History of the Euro Currency and the Eurozone

this is Europe’s most significant

this is Europe’s most significant monetary reform since the Roman Empire

monetary reform since the Roman Empire

monetary reform since the Roman Empire welcome to watchmojo.com and today we’ll

welcome to watchmojo.com and today we’ll

welcome to watchmojo.com and today we’ll be learning more about the history of

be learning more about the history of

be learning more about the history of the euro the euro is the form of

the euro the euro is the form of

the euro the euro is the form of currency used by the ever-evolving

currency used by the ever-evolving

currency used by the ever-evolving eurozone countries the eurozone consists

eurozone countries the eurozone consists

eurozone countries the eurozone consists of countries from the European Union

of countries from the European Union

of countries from the European Union that adopted the euro as their common

that adopted the euro as their common

that adopted the euro as their common currency and only legal tender while the

currency and only legal tender while the

currency and only legal tender while the euro was officially introduced on

euro was officially introduced on

euro was officially introduced on January 1st 1999 the idea behind this

January 1st 1999 the idea behind this

January 1st 1999 the idea behind this common currency dated back decades

common currency dated back decades

common currency dated back decades historically Europe was one of the

historically Europe was one of the

historically Europe was one of the world’s largest trading regions but that

world’s largest trading regions but that

world’s largest trading regions but that trade was complicated by fragmented

trade was complicated by fragmented

trade was complicated by fragmented currencies as early as 1929 the League

currencies as early as 1929 the League

currencies as early as 1929 the League of Nations contemplated in economic and

of Nations contemplated in economic and

of Nations contemplated in economic and monetary union

monetary union

monetary union however World War two derailed those

however World War two derailed those

however World War two derailed those ambitions during the cold war efforts to

ambitions during the cold war efforts to

ambitions during the cold war efforts to strengthen ties between non communist

strengthen ties between non communist

strengthen ties between non communist nations were made 1951 s Paris treaty

nations were made 1951 s Paris treaty

nations were made 1951 s Paris treaty linked Belgium France West Germany Italy

linked Belgium France West Germany Italy

linked Belgium France West Germany Italy Luxembourg and the Netherlands and

Luxembourg and the Netherlands and

Luxembourg and the Netherlands and created the European Coal and Steel

created the European Coal and Steel

created the European Coal and Steel community those six countries signed the

community those six countries signed the

community those six countries signed the Treaty of Rome in 1958 to found the

Treaty of Rome in 1958 to found the

Treaty of Rome in 1958 to found the European Economic Community which was a

European Economic Community which was a

European Economic Community which was a precursor to the European Union the idea

precursor to the European Union the idea

precursor to the European Union the idea of Economic Cooperation eventually

of Economic Cooperation eventually

of Economic Cooperation eventually resurfaced a report published in 1970

resurfaced a report published in 1970

resurfaced a report published in 1970 suggested the centralization of

suggested the centralization of

suggested the centralization of financial policies in Europe this set

financial policies in Europe this set

financial policies in Europe this set the wheels in motion for a single

the wheels in motion for a single

the wheels in motion for a single European currency and central bank in

European currency and central bank in

European currency and central bank in 1979 most of the EEC nations instituted

1979 most of the EEC nations instituted

1979 most of the EEC nations instituted the European monetary system to

the European monetary system to

the European monetary system to stabilize exchange rates and offset

stabilize exchange rates and offset

stabilize exchange rates and offset inflation of the newly created European

inflation of the newly created European

inflation of the newly created European currency unit or ECU much of the 1980s

currency unit or ECU much of the 1980s

currency unit or ECU much of the 1980s was spent realistically planning the

was spent realistically planning the

was spent realistically planning the establishment of the economic and

establishment of the economic and

establishment of the economic and monetary union 1986 is single European

monetary union 1986 is single European

monetary union 1986 is single European act augmented cooperation between the

act augmented cooperation between the

act augmented cooperation between the EEC nations in terms of politics and

EEC nations in terms of politics and

EEC nations in terms of politics and economics the bold Maastricht treaty was

economics the bold Maastricht treaty was

economics the bold Maastricht treaty was signed February 7 1992 and it was this

signed February 7 1992 and it was this

signed February 7 1992 and it was this Accord that created the European Union

Accord that created the European Union

Accord that created the European Union it also established 1999 as a deadline

it also established 1999 as a deadline

it also established 1999 as a deadline for the creation of a

for the creation of a

for the creation of a and currency and set the basis for the

and currency and set the basis for the

and currency and set the basis for the shared financial strategy countries were

shared financial strategy countries were

shared financial strategy countries were required to meet stringent criteria in

required to meet stringent criteria in

required to meet stringent criteria in order to sign the agreement low budget

order to sign the agreement low budget

order to sign the agreement low budget deficits and debt ratios were just some

deficits and debt ratios were just some

