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{{Short description|Currency of the European Union}}
{{hatnote group|
{{about|the currency}}
{{redirect|EUR}}
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{{Good article}}
{{Use British English|date=March 2013}}
{{Use dmy dates|date=March 2021}}
{{Infobox currency
| name = Euro
| local_name = <small>{{nobold|1=see also [[Language and the euro|''euro'' in various languages]]}}</small>
| image_1        = Euro banknotes, Europa series.png
| image_width_1  = 175px
| image_title_1  = [[Euro banknotes]]
| image_2        = Reverso 1 euro.jpg
| image_width_2  = 125px
| image_title_2  = 1&nbsp;euro coin
| iso_code       = EUR
| subunit_name_1 = [[1 euro cent coin|euro cent]]
| unit   = euro 
| plural = Varies, see [[language and the euro]]
| symbol = [[Euro sign|€]]
| symbol_subunit_1 = c
| nickname = The single currency{{efn|1=Official documents and legislation refer to the euro as "the single currency".<ref>{{cite web|url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:31997R1103:EN:HTML |title=Council Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions relating to the introduction of the euro |access-date=1 April 2009 |date=19 June 1997 |work=Official Journal L 162, 19&nbsp;June 1997 P. 0001&nbsp;– 0003 |publisher=European Communities}}</ref>}}
| frequently_used_banknotes = [[5 euro note|€5]], [[10 euro note|€10]], [[20 euro note|€20]], [[50 euro note|€50]], [[100 euro note|€100]], [[200 euro note|€200]]<ref name="Circulation_report">{{cite web |url=http://sdw.ecb.europa.eu/reports.do?node=1000004111 |title=ECB Statistical Data Warehouse, Reports>ECB/Eurosystem policy>Banknotes and coins statistics>1.Euro banknotes>1.1 Quantities |publisher=European Central Bank}}</ref>
| rarely_used_banknotes = [[500 euro note|€500]]<ref name="Circulation_report"/>
| frequently_used_coins = [[1 euro cent coin|1c]], [[2 euro cent coin|2c]], [[5 euro cent coin|5c]], [[10 euro cent coin|10c]], [[20 euro cent coin|20c]], [[50 euro cent coin|50c]], [[1 euro coin|€1]], [[2 euro coin|€2]]
| rarely_used_coins = [[1 euro cent coin|1c]], [[2 euro cent coin|2c]] (Belgium, Finland, Ireland, Italy, Netherlands, Slovakia<ref>{{cite web|first1=Alistair|last1=Walsh|access-date=2019-11-04|title=Italy to stop producing 1- and 2-cent coins |url=https://www.dw.com/en/italy-to-stop-producing-1-and-2-cent-coins/a-39020206|date=29 May 2017|publisher=[[Deutsche Welle]]}}</ref><ref>{{cite web|first1=|last1=|access-date=17 December 2023|title=Po 1. júli 2022 budú končiť na Slovensku jedno a dvojcentové mince |url=https://www.bystricoviny.sk/spravy/po-1-juli-2022-budu-koncit-na-slovensku-jedno-a-dvojcentove-mince/|date=29 May 2017|website=bystricoviny.sk|language=sk}}</ref>)
| subunit_ratio_1 = {{frac|100}}
| subunit_inline_note_1 = ([[Language and the euro|Name varies by language]])
| plural_subunit_1 = ([[Language and the euro|Varies by language]])
| banknote_article = euro banknotes
| coin_article = euro coins
| using_countries = primary: [[#Eurozone_members|§&nbsp;members of Eurozone]] (20),<br/>also: [[#Other users|§&nbsp;other users]]
| date_of_introduction = {{start date and age|1999|1|1|df=y}}
| replaced_currency = [[European Currency Unit]]
| issuing_authority = [[European Central Bank]]
| issuing_authority_website = {{URL|https://www.ecb.europa.eu}}
| printer = see {{section link|Euro|Banknote printing|nopage=y}}
| mint = [[List of euro mints|List of mints]]
| inflation_rate = 1.7% (September 2024)<ref>{{cite web | url=https://www.ecb.europa.eu/stats/macroeconomic_and_sectoral/hicp/html/index.en.html | title=Inflation and consumer prices}}</ref>
| pegged_by = see {{section link||Pegged currencies}}
| inflation_source_date = [https://ec.europa.eu/eurostat/statistics-explained/index.php/Inflation_in_the_euro_area ec.europa.eu]
| inflation_method = [[Harmonised Index of Consumer Prices|HICP]]
}}

[[File:Euro Monetary Policy.webp|thumb|299px|right|Euro [[Monetary policy]]
{{legend|#0076BA|Euro Zone inflation year/year}}
{{legend-line|#FFD932 solid 3px|M3 money supply increases}}
{{legend-line|#EE220C solid 3px|Marginal Lending Facility}}
{{legend-line|#970E53 solid 3px|Main Refinancing Operations}}
{{legend-line|#F27200 solid 3px|Deposit Facility Rate}}
{{legend-line|#FF95CA solid 3px|[[Euribor]]}}
]]

The '''euro''' ([[currency symbol|symbol]]: '''[[euro sign|€]]'''; [[ISO 4217|currency code]]: '''EUR''') is the official [[currency]] of 20 of the {{EUnum}} [[Member state of the European Union|member states]] of the [[European Union]]. This group of states is officially known as the euro area or, more commonly, the [[eurozone]]. The euro is divided into 100 [[1 euro cent coin|euro cents]].<ref name="EC Euro Area">{{cite web |url=http://ec.europa.eu/economy_finance/euro/index_en.htm |title=The euro |access-date=2 January 2019 |work=[[European Commission]] website}}</ref><ref name="EC Euro1 euro cent coin Area 2">{{cite web |access-date=2019-01-02 |title=What is the euro area? |url=https://ec.europa.eu/info/business-economy-euro/euro-area/what-euro-area_en |website=European Commission website}}</ref>

The currency is also used officially by the [[institutions of the European Union]], by [[International status and usage of the euro|four European microstates]] that are not EU members,<ref name="EC Euro1 euro cent coin Area 2" /> the [[British Overseas Territory]] of [[Akrotiri and Dhekelia]], as well as unilaterally by [[Montenegro]] and [[Kosovo]]. Outside Europe, a number of [[special territories of EU members]] also use the euro as their currency. Additionally, over 200&nbsp;million people worldwide use [[currencies pegged to the euro]].

The euro is the second-largest [[reserve currency]] as well as the second-most traded currency in the world after the [[United States dollar]].<ref>{{cite web|title=IMF Data – Currency Composition of Official Foreign Exchange Reserve – At a Glance|publisher=International Monetary Fund|url=http://data.imf.org/?sk=E6A5F467-C14B-4AA8-9F6D-5A09EC4E62A4|date=23 December 2022|access-date=11 January 2023}}</ref><ref>{{cite web |title=Foreign exchange turnover in April 2013: preliminary global results |url=http://www.bis.org/publ/rpfx13fx.pdf |publisher=Bank for International Settlements |access-date=7 February 2015}}</ref><ref>{{cite web|url=http://www.bis.org/publ/rpfxf07t.pdf |title=Triennial Central Bank Survey 2007 |publisher=BIS |date=19 December 2007 |access-date=25 July 2009}}</ref><ref>{{cite web |url=http://mpra.ub.uni-muenchen.de/14350/1/MPRA_paper_14350.pdf |last1=Aristovnik |first1=Aleksander |last2=Čeč |first2=Tanja |title=Compositional Analysis of Foreign Currency Reserves in the 1999–2007 Period. The Euro vs. The Dollar As Leading Reserve Currency|publisher=Munich Personal RePEc Archive, Paper No. 14350 |date=30 March 2010 |access-date=27 December 2010}}</ref><ref>{{cite news |last=Boesler |first=Matthew |title=There Are Only Two Real Threats to the US Dollar's Status As The International Reserve Currency |url=http://www.businessinsider.com/dollar-as-international-reserve-currency-2013-11 |access-date=8 December 2013 |newspaper=Business Insider |date=11 November 2013}}</ref> {{As of|2019|12|post=,}} with more than €1.3&nbsp;trillion in circulation, the euro has one of the highest combined values of banknotes and coins in circulation in the world.<ref>{{cite web |url=http://sdw.ecb.europa.eu/reports.do?node=1000004112 |title=1.2 Euro banknotes, values |access-date=23 January 2020 |publisher=European Central Bank Statistical Data Warehouse|date=14 January 2020}}</ref><ref>{{cite web|url=http://sdw.ecb.europa.eu/reports.do?node=1000004114|title=2.2 Euro coins, values|access-date=23 January 2020 |publisher=European Central Bank Statistical Data Warehouse|date=14 January 2020}}</ref>

