February 17, 2002 was the last day for the French franc. February 28, 2002 was the last day for all other national currencies, including the Belgian franc, Luxembourg franc, Italian lira, Greek drachma, Finnish markka, Spanish peseta, Portuguese escudo, and Austrian schilling.

Euro bank notes and coins began circulating in the above countries on January 1, 2002. At that time, all transactions in those countries were valued in Euro, and the "old" notes and coins of these countries were gradually withdrawn from circulation. When items were purchased with national currency, the change was given in euros. Exchange of cash was also done in banks. Automated teller machines (ATMs) began distributing only euros on January 1, 2002. During the "dual circulation period," until the final deadlines were reached for changeover, both national currencies and the euro were accepted, but after that point only the euro was acceptable legal tender.

Continuity of contracts
Any contract, signed prior to the date when euro became legal tender, and where monetary value is expressed in old currency is legal and valid. The introduction of the euro did not have the effect of changing or modifying contracts


Implementing the Changeover

and does not provide a legal excuse for trying to do so. Any financial amounts expressed in national currency units in mortgage, insurance or any other contracts was changed into euros at the fixed conversion rate.

Euro introduction (e-day)

The introduction of the euro was a key test of the success of Europe's biggest project, the economic and monetary union. It was the single biggest issue confronting European finance ministers for months, as the new european currency would have to be introduced into circulation simultaneously for all participating countries, on January 1, 2002. How smoothly the changeover would go, and how the currency would fare on the exchange markets, would be critically important for the future of the currency as it would help the rest of the EU countries, who decided not to join the monetary union, to reconsider. Problems of security and logistics were some of the biggest ones. The sheer quantity of notes and coins that would have to be introduced is staggering, providing obvious opportunities for robbers. The confusion of the changeover was also seen as a window of opportunity for counterfeiters and money launderers. European officials were cautiously confident that banks and large companies would be prepared for E-day, but doubts remained about the readiness of small and medium-sized enterprises, and the risk of inflationary price rises in shops. The EU's attempts to gauge the public mood suggested a gradual warming towards the single currency. From spring to autumn 2000 the Eurobarometer poll detected a drop in support for the euro from 58% to 55%, however spring 2001 saw a rebound to 59%. Among the 12 states that would soon be switching currencies, support had risen to 66%. Of these countries, Finland was the only one


Implementing the Changeover

where less than half of the population (49%) supported the euro in spring that year, while Germany, Austria and Portugal came in at less than 60%. The most positive were Italy and Luxembourg (above 80%) followed by Belgium, Greece and Ireland (above 70%).

Information campaign
The time required for the transition to the new currency varied from country to country, depending on how efficient the publicity and teaching campaign had been. The first European planning in 1995, dictated that the new and the old currencies would both circulate at the same time for the first 6 months. However, in 1999 the decision was reduced to just 4 weeks. This change suggested that the majority of financial transactions would be made in Euros by January 15, 2002, a mere 2 weeks after the initial introduction of the currency. To cope with this, the Central European Bank and the national banks in the Euro-zone launched a Europe-wide campaign to inform the public of the new changes. In November 1999, Publicis was chosen to help organize the campaign, with a predicted cost of 80 million euros for 2 years. The objective was to ensure that the general public and professional cash handlers, in both the Eurozone and other countries, were informed about the denominations of euro banknotes and coins, the visual appearance of euro banknotes and coins, the security features and the changeover modalities. These messages were delivered via four main information channels. Press and public relations activities designed to raise awareness of the changeover and to make the public more receptive to the new cash. They


Implementing the Changeover mainly consisted of press conferences and euro events, as well as providing material for the media (press kits, videos, etc.). A Partnership Program, which involved more than 3,000 organisations using Eurosystem information materials on euro banknotes and coins in their communications to employees, customers and suppliers, and which extended the reach and multiplied the impact of this information A mass media campaign on TV and in the press was carried out from autumn 2001 to early 2002. A public information leaflet (200 million copies) and children's poster (7 million copies) in the 11 official languages of the European Union were also distributed during that period in the euro area countries. In addition, the leaflet was translated into 23 other languages. A dedicated website supported other areas of the program, and it allowed the official partners to download materials that they could adapt and reproduce

The smoothness and rapidity of the cash changeover in the euro area in 2001-02 reflects the success of the Euro 2002 Information Campaign (which complemented national campaigns) and the logistics of the changeover.

The Automatic Teller Machines in the 12 country-member states played an important role to the successful transition to the new currency. ATMs would be the first places to supply the European public with Euros, and because of the different time zones across Europe Greece was the first country to receive the new currency.


Implementing the Changeover

Following table shows number of ATMs installed in different countries during transition period: Country Germany Spain France Italy Portugal Netherlands Belgium Austria Greece Finland Ireland Luxembourg Number of ATMs Installed 60,000 44,000 35,000 31,700 8,500 7,000 6,600 5,800 3,897 2,200 1,235 350

The wide difference between the countries is attributed not only to the difference in population figures and the number of banks, but also to the fact that in some states ATMs were installed in super markets, metro stations, highways etc. Although the task of adjusting all these machines to the new currency on time was difficult and time consuming, it is estimated that 85%-90% of all ATMs were able to supply the new currency by the end of the first week of January. In this way, this mammoth transition was implemented by proper execution of information campaign and logistical support backed by well-planned strategy.