deficits and debt ratios were just some of the required measures the groundwork

of the required measures the groundwork

of the required measures the groundwork for the euro was laid during the 1990s

for the euro was laid during the 1990s

for the euro was laid during the 1990s the European monetary Institute replaced

the European monetary Institute replaced

the European monetary Institute replaced the EMC F in 1994 and became the

the EMC F in 1994 and became the

the EMC F in 1994 and became the prototype for the European Central Bank

prototype for the European Central Bank

prototype for the European Central Bank the currencies named euro was chosen in

the currencies named euro was chosen in

the currencies named euro was chosen in December 1995 as many countries endorsed

December 1995 as many countries endorsed

December 1995 as many countries endorsed it to their populations the United

it to their populations the United

it to their populations the United Kingdom Denmark and Sweden eventually

Kingdom Denmark and Sweden eventually

Kingdom Denmark and Sweden eventually decided to opt out of its use and kept

decided to opt out of its use and kept

decided to opt out of its use and kept their own currencies each participating

their own currencies each participating

their own currencies each participating nations currency was converted to the

nations currency was converted to the

nations currency was converted to the Euro via triangulation this negated

Euro via triangulation this negated

Euro via triangulation this negated discrepancies between the various

discrepancies between the various

discrepancies between the various countries standards for rounding and

countries standards for rounding and

countries standards for rounding and important numbers it was finally

important numbers it was finally

important numbers it was finally determined in December 1998 that one ECU

determined in December 1998 that one ECU

determined in December 1998 that one ECU would equal one euro

would equal one euro

would equal one euro the euro was first circulated on January

the euro was first circulated on January

the euro was first circulated on January 1st 1999 in non-cash transactions and

1st 1999 in non-cash transactions and

1st 1999 in non-cash transactions and accounting for example traveler’s checks

accounting for example traveler’s checks

accounting for example traveler’s checks stocks and mortgages were all available

stocks and mortgages were all available

stocks and mortgages were all available in Euros the national currencies of the

in Euros the national currencies of the

in Euros the national currencies of the eurozone countries were then

eurozone countries were then

eurozone countries were then discontinued and established at fixed

discontinued and established at fixed

discontinued and established at fixed rates with each other the changeover to

rates with each other the changeover to

rates with each other the changeover to the euro was a three-year transition

the euro was a three-year transition

the euro was a three-year transition paper money and coins from the old

paper money and coins from the old

paper money and coins from the old system was accepted until 2002 at which

system was accepted until 2002 at which

system was accepted until 2002 at which point enough euro notes and coins had

point enough euro notes and coins had

point enough euro notes and coins had been produced after its launch the Euro

been produced after its launch the Euro

been produced after its launch the Euro performed better than expected

performed better than expected

performed better than expected it opened trading on January 5th at one

it opened trading on January 5th at one

it opened trading on January 5th at one dollar 19 cents u.s. dealers were amazed

dollar 19 cents u.s. dealers were amazed

dollar 19 cents u.s. dealers were amazed by how quickly it replaced the national

by how quickly it replaced the national

by how quickly it replaced the national currencies for example the mighty

currencies for example the mighty

currencies for example the mighty deutsche mark was predicted to trade in

deutsche mark was predicted to trade in

deutsche mark was predicted to trade in parallel but it disappeared immediately

parallel but it disappeared immediately

parallel but it disappeared immediately following the introduction of this

following the introduction of this

following the introduction of this currency the eurozone expanded and

currency the eurozone expanded and

currency the eurozone expanded and changed significantly Greece qualified

changed significantly Greece qualified

changed significantly Greece qualified for membership in 2001 and more nations

for membership in 2001 and more nations

for membership in 2001 and more nations joined in the years that followed as the

joined in the years that followed as the

joined in the years that followed as the world experienced a financial crisis in

world experienced a financial crisis in

world experienced a financial crisis in 2007-2008 so did the eurozone problems

2007-2008 so did the eurozone problems

2007-2008 so did the eurozone problems in Europe stemmed from the strict

in Europe stemmed from the strict

in Europe stemmed from the strict guidelines member countries were

guidelines member countries were

guidelines member countries were expected to adhere to and from the

expected to adhere to and from the

expected to adhere to and from the over-optimistic idea that the work

over-optimistic idea that the work

over-optimistic idea that the work ethics and viewpoints on debt of these

ethics and viewpoints on debt of these

ethics and viewpoints on debt of these countries would converge over time aside

countries would converge over time aside

countries would converge over time aside from strength

from strength

from strength ties between eurozone countries the Euro

ties between eurozone countries the Euro

ties between eurozone countries the Euro helped increase tourism within that area

helped increase tourism within that area

helped increase tourism within that area time will tell if this currency reform

time will tell if this currency reform

time will tell if this currency reform is a lasting solution