The name ''euro'' was officially adopted on 16 December 1995 in [[Madrid]].<ref name="madrid1995">{{cite web|url=http://www.europarl.europa.eu/summits/mad1_en.htm |title=Madrid European Council (12/95): Conclusions |publisher=European Parliament |access-date=14 February 2009}}</ref> The euro was introduced to world financial markets as an [[unit of account|accounting currency]] on 1 January 1999, replacing the former [[European Currency Unit]] (ECU) at a ratio of 1:1 (US$1.1743 at the time). Physical euro coins and banknotes entered into circulation on 1 January 2002, making it the day-to-day operating currency of its original members, and by March 2002 it had completely replaced the former currencies.<ref>{{cite web| url = http://www.ecb.int/euro/changeover/2002/html/index.en.html| title = Initial changeover (2002)| publisher=European Central Bank| access-date =5 March 2011}}</ref>

Between December 1999 and December 2002, the euro traded below the US dollar, but has since traded near parity with or above the US dollar, peaking at US$1.60 on 18 July 2008 and since then returning near to its original issue rate. On 13 July 2022, the two currencies hit parity for the first time in nearly two decades due in part to the [[Economic impact of the 2022 Russian invasion of Ukraine|2022 Russian invasion of Ukraine]].<ref name="NYTimes-2022">{{Cite news |date=2022-07-12 |title=Euro Falls Near Parity With Dollar, a Threshold Watched Closely by Investors |work=The New York Times |url=https://www.nytimes.com/2022/07/12/business/euro-dollar-parity.html |access-date=2022-07-13 |issn=0362-4331}}</ref> Then, in September 2022, the US dollar again had a face value higher than the Euro, at around US dollar 0.95 per euro.<ref>{{Cite news |date=2022-09-23 |title=Euro fällt zum US-Dollar auf 20-Jahrestief |url=https://www.spiegel.de/wirtschaft/euro-faellt-zum-us-dollar-auf-20-jahrestief-a-327dab06-b9ed-40bf-9b48-502c9dde1607 |access-date=2024-07-10 |work=Der Spiegel |language=de |issn=2195-1349}}</ref><ref>{{Cite web |title=Euro (EUR) To US Dollar (USD) Exchange Rate History for 2022 |url=https://www.exchange-rates.org/exchange-rate-history/eur-usd-2022 |access-date=2024-07-10 |website=www.exchange-rates.org |language=en}}</ref>

==Characteristics==
===Administration===
[[File:European Central Bank - building under construction - Frankfurt - Germany - 13.jpg|thumb|The [[Seat of the European Central Bank|European Central Bank seat]] in [[Frankfurt am Main]]]]
{{Main|European Central Bank|Maastricht Treaty|Eurogroup}}

The euro is managed and administered by the [[European Central Bank]] (ECB, [[Frankfurt am Main]]) and the [[Eurosystem]], composed of the [[central bank]]s of the eurozone countries. As an independent central bank, the ECB has sole authority to set [[monetary policy]]. The Eurosystem participates in the printing, minting and distribution of [[euro banknotes]] and [[euro coins|coins]] in all member states, and the operation of the eurozone payment systems.

The 1992 [[Maastricht Treaty]] obliges most EU member states to adopt the euro upon meeting certain monetary and budgetary [[Euro convergence criteria|convergence criteria]], although not all participating states have done so. [[Denmark]] has negotiated exemptions,<ref>{{cite web|title=The Euro |publisher=European Commission|url=http://ec.europa.eu/economy_finance/euro/index_en.htm |access-date=29 January 2009}}</ref> while Sweden (which joined the EU in 1995, after the Maastricht Treaty was signed) turned down the euro in a [[2003 Swedish euro referendum|2003 non-binding referendum]], and has circumvented the obligation to adopt the euro by not meeting the monetary and budgetary requirements. All nations that have joined the EU since 1993 have pledged to adopt the euro in due course. The Maastricht Treaty was amended by the 2001 [[Treaty of Nice]],<ref>{{cite web |last1=Nice |first1=Treaty of |title=Treaty of Nice |url=https://www.europarl.europa.eu/about-parliament/en/in-the-past/the-parliament-and-the-treaties/treaty-of-nice |website=About Parliament |publisher= European Parliament |access-date=7 May 2021}}</ref> which closed the gaps and loopholes in the Maastricht and Rome Treaties.

==Countries that use the euro==
{{Further|Euro#Direct and indirect usage}}

===Eurozone members===
{{main|Eurozone}}
The 20 participating members are<br /> 
{{div col|colwidth=10em}}
* {{Flagcountry|Austria}}
* {{Flagcountry|Belgium}}
* {{Flagcountry|Croatia}}
* {{Flagcountry|Cyprus}}{{efn|[[Northern Cyprus]] uses [[Turkish lira]].}}
* {{Flagcountry|Estonia}}
* {{Flagcountry|Finland}}
* {{Flagcountry|France}}{{efn|Including outermost regions of [[French Guiana]], [[Guadeloupe]], [[Martinique]], [[Mayotte]], [[Réunion]], [[Saint Barthélemy]], [[Collectivity of Saint Martin|Saint Martin]], and [[Saint Pierre and Miquelon]].}}
* {{Flagcountry|Germany}}
* {{Flagcountry|Greece}}
* {{Flagcountry|Republic of Ireland|Ireland}}
* {{Flagcountry|Italy}}
* {{Flagcountry|Latvia}}
* {{Flagcountry|Lithuania}}
* {{Flagcountry|Luxembourg}}
* {{Flagcountry|Malta}}
* {{Flagcountry|Netherlands}}{{efn|Only the European part of the country is part of the European Union and uses the euro. The [[Caribbean Netherlands]] introduced the [[United States dollar]] in 2011 following the dissolution of the [[Netherlands Antilles]] (which used the [[Netherlands Antillean guilder]]). [[Curaçao]], [[Sint Maarten]] and [[Aruba]] have their own currencies, which are pegged to the dollar.}}
* {{Flagcountry|Portugal}}
* {{Flagcountry|Slovakia}}
* {{Flagcountry|Slovenia}}
* {{Flagcountry|Spain}}
{{div col end}}

===[[Special territories of members of the European Economic Area]]===
{{div col|colwidth=40em}}
'''[[Special territories of members of the European Economic Area#Outermost Regions|EU Outermost Regions]]:'''
{{colbegin|colwidth=15em}}
*{{Flagcountry|France}}
**{{Flagcountry|French Guiana}}
**{{Flagcountry|Guadeloupe}}
**{{flagicon image|Flag-of-Martinique.svg|size=23px}} [[Martinique]] 
**{{Flagcountry|Saint Martin}}
**{{Flagcountry|Mayotte}}
**{{Flagcountry|Réunion}}
*{{Flagcountry|Portugal}}
**{{Flagcountry|Azores}}
**{{Flagcountry|Madeira}}
*{{Flagcountry|Spain}}
**{{Flagcountry|Canary Islands}}
{{colend}}

'''[[Special territories of members of the European Economic Area#Overseas countries and territories|Overseas Territories]]:'''
*{{Flagcountry|France}}
**{{Flagcountry|French Southern and Antarctic Lands}}
**{{flagicon|Saint Barthélemy|local}} [[Saint Barthélemy]]
**{{flagicon|Saint Pierre and Miquelon|local}} [[Saint Pierre and Miquelon]]<ref>{{cite web |url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:1999:030:0029:0030:EN:PDF |title=By agreement of the EU Council |access-date=30 May 2010}}</ref>
{{div col end}}

'''[[Special territories of members of the European Economic Area#Special cases|Special Autonomous Territories]]:'''
* {{Flagcountry|Finland}}
**{{Flagcountry|Åland}}
* {{Flagcountry|Greece}}
**{{Flagicon image|Flag of the Greek Orthodox Church.svg}} [[Monastic community of Mount Athos|Mount Athos]]
* {{Flagcountry|Spain}}
**{{Flagcountry|Ceuta}}
**{{Flagcountry|Melilla}}

===Other users===
'''Microstates with a monetary agreement:'''
{{div col|colwidth=20em}}
* {{Flagcountry|Andorra}}<ref>{{cite journal |url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2011:369:0001:0013:EN:PDF |title=Monetary Agreement between the European Union and the Principality of Andorra |date=17 December 2011 |access-date=2012-09-08 |journal=[[Official Journal of the European Union]] |archive-date=10 May 2013 |archive-url=https://web.archive.org/web/20130510123910/http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2011:369:0001:0013:EN:PDF |url-status=dead }}</ref>
* {{Flagcountry|Monaco}}<ref>{{cite web |url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2002:142:0059:0073:EN:PDF |title=By monetary agreement between France (acting for the EC) and Monaco |access-date=30 May 2010}}</ref>
* {{Flagcountry|San Marino}}<ref>{{cite web |url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2001:209:0001:0004:EN:PDF |title=By monetary agreement between Italy (acting for the EC) and San Marino |access-date=30 May 2010}}</ref>
* {{Flagcountry|Vatican City}}<ref>{{cite web |url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2001:299:0001:0004:EN:PDF |title=By monetary agreement between Italy (acting for the EC) and Vatican City |access-date=30 May 2010}}</ref>
{{div col end}}