The European Union Expansion

Year 1951 1973 1981 1986 1995 2004

Countries Joining Germany, France, Italy, The Netherlands, Belgium and Luxemburg Britain, Denmark, Ireland Greece Portugal, Spain Austria, Finland, Sweden Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia.


European Monetary Union



Path to Euro Year 1948 A Step Forward The Organisation for European Economic Cooperation (OEEC) is set up in Paris. The Congress of Europe (a meeting of delegates from 16 European countries) agree to form the Council of Europe with the aim of establishing closer economic and social ties 1951 The European Coal and Steel Community (ECSC) is established to remove all import duties and quota restrictions on the trade of coal, iron ore, and steel between the member states 1952 The European Defense Community (EDC) Treaty is signed to form a parallel European Political Community (EPC), which was rejected later. 1955 ECSC foreign ministers agree to develop the community by encouraging free trade between member states through the removal of tariffs and quotas. 1958 The treaty of Rome establishes the European Economic Community (EEC). That stipulates the eventual removal of customs duties on trade between member countries. The EEC Treaty sets out allow the free movement of workers, capital and services across borders and to harmonise policies on agriculture and transport. 1960 Austria, Britain, Denmark, Norway, Portugal, Sweden and Switzerland form the European Free Trade Association (EFTA) to promote free trade but without the formal structures of the EEC. 1972 Following the recommendations of the Werner Report, the EEC launches its first attempt at harmonising exchange rates. 1978 European Monetary System (EMS) is created. At the center of the EMS is the European Currency Unit (ECU). iii

1987 Single European Act establishes the goal of a single market by 1992. 1992 Treaty on European Union (TEU), (Maastricht Treaty), is signed. 1994 Establishment of the European Monetary Institute (EMI). 1995 European Council settles on "euro" as name for the single currency. 1998 European Central Bank (ECB) is established in Frankfurt, Germany and European System of Central Banks (ESCB) is formed.


Implementing Euro Year January 1 1999 January 1, 1999 December 31, 2001 January 1, 2001 August 30 2001 European Central Bank releases final details of euro banknote. September 1, 2001 Euro banknotes and coins available to banks in Finland, Germany, Luxembourg and Spain. Belgium, France, Greece, Ireland, Italy and Portugal receives coins only. Sub-frontloading to retailers of banknotes and coins begins in Germany, Luxembourg and large retailers in Spain. Irish and Finnish retailers receive euro coins. September 3, 2001 Austrian banks receive banknotes and coins. September 10, 2001 Sub-frontloading of banknotes to Austrian retailers. October 1, 2001 Greek and Portuguese banks receive banknotes. Large Italian retailers receive euro coins. November 1, 2001 Belgium, Ireland and Italy receive banknotes in banks. Subfrontloading to Greek retailers of coins and Irish retailers receive banknotes only. December 1, 2001 France and the Netherlands (and coins) receive banknotes. Subfrontloading to retailers of banknotes and coins begins in Belgium, France, Greece (banknotes only), Italy (large retailers only), Netherlands (large retailers only) and Portugal. December 14, 2001 France, Ireland and the Netherlands make euro coins available to the public through starter kits. December 15, 2001 Austria, Belgium, Finland, Italy, Luxembourg and Spain release starter kits. Transition period: changeover to the euro by the whole economy. Greece adopts the single currency. A Step Forward The euro becomes the currency for 11 member states.

December 17, 2001 Germany, Greece and Portugal release euro starter kits. January 1, 2002 Euro notes and coins enter in circulation in 12 participating states of the EU. All non-cash transactions will hereafter take place in euros. Dual circulation period begins, in which consumers can still use national currencies but will be given change only in euros. January 28, 2002 Dutch national currency ending as legal tender. February 9, 2002 Irish national currency ending as legal tender. February 17, 2002 French national currency ending as legal tender. February 28, 2002 Belgian, Greek, Spanish, Italian, Luxembourg, Austrian, Portuguese and Finnish national currencies ending as legal tender. German commercial banks exchanging national banknotes and coins for euros until at least this date. Commercial banks in Austria, Finland, Greece and Ireland to decide individual deadlines for currency exchanges. June 30, 2002 Last date commercial banks in France, Luxembourg, Portugal and Spain will exchange national currencies for euros. December 31, 2002 Last date commercial banks in Belgium and the Netherlands will exchange national currencies for euros. Last date Portugal's central bank will exchange national coins for euros. 2003 and beyond The 12 Eurozone Central Banks have set various deadlines for exchanging old national currencies: Germany, Ireland, Spain and Austria, have said they will exchange old notes and coins indefinitely Belgium and Luxembourg, say they will exchange old notes indefinitely but set a deadline of the end of 2004 for coins. Italy and Finland have each set a deadline of 10 years for notes and coins. Greece and France have each set a deadline of 10 years for notes; Greece will exchange coins for two years, France for


three years. The Netherlands has set deadlines of January 1, 2007 for coins and January 1, 2032 for notes. Portugal will exchange notes for 20 years (the deadline for coins is December 31, 2002).



Irrevocable Fixed Exchange Rates in the Euro

Belgian Franc

Deutsche Mark

Greek Drachma

Spanish Peseta


French Franc

Irish Pound

Italian Lira

Luxembourg Franc

Dutch Guilder

Austrian Schilling

Portuguese Escudo

Finnish Markkaa


Bibliography & References

European Central Bank - European Union & Euro Article by Dr. B. Bhatia, Synergy January 2005 Issue, SIMSR Magazine.