1 Introduction of Euro 2
1.1 What is the Euro? 2
1.2 Countries in the euro area 2
2 Development of Euro 5
3 TRADE EFFECTS OF THE EURO
4. The Welfares Effects of Common Currencies
5 International risk-sharing
6 Macroeconomic
7 Conclusion 12
1 Introduction
The euro has been in existence just long enough to generate sufficient data for a first look at its actual performance, having been introduced in January 1999. This assessment presents eight studies that use post-1999 data to provide a first look at how the euro is actually affecting trade, financial markets, macroeconomic policy-making, and Europe¡¯s economic performance.
1.1 What is the Euro?
The Euro is the single currency used in 12 EU member states. The euro came into being in cashless form on 1 January 1999 when these member states formed an Economic and Monetary Union (EMU) and permanently locked the exchange rates of their currencies against the Euro. Euro notes and coins were put into circulation in these 12 EU states on 1 January 2002 .
1.2 Countries in the euro area
The 12 countries in the euro area are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain and Greece. The United Kingdom (UK) has decided not to participate but has indicated that it may consider joining at a later date.
Euro notes and coins were put into circulation on 1 January 2002. The euro is part of the process of EMU. EMU is provided for in the Maastricht Treaty, which the people of Ireland endorsed by referendum in June 1992. As well as the Euro, EMU has involved the creation of an independent European Central Bank (ECB).
The euro is used also in Andorra, Monaco, San Marino and Vatican City. Several overseas territories o ...