'''[[British Overseas Territory]]:''' 
{{div col|colwidth=20em}}
* {{Flagcountry|Akrotiri and Dhekelia}}<ref>{{cite news |last=Theodoulou |first=Michael |date=27 December 2007 |url=http://www.timesonline.co.uk/tol/news/world/europe/article3097521.ece |url-status=dead |archive-url=https://web.archive.org/web/20110510204604/http://www.timesonline.co.uk/tol/news/world/europe/article3097521.ece |title=Euro reaches field that is for ever England |work=The Times |access-date= 4 January 2008 |archive-date=10 May 2011}}</ref>
{{div col end}}

'''Unilateral adopters:''' 
{{div col|colwidth=20em}}
* {{Flagcountry|Kosovo}}<ref>{{cite web |url=http://www.unmikonline.org/regulations/admdirect/1999/089%20Final%20%20ADE%201999-02.htm |title=By UNMIK administration direction 1999/2 |publisher=Unmikonline.org |access-date=30 May 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110607234444/http://www.unmikonline.org/regulations/admdirect/1999/089%20Final%20%20ADE%201999-02.htm |archive-date=7 June 2011}}</ref>
* {{Flagcountry|Montenegro}}{{efn|See [[Montenegro and the euro]].}}
{{div col end}}

==EU members not using the euro ==
{{main|Enlargement of the eurozone}}
{{Anchor|EUnoEZ}}

=== Committed to adopt the euro <span class="anchor" id="Obliged to adopt the euro"></span> ===
{{See also|Bulgaria and the euro|Czech Republic and the euro|Hungary and the euro|Poland and the euro|Romania and the euro|Sweden and the euro}}
The following [[European Union|EU]] member states committed themselves in their respective [[Treaty of Accession]] to adopt the euro. However they do not have a deadline to do so and can delay the process by deliberately not complying with the convergence criteria (such as by not meeting the convergence criteria to join ERM II). Bulgaria and Romania are actively working to adopt the euro, while the remaining states do not have a migration plan in progress.

* {{Flagcountry|Bulgaria}}: The Bulgarian government aims to replace the Bulgarian lev with the euro by 2026.<ref>{{Cite web |title=Bulgaria passes law to adopt the euro |url=https://cms-lawnow.com/en/ealerts/2024/08/bulgaria-passes-law-to-adopt-the-euro |access-date=6 September 2024 |website=CMS Law-Now|date=6 September 2024}}</ref><ref>{{Cite news |title=Парламентът прие решение за ускоряване на процеса по приемане на еврото |url=https://bntnews.bg/news/parlamentat-prie-reshenie-za-uskoryavane-na-procesa-po-priemane-na-evroto-1287072news.html}}</ref> In November 2023, Bulgarian euro coin design has been revealed and approved by the [[Bulgarian National Bank]].<ref>{{Cite web |title=The design of future Bulgarian euro coins has been approved |url=https://bnr.bg/en/post/101909237/the-design-of-future-bulgarian-euro-coins-has-been-approved |access-date=27 January 2024 |website=Radio Bulgaria}}</ref>
* {{Flagcountry|Czechia}}
* {{Flagcountry|Hungary}}
* {{Flagcountry|Poland}}
* {{Flagcountry|Romania}}: Romania's government is looking to adopt the euro by 2029.<ref>{{Cite web |title=Bulgaria and Romania fail economic tests to join euro |url=https://www.ft.com/content/c38b1284-5bb7-42c0-a1cb-68a9aa1bb718 |access-date=26 June 2024 |website=Financial Times}}</ref>
* {{Flagcountry|Sweden}}

===Opt-out===
{{See also|Denmark and the euro}}
* {{Flagcountry|Denmark}} The government of Denmark negotiated an [[Danish opt-outs from the European Union|opt-out]] to retain its currency.

==Coins and banknotes==
===Coins===
{{Main|Euro coins}}

The euro is divided into 100 [[cent (currency)|cents]] (also referred to as ''euro cents'', especially when distinguishing them from other currencies, and referred to as such on the common side of all cent coins). In Community legislative acts the plural forms of ''euro'' and ''cent'' are spelled without the ''s'', notwithstanding normal English usage.<ref name="ec.europa.eu">{{cite web|url=http://ec.europa.eu/economy_finance/euro/cash/symbol/index_en.htm |title= How to use the euro name and symbol |publisher=European Commission |access-date=7 April 2010}}</ref><ref>{{cite web|url=http://ec.europa.eu/economy_finance/publications/publication6336_en.pdf |title=Spelling of the words "euro" and "cent" in official Community languages as used in Community Legislative acts |access-date=26 November 2008 |author=European Commission }}</ref> Otherwise, normal English plurals are used,<ref>{{cite web |url=http://ec.europa.eu/translation/writing/style_guides/english/style_guide_en.pdf |title=English Style Guide: A handbook for authors and translators in the European Commission |access-date=16 November 2008 |author=European Commission Directorate-General for Translation |url-status=dead |archive-url=https://web.archive.org/web/20101205092625/http://ec.europa.eu/translation/writing/style_guides/english/style_guide_en.pdf |archive-date=5 December 2010 }}; {{cite web |url=http://publications.europa.eu/code/en/en-370303.htm |title=Interinstitutional style guide, 7.3.3. Rules for expressing monetary units |access-date=16 November 2008 |author=European Union }}</ref> with many [[Linguistic issues concerning the euro|local variations]] such as ''centime'' in France.

All circulating coins have a ''common side'' showing the denomination or value, and a map in the background. Due to the [[Languages of the European Union|linguistic plurality in the European Union]], the Latin alphabet version of ''euro'' is used (as opposed to the less common Greek or Cyrillic) and [[Arabic numerals]] (other text is used on national sides in national languages, but other text on the common side is avoided). For the denominations except the 1-, 2- and 5-cent coins, the map only showed the 15 member states of the union as of 2002. Beginning in 2007 or 2008 (depending on the country), the old map was replaced by a map of Europe also showing countries outside the [[European Union|EU]].<ref name="europa-common_sides">{{cite web |title=Common sides of euro coins |url=https://economy-finance.ec.europa.eu/euro/euro-coins-and-notes/euro-coins/common-sides-euro-coins_en |website=Europa |publisher=European Commission |access-date=30 December 2023}}</ref> The 1-, 2- and 5-cent coins, however, keep their old design, showing a geographical map of Europe with the [[European Union|EU]] member states as of 2002, raised somewhat above the rest of the map. All common sides were designed by [[Luc Luycx]]. The coins also have a ''national side'' showing an image specifically chosen by the country that issued the coin. Euro coins from any member state may be freely used in any nation that has adopted the euro.

The coins are issued in denominations of [[2 euro coins|€2]], [[1 euro coins|€1]], [[50 euro cent coin|50c]], [[20 euro cent coin|20c]], [[10 euro cent coin|10c]], [[5 euro cent coin|5c]], [[2 euro cent coin|2c]], and [[1 euro cent coin|1c]]. To avoid the use of the two smallest coins, some cash transactions are rounded to the nearest five cents in the Netherlands and Ireland<ref>{{cite web|url=http://neurope.eu/article/ireland-to-round-to-nearest-5-cents-starting-october-28/|title=Ireland to round to nearest 5 cents starting October 28|date=27 October 2015|access-date=17 December 2018|archive-url=https://web.archive.org/web/20160306012032/http://neurope.eu/article/ireland-to-round-to-nearest-5-cents-starting-october-28/|archive-date=6 March 2016|url-status=dead|df=dmy-all}}</ref><ref>{{cite web|url=https://www.centralbank.ie/paycurr/Pages/rounding.aspx|title=Rounding |website= Central Bank of Ireland}}</ref> (by voluntary agreement) and in Finland and Italy (by law).<ref>{{cite web|author=European Commission|author-link=European Commission|title=Euro cash: five and familiar |url=http://ec.europa.eu/economy_finance/een/005/article_4324_en.htm |publisher=[[Europa (web portal)|Europa]] |date = January 2007|access-date=26 January 2009}}</ref> This practice is discouraged by the commission, as is the practice of certain shops of refusing to accept high-value euro notes.<ref>Pop, Valentina (22 March 2010) [http://euobserver.com/?aid=29737 "Commission frowns on shop signs that say: '€500 notes not accepted{{'"}}], ''[[EU Observer]]''</ref>

[[€2 commemorative coins|Commemorative coins]] with €2 face value have been issued with changes to the design of the national side of the coin. These include both commonly issued coins, such as the €2 commemorative coin for the fiftieth anniversary of the signing of the Treaty of Rome, and nationally issued coins, such as the coin to commemorate the [[2004 Summer Olympics]] issued by Greece. These coins are legal tender throughout the eurozone. Collector coins with various other denominations have been issued as well, but these are not intended for general circulation, and they are legal tender only in the member state that issued them.<ref>{{cite web|url=http://europa.eu/legislation_summaries/economic_and_monetary_affairs/introducing_euro_practical_aspects/l25058_en.htm |title=Commission communication: The introduction of euro banknotes and coins one year after COM(2002) 747 |access-date=26 January 2009 |author=European Commission |publisher=Europa (web portal) |date=15 February 2003}}</ref>

====Coin minting====
A number of institutions are authorised to mint euro coins:
{{div col|colwidth=25em}}
* [[Bavarian Central Mint|Bayerisches Hauptmünzamt]] ([[Mint mark]]: D)
* [[Currency Centre]]
* [[Royal Mint (Spain)|Fábrica Nacional de Moneda y Timbre-Real Casa de la Moneda]]
* [[Hamburgische Münze]] (J)
* [[Croatian Mint|Hrvatska kovnica novca]]
* {{ill|Ίδρυμα Εκτύπωσης Τραπεζογραμματίων και Αξιών|el}}
* [[Imprensa Nacional-Casa da Moeda]]
* [[Istituto Poligrafico e Zecca dello Stato]]
* [[Royal Belgian Mint|Koninklijke Munt van België/Monnaie Royale de Belgique]]
* [[Royal Dutch Mint|Koninklijke Nederlandse Munt]]
* [[Lithuanian Mint|Lietuvos monetų kalykla]]
* [[Kremnica Mint|Mincovňa Kremnica]]
* [[Monnaie de Paris]]
* [[Austrian Mint|Münze Österreich]]
* [[Mint of Finland|Suomen Rahapaja/Myntverket i Finland]]
* [[Staatliche Münze Berlin]] (A)
* [[Staatliche Münzen Baden-Württemberg]] (F): Stuttgart, (G): Karlsruhe
{{div col end}}

===Banknotes===
{{Main|Euro banknotes}}
[[File:Euro coins and banknotes.jpg|thumb|[[Euro coins]] and banknotes of various denominations]]

The design for the [[euro banknotes]] has common designs on both sides. The design was created by the Austrian designer [[Robert Kalina]].<ref name="euro96">{{cite web|url=http://www.ecb.int/euro/changeover/2002/photos/html/image12.en.html |title=Robert Kalina, designer of the euro banknotes, at work at the Oesterreichische Nationalbank in Vienna |publisher=European Central Bank |access-date=30 May 2010}}</ref> Notes are issued in [[500 euro note|€500]], [[200 euro note|€200]], [[100 euro note|€100]], [[50 euro note|€50]], [[20 euro note|€20]], [[10 euro note|€10]], and [[5 euro note|€5]]. Each banknote has its own colour and is dedicated to an artistic period of European architecture. The front of the note features windows or gateways while the back has bridges, symbolising links between states in the union and with the future. While the designs are supposed to be devoid of any identifiable characteristics, the initial designs by Robert Kalina were of specific bridges, including the [[Rialto]] and the [[Pont de Neuilly]], and were subsequently rendered more generic; the final designs still bear very close similarities to their specific prototypes; thus they are not truly generic. The monuments looked similar enough to different national monuments to please everyone.<ref>{{cite news|last=Schmid |first=John |url=https://www.nytimes.com/2001/08/03/news/03iht-euro_ed3_.html |title=Etching the Notes of a New European Identity|work=International Herald Tribune |date=3 August 2001 |access-date=29 May 2009}}</ref>

The Europa series, or second series, consists of six denominations and no longer includes the €500 with issuance discontinued as of 27 April 2019.<ref name="Bank">{{Cite web|title=Banknotes|url=https://www.ecb.europa.eu/euro/banknotes/html/index.en.html|website=European Central Bank|access-date=2020-05-10}}</ref> However, both the first and the second series of euro banknotes, including the €500, remain legal tender throughout the euro area.<ref name="Bank"/>

In December 2021, the ECB announced its plans to redesign euro banknotes by 2024. A theme advisory group, made up of one member from each euro area country, was selected to submit theme proposals to the ECB. The proposals will be voted on by the public; a design competition will also be held.<ref>{{cite journal|title=ECB to redesign euro banknotes by 2024 |url=https://www.ecb.europa.eu/press/pr/date/2021/html/ecb.pr211206~a9e0ba2198.en.html |access-date=7 December 2021 |date=6 December 2021|website=European Central Bank}}</ref>

====Issuing modalities for banknotes====
Since 1 January 2002, the national central banks (NCBs) and the [[European Central Bank|ECB]] have issued euro banknotes on a joint basis.<ref name="Scheller">{{Cite book|url=https://www.ecb.europa.eu/pub/pdf/other/ecbhistoryrolefunctions2006en.pdf|quote=Since 1 January 2002, the NCBs and the ECB have issued euro banknotes on a joint basis. |title=The European Central Bank: History, Role and Functions|first=Hanspeter K. |last=Scheller |edition=2nd |date= 2006|isbn=978-92-899-0027-0 |page=103|publisher=European Central Bank }}</ref> Eurosystem NCBs are required to accept euro banknotes put into circulation by other Eurosystem members and these banknotes are not repatriated. The ECB issues 8% of the total value of banknotes issued by the Eurosystem.<ref name="Scheller"/> In practice, the ECB's banknotes are put into circulation by the NCBs, thereby incurring matching liabilities vis-à-vis the ECB. These liabilities carry interest at the main refinancing rate of the ECB. The other 92% of euro banknotes are issued by the NCBs in proportion to their respective shares of the ECB capital key,<ref name="Scheller"/> calculated using national share of European Union (EU) population and national share of EU GDP, equally weighted.<ref>
{{cite web
|url=http://www.ecb.int/ecb/orga/capital/html/index.en.html
|title=Capital Subscription
|publisher=European Central Bank
|access-date=18 December 2011
|quote=The NCBs' shares in this capital are calculated using a key which reflects the respective country's share in the total population and gross domestic product of the EU&nbsp;– in equal weightings. The ECB adjusts the shares every five years and whenever a new country joins the EU. The adjustment is done on the basis of data provided by the European Commission.
}}
</ref>

====Banknote printing====
Member states are authorised to print or to commission bank note printing. {{as of|November 2022}}, these are the printers:
{{div col|colwidth=25em}}
* [[Istituto Poligrafico e Zecca dello Stato]]
* [[Banco de Portugal]]
* [[Bank of Greece]]
* {{lang|fr|[[Banque de France]]}}
* [[Bundesdruckerei]]
* [[Central Bank of Ireland]]
* [[De La Rue]]
* [[Fábrica Nacional de Moneda y Timbre]]
* [[François-Charles Oberthur]]
* [[Giesecke & Devrient]]
* [[Joh. Enschedé|Royal Joh. Enschedé]]
* [[National Bank of Belgium]]
* [[Oesterreichische Nationalbank]]
* [[Setec (Company of Finland)|Setec Oy]]
{{div col end}}

===Payments clearing, electronic funds transfer===
{{Main|Single Euro Payments Area}}

Capital within the EU may be transferred in any amount from one state to another. All intra-Union transfers in euro are treated as domestic transactions and bear the corresponding domestic transfer costs.<ref>{{cite web|url=http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32001R2560:EN:HTML|title=Regulation (EC) No 2560/2001 of the European Parliament and of the Council of 19 December 2001 on cross-border payments in euro |publisher=EUR-lex&nbsp;– European Communities, Publications office, Official Journal L 344, 28 December 2001 P. 0013&nbsp;– 0016 |access-date=26 December 2008}}</ref> This includes all member states of the EU, even those outside the eurozone providing the transactions are carried out in euro.<ref>{{cite web |url=http://www.euro.gov.uk/crossborder.asp |title=Cross border payments in the EU, Euro Information, The Official Treasury Euro Resource |publisher=United Kingdom Treasury |access-date=26 December 2008 |url-status=dead |archive-url=https://web.archive.org/web/20081201114647/http://www.euro.gov.uk/crossborder.asp |archive-date=1 December 2008 }}</ref> Credit/debit card charging and ATM withdrawals within the eurozone are also treated as domestic transactions; however paper-based payment orders, like cheques, have not been standardised so these are still domestic-based. The ECB has also set up a [[clearing (finance)|clearing system]], [[TARGET]], for large euro transactions.<ref>{{cite web|url=http://www.ecb.int/paym/target/html/index.en.html |archive-url=https://web.archive.org/web/20080121081217/http://www.ecb.int/paym/target/html/index.en.html |archive-date=21 January 2008 |title=TARGET |author=European Central Bank |access-date=25 October 2007}}</ref>

==History==
{{Main|History of the euro}}

===Introduction===
{{Euro adoption past|group="note"}}

The euro was established by the provisions in the 1992 [[Maastricht Treaty]]. To participate in the currency, member states are meant to meet [[Euro convergence criteria|strict criteria]], such as a budget [[Government budget deficit|deficit]] of less than 3% of their GDP, a debt ratio of less than 60% of GDP (both of which were ultimately widely flouted after introduction), low inflation, and [[interest]] rates close to the EU average. In the Maastricht Treaty, the United Kingdom and Denmark were granted exemptions per their request from moving to the stage of monetary union which resulted in the introduction of the euro (see also [[United Kingdom and the euro]]).

The name "euro" was officially adopted in [[Madrid]] on 16 December 1995.<ref name="madrid1995"/> Belgian [[Esperantist]] [[Germain Pirlot]], a former teacher of French and history, is credited with naming the new currency by sending a letter to then [[President of the European Commission]], [[Jacques Santer]], suggesting the name "euro" on 4 August 1995.<ref>{{Cite news | title= Germain Pirlot 'uitvinder' van de euro | url= http://www.ikso.net/vikipedio/artikeleuro.jpg | publisher= De Zeewacht | language= nl | date= 16 February 2007 | access-date= 21 May 2012 | url-status=dead | archive-url= https://web.archive.org/web/20130630181850/http://www.ikso.net/vikipedio/artikeleuro.jpg | archive-date= 30 June 2013 }}</ref>

Due to differences in national conventions for [[rounding]] and significant digits, all conversion between the national currencies had to be carried out using the process of [[Triangulation (finance)|triangulation]] via the euro. The ''definitive'' values of one euro in terms of the [[exchange rate]]s at which the currency entered the euro are shown in the table.

The rates were determined by the [[Council of the European Union]],{{efn|by means of Council Regulation 2866/98 (EC) of 31 December 1998.}} based on a recommendation from the European Commission based on the market rates on 31 December 1998. They were set so that one [[European Currency Unit]] (ECU) would equal one euro. The European Currency Unit was an accounting unit used by the EU, based on the currencies of the member states; it was not a currency in its own right. They could not be set earlier, because the ECU depended on the closing exchange rate of the non-euro currencies (principally [[pound sterling]]) that day.

The procedure used to fix the conversion rate between the [[Modern drachma|Greek drachma]] and the euro was different since the euro by then was already two years old. While the conversion rates for the initial eleven currencies were determined only hours before the euro was introduced, the conversion rate for the Greek drachma was fixed several months beforehand.{{efn|by Council Regulation 1478/2000 (EC) of 19 June 2000.}}

The currency was introduced in non-physical form ([[traveller's cheque]]s, electronic transfers, banking, etc.) at midnight on 1 January 1999, when the national currencies of participating countries (the eurozone) ceased to exist independently. Their exchange rates were locked at fixed rates against each other. The euro thus became the successor to the [[European Currency Unit]] (ECU). The notes and coins for the old currencies, however, continued to be used as [[legal tender]] until new euro notes and coins were introduced on 1 January 2002.

The changeover period during which the former currencies' notes and coins were exchanged for those of the euro lasted about two months, until 28 February 2002. The official date on which the national currencies ceased to be legal tender varied from member state to member state. The earliest date was in Germany, where the [[Deutsche Mark|mark]] officially ceased to be legal tender on 31 December 2001, though the exchange period lasted for two months more. Even after the old currencies ceased to be legal tender, they continued to be accepted by national central banks for periods ranging from several years to indefinitely (the latter for Austria, Germany, Ireland, Estonia and Latvia in banknotes and coins, and for Belgium, Luxembourg, Slovenia and Slovakia in banknotes only). The earliest coins to become non-convertible were the Portuguese [[Portuguese escudo|escudos]], which ceased to have monetary value after 31 December 2002, although banknotes remained exchangeable until 2022.{{clear}}

===Currency sign===
[[File:Euro logo plus character.png|thumb|The euro sign; logotype and handwritten]]
{{Main|Euro sign}}

A special [[euro sign|euro currency sign]] (€) was designed after a public survey had narrowed ten of the original thirty proposals down to two. The [[President of the European Commission]] at the time ([[Jacques Santer]]) and the European Commissioner with responsibility for the euro ([[Yves-Thibault de Silguy]]) then chose the winning design.<ref>{{cite web |title=The euro, our currency {{!}} A symbol for the European currency |date=18 March 2009  |access-date=8 April 2023 |publisher=European Commission |url=https://ec.europa.eu/economy_finance/events/2009/theeuro/isola3_en2008-2009.pdf}}</ref>

Regarding the symbol, the [[European Commission]] stated on behalf of the [[European Union]]:

{{blockquote|The symbol € is based on the Greek letter epsilon (Є), with the first letter in the word "Europe" and with 2 parallel lines signifying stability.|source=[[Directorate-General for Communication]]<ref name="design, rules">{{cite web |title=Institutions, law, budget {{!}} The Euro {{!}} Design |author=Directorate-General for Communication |publisher=European Union |access-date=8 April 2022 |url= https://european-union.europa.eu/institutions-law-budget/euro/design_en}}</ref>}}

The European Commission also specified a euro logo with exact proportions.<ref name="design, rules" /> Placement of the currency sign relative to the numeric amount varies from state to state, but for texts in English published by EU institutions, the symbol (or the [[International Organization for Standardization|ISO]]-standard "EUR") should precede the amount.<ref>{{cite web|url=http://publications.europa.eu/code/en/en-370303.htm#position|title=Position of the ISO code or euro sign in amounts|date=5 February 2009|work=Interinstitutional style guide|publisher=Europa Publications Office|access-date=10 January 2010|location=Bruxelles, Belgium}}</ref>

===Eurozone crisis===
[[File:Europe bonds sovereign debt crisis.webp|thumb|300px|European 10 year bonds, before the [[Great Recession in Europe]] bonds floated together in parity
{{legend-line|#001489 solid 3px|[[Greece]] 10 year bond}}
{{legend-line|#046A38 solid 3px|[[Portugal]] 10 year bond}}
{{legend-line|#FF8200 solid 3px|[[Republic of Ireland|Ireland]] 10 year bond}}
{{legend-line|#F1BF00 solid 3px|[[Spain]] 10 year bond}}
{{legend-line|#CD212A solid 3px|[[Italy]] 10 year bond}}
{{legend-line|#970E53 solid 3px|[[France]] 10 year bond}}
{{legend-line|#000000 solid 3px|[[Germany]] 10 year bond}}
]]
{{main|European debt crisis|Greek government-debt crisis}}
{{see also|2008–2011 Icelandic financial crisis}}

[[File:Government surplus or deficit (EU-USA-UK).png|thumb|Budget deficit of the eurozone compared to the United States and the United Kingdom.]]

Following the U.S. financial crisis in 2008, fears of a [[Sovereign default|sovereign debt crisis]] developed in 2009 among investors concerning some European states, with the situation becoming particularly tense in [[2000s European sovereign debt crisis timeline|early 2010]].<ref>{{Cite news|url= https://www.reuters.com/article/idUSLDE61F0W720100216 |title=Peripheral euro zone government bond spreads widen |work=Reuters |author=George Matlock |date=16 February 2010 |access-date=28 April 2010}}</ref><ref>{{cite news|url=http://www.economist.com/node/16009099 | title=Acropolis now |newspaper=The Economist |date=29 April 2010 |access-date=22 June 2011}}</ref> [[Economy of Greece|Greece]] was most acutely affected, but fellow Eurozone members [[Economy of Cyprus|Cyprus]], [[Economy of the Republic of Ireland|Ireland]], [[Economy of Italy|Italy]], [[Economy of Portugal|Portugal]], and [[Economy of Spain|Spain]] were also significantly affected.<ref>[http://www.cnn.com/2013/07/27/world/europe/european-debt-crisis-fast-facts/index.html European Debt Crisis Fast Facts], CNN Library (last updated 22 January 2017).</ref><ref>[[Ricardo Reis]], [https://www.brookings.edu/wp-content/uploads/2016/07/PDFReisTextFallBPEA.pdf Looking for a Success in the Euro Crisis Adjustment Programs: The Case of Portugal], ''Brookings Papers on Economic Activity'', [[Brookings Institution]] (Fall 2015), p. 433.</ref> All these countries used EU funds except Italy, which is a major donor to the EFSF.<ref>{{cite web|url=http://www.linkiesta.it/it/article/2011/11/04/efsf-come-funziona-il-fondo-salvastati-europeo/2302/|title=Efsf, come funziona il fondo salvastati europeo|date=4 November 2011}}</ref> To be included in the eurozone, countries had to fulfil certain [[Euro convergence criteria|convergence criteria]], but the meaningfulness of such criteria was diminished by the fact it was not enforced with the same level of strictness among countries.<ref>{{cite web|url=http://www.voxeu.org/index.php?q=node/3454 |title=The politics of the Maastricht convergence criteria|publisher=VoxEU |date=15 April 2009 |access-date=1 October 2011}}</ref>

According to the [[Economist Intelligence Unit]] in 2011, "[I]f the [euro area] is treated as a single entity, its [economic and fiscal] position looks no worse and in some respects, rather better than that of the US or the UK" and the budget deficit for the euro area as a whole is much lower and the euro area's government debt/GDP ratio of 86% in 2010 was about the same level as that of the United States. "Moreover", they write, "private-sector indebtedness across the euro area as a whole is markedly lower than in the highly leveraged [[Anglosphere|Anglo-Saxon]] economies". The authors conclude that the crisis "is as much political as economic" and the result of the fact that the euro area lacks the support of "institutional [[paraphernalia]] (and mutual bonds of solidarity) of a state".<ref>{{cite web|url=http://pages.eiu.com/rs/eiu2/images/EuroDebtPaperMarch2011.pdf |title=State of the Union: Can the euro zone survive its debt crisis?|page=4 |publisher=[[Economist Intelligence Unit]] |date=1 March 2011 |access-date=1 December 2011}}</ref>

The crisis continued with S&P downgrading the credit rating of nine euro-area countries, including France, then downgrading the entire [[European Financial Stability Facility]] (EFSF) fund.<ref>{{Cite news|url=https://www.reuters.com/article/us-eurozone-efsf-sp-idUSTRE80F1OV20120116|title=S&P downgrades euro zone's EFSF bailout fund|date=2017-01-16|work=Reuters|access-date=2017-01-21}}</ref>

A historical parallel&nbsp;– to 1931 when Germany was burdened with debt, unemployment and austerity while France and the United States were relatively strong creditors&nbsp;– [[Liaquat Ahamed#Lords of Finance|gained attention]] in summer 2012<ref>{{cite web |url=http://www.marketwatch.com/story/euro-crisis-brings-world-to-brink-of-depression-2012-07-24 |title=Euro crisis brings world to brink of depression |first=Darrell | last= Delamaide |website=MarketWatch |date=24 July 2012 |access-date=24 July 2012}}</ref> even as Germany received a [[Bond credit rating#Credit rating agencies|debt-rating]] warning of its own.<ref>Lindner, Fabian, "[https://www.theguardian.com/commentisfree/2012/jul/24/germany-moodys-warning-shot-eurozone Germany would do well to heed the Moody's warning shot]", ''The Guardian'', 24 July 2012. Retrieved 25 July 2012.</ref><ref>Buergin, Rainer, "[http://washpost.bloomberg.com/Story?docId=1376-M7MTLK6K50YQ01-2MU1077HDEEK0FPVVG6AUS88JB Germany, Juncker Push Back After Moody's Rating Outlook Cuts] {{Webarchive|url=https://web.archive.org/web/20120728105157/http://washpost.bloomberg.com/Story?docId=1376-M7MTLK6K50YQ01-2MU1077HDEEK0FPVVG6AUS88JB |date=28 July 2012 }}", ''washpost.bloomberg'', 24 July 2012. Retrieved 25 July 2012.</ref>

==Direct and indirect usage==
{{Further|Eurozone|International status and usage of the euro|Enlargement of the eurozone}}
{{Eurozone labelled map interior}}

===Agreed direct usage with minting rights===
The euro is the sole currency of 20 [[European Union member states|EU member states]]: Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. These countries constitute the "[[eurozone]]", some 347&nbsp;million people in total {{As of|2023|lc=y}}.<ref name="2013_data_sheet">{{cite web|url=http://www.prb.org/pdf13/2013-population-data-sheet_eng.pdf|title=2013 World Population Data Sheet|author=Population Reference Bureau|author-link=Population Reference Bureau|access-date=2013-10-01|archive-date=26 February 2015|archive-url=https://web.archive.org/web/20150226072048/http://www.prb.org/pdf13/2013-population-data-sheet_eng.pdf|url-status=dead}}</ref> According to [[International status and usage of the euro#Sovereign states|bilateral agreements with the EU]], the euro has also been designated as the sole and official currency in a further four [[Microstates and the European Union|European microstates]] awarded minting rights (Andorra, Monaco, San Marino and the Vatican City). All but one (Denmark) current, and any potential future EU members, are [[enlargement of the eurozone|obliged to adopt the euro]] when economic conditions permit.

===Agreed direct usage without minting rights===
The euro is also the sole currency in three [[Special member state territories and the European Union|overseas territories of France]] that are not themselves part of the EU, namely [[Saint Barthélemy]], [[Saint Pierre and Miquelon]], and the [[French Southern and Antarctic Lands]], as well as in the [[British Overseas Territory]] of [[Akrotiri and Dhekelia]].<ref>{{cite web | title=Sovereign Base areas of Akrotiri and Dhekelia on Cyprus |url=https://commonwealthchamber.com/associated-territories/sovereign-base-areas-of-akrotiri-and-dhekelia-on-cyprus/ |website=Commonwealth Chamber of Commerce}}</ref>

===Unilateral direct usage===
The euro has been adopted unilaterally as the sole currency of Montenegro and Kosovo. It has also been used as a foreign trading currency in Cuba since 1998,<ref>{{cite news| title=Cuba to adopt euro in foreign trade |url=http://news.bbc.co.uk/1/hi/world/americas/210441.stm |work=BBC News |date=8 November 1998 |access-date=2 January 2008}}</ref> Syria since 2006,<ref>{{cite news| title= US row leads Syria to snub dollar | url= http://news.bbc.co.uk/1/hi/business/4713622.stm |work=BBC News |date=14 February 2006 | access-date=2 January 2008}}</ref> and Venezuela since 2018.<ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2018-10-16/dollars-are-out-euros-are-in-as-u-s-sanctions-sting-venezuela|title=Dollars Are Out, Euros Are in as U.S. Sanctions Sting Venezuela|last1=Rosati|first1=Andrew|date=17 October 2018|work=[[Bloomberg News|Bloomberg]]|access-date=17 June 2019|last2=Zerpa|first2=Fabiola}}</ref> In 2009, Zimbabwe abandoned its [[Zimbabwean dollar|local currency]] and introduced major global convertible currencies instead, including the euro and the United States dollar. The direct usage of the euro outside of the official framework of the EU affects nearly 3&nbsp;million people.<ref>{{Cite news| title=Zimbabwe: A Critical Review of Sterp |url=http://allafrica.com/stories/200904170690.html |date=17 April 2009 |access-date=30 April 2009}}</ref>

===Currencies pegged to the euro===
{{Main|International status and usage of the euro}}
[[File:DOLLAR AND EURO IN THE WORLD.svg|thumb|upright=1.35|Worldwide use of the euro and the US dollar:
{{Legend|#092D98|[[Eurozone]]}}
{{Legend|#98b3ff|External adopters of the euro}}
{{Legend|#510999|Currencies pegged to the euro}}
{{Legend|#CC99FF|Currencies pegged to the euro within narrow band}}
{{Legend|#099811|United States}}
{{Legend|#99FF9E|External adopters of the US dollar}}
{{Legend|#999909|Currencies pegged to the US dollar}}
{{Legend|#FFFF99|Currencies pegged to the US dollar within narrow band}}
<hr/>
<small>Note: The [[Belarusian rouble]] is pegged to the euro, [[Russian rouble]] and [[United States dollar|US dollar]] in a [[currency basket]].</small>]]

Outside the eurozone, two EU member states have currencies that are [[Fixed exchange rate system|pegged to the euro]], which is a precondition to joining the eurozone. The [[Danish krone]] and [[Bulgarian lev]] are pegged due to their participation in the [[European Exchange Rate Mechanism|ERM&nbsp;II]].

Additionally, a total of 21 countries and territories that do not belong to the EU have currencies that are directly [[Fixed exchange rate system|pegged]] to the euro including 14 countries in mainland Africa ([[CFA franc]]), two African island countries ([[Comorian franc]] and [[Cape Verdean escudo]]), three French Pacific territories ([[CFP franc]]) and two Balkan countries, Bosnia and Herzegovina ([[Bosnia and Herzegovina convertible mark]]) and North Macedonia ([[Macedonian denar]]).<ref name="Cardoso"/> On 1 January 2010, the [[São Tomé and Príncipe dobra|dobra]] of [[São Tomé and Príncipe]] was officially linked with the euro.<ref>{{cite web|url=http://www.telanon.info/economia/2010/01/04/2437/1-euro-equivale-a-24500-dobras/|title=1 euro equivale a 24.500 dobras|date=4 January 2009|trans-title=1 euro is equivalent to 24,500 dobras|language=pt|access-date=16 November 2020|publisher=Téla Nón}}</ref> Additionally, the [[Moroccan dirham]] is tied to a basket of currencies, including the euro and the US dollar, with the euro given the highest weighting.

These countries generally had previously implemented a currency peg to one of the major European currencies (e.g. the [[French franc]], [[Deutsche Mark]] or [[Portuguese escudo]]), and when these currencies were replaced by the euro their currencies became pegged to the euro. Pegging a country's currency to a major currency is regarded as a safety measure, especially for currencies of areas with weak economies, as the euro is seen as a stable currency, prevents runaway inflation, and encourages foreign investment due to its stability.

In total, {{As of|2013|lc=y}}, 182&nbsp;million people in Africa use a currency pegged to the euro, 27&nbsp;million people outside the eurozone in Europe, and another 545,000 people on Pacific islands.<ref name="2013_data_sheet"/>

Since 2005, stamps issued by the [[Sovereign Military Order of Malta]] have been denominated in euros, although the Order's official currency remains the [[Maltese scudo]].<ref name=smom>{{cite web| url = https://www.orderofmalta.int/associate-countries/| title = Retrieved 3 October 2017.}}</ref> The Maltese scudo itself is pegged to the euro and is only recognised as legal tender within the Order.

The currency of a number of states is [[Fixed exchange rate system|pegged]] to the euro. These states are:
{{div col|colwidth=25em}}

'''North America'''
* {{Flagcountry|Haiti}} ([[Haitian gourde]], {{ISO 4217|HTG}})

'''Europe'''
* {{Flagcountry|Albania}} ([[Albanian lek]], {{ISO 4217|ALL}})
* {{Flagcountry|Bosnia and Herzegovina}} ([[Bosnia and Herzegovina convertible mark]], {{ISO 4217|BAM}})
* {{Flagcountry|Bulgaria}} ([[Bulgarian lev]], {{ISO 4217|BGN}})
* {{Flagcountry|Denmark}} ([[Danish krone]], {{ISO 4217|DKK}})
* {{Flagcountry|North Macedonia}} ([[Macedonian denar]], {{ISO 4217|MKD}})<ref name="Cardoso">{{cite web |last=Cardoso |first=Paulo |title=Interview&nbsp;– Governor of the National Bank of Macedonia&nbsp;– Dimitar Bogov |url=http://www.the-american-times.com/american-times-governor-national-bank-macedonia-dimitar-bogov/2013/10/05 |work=The American Times United States Emerging Economies Report (USEER Report) |publisher=Hazlehurst Media SA |access-date=8 September 2013 |archive-url=https://web.archive.org/web/20131020073010/http://www.the-american-times.com/american-times-governor-national-bank-macedonia-dimitar-bogov/2013/10/05 |archive-date=20 October 2013 |url-status=dead }}</ref>
* {{Flagcountry|Sovereign Military Order of Malta}} ([[Maltese scudo]])<ref>{{Cite web |title=Numismatica|url=https://www.ordinedimaltaitalia.org/article/numismatica |access-date=2022-04-30 |website=Ordine di Malta Italia}}</ref>
* {{Flagcountry|Moldova}} ([[Moldovan leu]], {{ISO 4217|MDL}})
* {{Flagcountry|Romania}} ([[Romanian leu]], {{ISO 4217|RON}})
* {{Flagcountry|Serbia}} ([[Serbian dinar]], {{ISO 4217|RSD}})

'''Oceania'''
* {{Flagcountry|French Polynesia}} ([[CFP franc]], {{ISO 4217|XPF}})
* {{Flagcountry|New Caledonia}}  (CFP franc)
* {{Flagcountry|Wallis and Futuna}} (CFP franc)

'''Africa'''
* {{Flagcountry|Burundi}} ([[Burundi franc]], {{ISO 4217|BIF}})
* {{Flagcountry|Cape Verde}} ([[Cape Verdean escudo]], {{ISO 4217|CVE}})
* {{Flagcountry|Cameroon}} ([[Central African CFA franc]], {{ISO 4217|XAF}})
* {{Flagcountry|Central African Republic}} (Central African CFA franc)
* {{Flagcountry|Chad}} (Central African CFA franc)
* {{Flagcountry|Equatorial Guinea}} (Central African CFA franc)
* {{Flagcountry|Gabon}} (Central African CFA franc)
* {{Flagcountry|Republic of the Congo}} (Central African CFA franc)
* {{Flagcountry|Comoros}} ([[Comorian franc]], {{ISO 4217|KMF}})
* {{Flagcountry|Democratic Republic of the Congo}} ([[Congolese franc]], {{ISO 4217|CDF}})
* {{Flagcountry|Djibouti}} ([[Djibouti franc]], {{ISO 4217|DJF}})
* {{Flagcountry|Eritrea}} ([[Eritrean nakfa]], {{ISO 4217|ERN}})
* {{Flagcountry|Ethiopia}} ([[Ethiopian birr]], {{ISO 4217|ETB}})
* {{Flagcountry|Gambia}} ([[Gambian dalasi]], {{ISO 4217|GMD}})
* {{Flagcountry|Guinea}} ([[Guinean franc]], {{ISO 4217|GNF}})
* {{Flagcountry|Madagascar}} ([[Malagasy ariary]], {{ISO 4217|MGA}})
* {{Flagcountry|Mozambique}} ([[Mozambique metical]], {{ISO 4217|MZN}})
* {{Flagcountry|Rwanda}} ([[Rwanda franc]], {{ISO 4217|RWF}})
* {{Flagcountry|Sahrawi Arab Democratic Republic}} ([[Sahrawi peseta]])
* {{Flagcountry|São Tomé and Príncipe}} ([[São Tomé and Príncipe dobra]], {{ISO 4217|STN}})
* {{Flagcountry|Sierra Leone}} ([[Sierra Leonean leone]], {{ISO 4217|SLE}})
* {{Flagcountry|Benin}} ([[West African CFA franc]], {{ISO 4217|XOF}})
* {{Flagcountry|Burkina Faso}} (West African CFA franc) 
* {{Flagcountry|Côte d'Ivoire}} (West African CFA franc) 
* {{Flagcountry|Guinea-Bissau}} (West African CFA franc) 
* {{Flagcountry|Mali}} (West African CFA franc) 
* {{Flagcountry|Niger}} (West African CFA franc) 
* {{Flagcountry|Senegal}} (West African CFA franc) 
* {{Flagcountry|Togo}} (West African CFA franc)
{{div col end}}

===Use as reserve currency===
Since its introduction in 1999, the euro has been the second most widely held international [[reserve currency]] after the U.S. dollar. The share of the euro as a reserve currency increased from 18% in 1999 to 27% in 2008. Over this period, the share held in U.S. dollar fell from 71% to 64% and that held in RMB fell from 6.4% to 3.3%. The euro inherited and built on the status of the [[Deutsche Mark]] as the second most important reserve currency. The euro remains underweight as a reserve currency in advanced economies while overweight in emerging and developing economies: according to the [[International Monetary Fund]]<ref name="external1">{{cite web|url=http://www.imf.org/external/np/sta/cofer/eng/cofer.pdf |title=Currency Composition of Official Foreign Exchange Reserves (COFER)&nbsp;– Updated COFER tables include first quarter 2009 data. June&nbsp;30, 2009 |access-date=8 July 2009}}</ref> the total of euro held as a reserve in the world at the end of 2008 was equal to $1.1&nbsp;trillion or €850&nbsp;billion, with a share of 22% of all currency reserves in advanced economies, but a total of 31% of all currency reserves in emerging and developing economies.

The possibility of the euro becoming the first international reserve currency has been debated among economists.<ref>{{cite web |url=http://www.wage.wisc.edu/uploads/Working%20Papers/chinnfrankel_NBER_eurotopcurrency.pdf |title=Will the Euro Eventually Surpass the Dollar As Leading International Reserve Currency? |access-date=17 July 2011 |url-status=dead |archive-url=https://web.archive.org/web/20130825070016/http://www.wage.wisc.edu/uploads/Working%20Papers/chinnfrankel_NBER_eurotopcurrency.pdf |archive-date=25 August 2013 }}</ref> Former [[Federal Reserve]] Chairman [[Alan Greenspan]] gave his opinion in September 2007 that it was "absolutely conceivable that the euro will replace the US dollar as reserve currency, or will be traded as an equally important reserve currency".<ref>{{Cite news| title=Euro could replace dollar as top currency&nbsp;– Greenspan | url=https://www.reuters.com/article/bondsNews/idUSL1771147920070917 | access-date=17 September 2007 | date=17 September 2007 |work=Reuters}}</ref> In contrast to Greenspan's 2007 assessment, the euro's increase in the share of the worldwide currency reserve basket has slowed considerably since 2007 and since the beginning of the worldwide [[credit crunch]] related recession and [[European debt crisis|European sovereign-debt crisis]].<ref name="external1"/>

==Economics==
===Optimal currency area===

{{Further|Optimum currency area}}

In economics, an optimum currency area, or region (OCA or OCR), is a geographical region in which it would maximise economic efficiency to have the entire region share a single currency. There are two models, both proposed by [[Robert Mundell]]: the [[Optimum currency area#OCA with stationary expectations|stationary expectations model]] and the [[Optimum currency area#OCA with international risk sharing|international risk sharing model]]. Mundell himself advocates the international risk sharing model and thus concludes in favour of the euro.<ref>{{cite book|chapter=A Plan for a European Currency |date=1970 |orig-year=published 1973|last=Mundell |first=Robert|editor1=Johnson, H. G. | editor2= Swoboda, A. K. | title = The Economics of Common Currencies{{snd}} Proceedings of Conference on Optimum Currency Areas. 1970. Madrid. | publisher= Allen and Unwin | location = London |pages= 143–172 | isbn= 9780043320495}}</ref> However, even before the creation of the single currency, there were concerns over diverging economies. Before the [[late-2000s recession]] it was considered unlikely that a state would leave the euro or the whole zone would collapse.<ref>{{cite journal |ssrn=1014341 |title=The Breakup of the Euro Area by Barry Eichengreen |date=14 September 2007 |journal=[[NBER Working Paper]] |number=w13393|last1=Eichengreen |first1=Barry }}</ref> However the [[Greek government-debt crisis]] led to former [[British Foreign Secretary]] [[Jack Straw]] claiming the eurozone could not last in its current form.<ref>{{cite news|url=https://www.bbc.co.uk/news/uk-politics-13839381 |title=Greek debt crisis: Straw says eurozone 'will collapse' |work=[[BBC News]] |date=20 June 2011 |access-date=17 July 2011}}</ref> Part of the problem seems to be the rules that were created when the euro was set up. John Lanchester, writing for ''[[The New Yorker]]'', explains it: {{blockquote|The guiding principle of the currency, which opened for business in 1999, were supposed to be a set of rules to limit a country's annual deficit to three per cent of gross domestic product, and the total accumulated debt to sixty per cent of G.D.P. It was a nice idea, but by 2004 the two biggest economies in the euro zone, Germany and France, had broken the rules for three years in a row.<ref>John Lanchester, "Euro Science", ''The New Yorker'', 10 October 2011.</ref>}}

Increasing business cycle divergence across the Eurozone over the last decades implies a decreasing Optimum Currency Area.<ref>{{cite journal | doi=10.1007/s11079-024-09750-z | title=Optimum Currency Area in the Eurozone | date=2024 | last1=Beck | first1=Krzysztof | last2=Okhrimenko | first2=Iana | journal=Open Economies Review | doi-access=free  |issn = 0923-7992 }}</ref>

===Transaction costs and risks===

The most obvious benefit of adopting a single currency is to remove the cost of exchanging currency, theoretically allowing businesses and individuals to consummate previously unprofitable trades. For consumers, banks in the eurozone must charge the same for intra-member cross-border transactions as purely domestic transactions for electronic payments (e.g., [[credit card]]s, [[debit card]]s and [[cash machine]] withdrawals).

Financial markets on the continent are expected to be far more [[market liquidity|liquid]] and flexible than they were in the past. The reduction in cross-border transaction costs will allow larger banking firms to provide a wider array of banking services that can compete across and beyond the eurozone. However, although transaction costs were reduced, some studies have shown that [[risk aversion]] has increased during the last 40 years in the Eurozone.<ref>Benchimol, J., 2014. [https://ideas.repec.org/a/eee/reecon/v68y2014i1p39-56.html Risk aversion in the Eurozone], [[Research in Economics]], vol. 68, issue 1, pp. 40–56.</ref>

===Price parity===

Another effect of the common European currency is that differences in prices—in particular in price levels—should decrease because of the [[law of one price]]. Differences in prices can trigger [[arbitrage]], i.e., [[speculation|speculative]] trade in a [[commodity]] across borders purely to exploit the price differential. Therefore, prices on commonly traded goods are likely to converge, causing inflation in some regions and deflation in others during the transition. Some evidence of this has been observed in specific eurozone markets.<ref>{{cite journal |first1=Pinelopi K. |last1=Goldberg |first2=Frank |last2=Verboven |title=Market Integration and Convergence to the Law of One Price: Evidence from the European Car Market |journal=Journal of International Economics |volume=65 |issue=1 |year=2005 |pages=49–73 |doi=10.1016/j.jinteco.2003.12.002 |citeseerx=10.1.1.494.1517 |s2cid=26850030 }}</ref>

===Macroeconomic stability===

Before the introduction of the euro, some countries had successfully contained inflation, which was then seen as a major economic problem, by establishing largely independent central banks. One such bank was the [[Bundesbank]] in Germany; the European Central Bank was modelled on the Bundesbank.<ref name="bundesbank">{{Cite book|title=The History of the Bundesbank: Lessons for the European Central Bank |last=de Haan |first=Jakob |year=2000 |publisher=Routledge |location=London |isbn=978-0-415-21723-1 |url=https://books.google.com/books?id=EaIV0OWlaokC}}</ref>

The euro has come under criticism due to its regulation, lack of flexibility and rigidity towards sharing member states on issues such as nominal interest rates.<ref>{{Cite journal|last=Silvia|first=Steven J|year=2004|title=Is the Euro Working? The Euro and European Labour Markets|jstor=4007858|volume=24|issue=2|pages=147–168|doi=10.1017/s0143814x0400008x|journal=Journal of Public Policy|s2cid=152633940}}</ref>
Many national and corporate [[bond (finance)|bonds]] denominated in euro are significantly more liquid and have lower interest rates than was historically the case when denominated in national currencies. While increased liquidity may lower the [[nominal interest rate]] on the bond, denominating the bond in a currency with low levels of inflation arguably plays a much larger role. A credible commitment to low levels of inflation and a stable debt reduces the risk that the value of the debt will be eroded by higher levels of inflation or default in the future, allowing debt to be issued at a lower nominal interest rate.

There is also a cost in structurally keeping inflation lower than in the United States, United Kingdom, and China. The result is that seen from those countries, the euro has become expensive, making European products increasingly expensive for its largest importers; hence export from the eurozone becomes more difficult.

In general, those in Europe who own large amounts of euro are served by high stability and low inflation.

A [[monetary union]] means states in that union lose the main mechanism of recovery of their international [[Competition (companies)|competitiveness]] by weakening ([[Currency appreciation and depreciation|depreciating]]) their currency. When [[wage]]s become too high compared to [[productivity]] in the exports sector, then these exports become more expensive and they are crowded out from the market within a country and abroad. This drives the fall of employment and output in the exports sector and fall of [[Balance of trade|trade]] and [[Current account (balance of payments)|current account]] balances. Fall of output and employment in the tradable goods sector may be offset by the growth of non-exports sectors, especially in [[construction]] and [[Service (economics)|services]]. Increased purchases abroad and negative current account balances can be financed without a problem as long as [[credit]] is cheap.<ref>{{cite web |author1=Ernest Pytlarczyk, Stefan Kawalec |title=Controlled Dismantlement of the Euro Area in Order to Preserve the European Union and Single European Market |url=http://www.case-research.eu/en/controlled-dismantlement-of-the-euro-area-in-order-to-preserve-the-european-union-and-sing |publisher=CASE Center for Social and Economic Research |access-date=19 December 2018 |pages=11 |date=June 2012}}</ref> The need to finance trade deficit weakens currency, making exports automatically more attractive in a country and abroad. A state in a monetary union cannot use weakening of currency to recover its international competitiveness. To achieve this a state has to reduce prices, including wages ([[deflation]]). This could result in high [[unemployment]] and lower incomes as it was during the [[European sovereign-debt crisis]].<ref>{{cite journal |author1=[[Martin Feldstein]] |title=The Failure of the Euro |journal=Foreign Affairs |date=January–February 2012 |url=https://www.nber.org/feldstein/fa121311.html |at=Chapter: Trading Places}}</ref>

====Trade====
The euro increased price transparency and stimulated cross-border trade.<ref name="Eichengreen-2019">{{Cite book|last=Eichengreen|first=Barry|url=https://www.jstor.org/stable/j.ctvd58rxg|title=Globalizing Capital: A History of the International Monetary System|date=2019|publisher=Princeton University Press|isbn=978-0-691-19390-8|edition=3rd|pages=212–213|doi=10.2307/j.ctvd58rxg |jstor=j.ctvd58rxg|s2cid=240840930 }}</ref> A 2009 consensus from the studies of the introduction of the euro concluded that it has increased trade within the eurozone by 5% to 10%,<ref>{{cite web|url=http://www.ecb.de/pub/pdf/scpwps/ecbwp594.pdf |title=The euro's trade effects |access-date=2 October 2009}}</ref> and a [[meta-analysis]] of all available studies on the effect of introduction of the euro on increased trade suggests that the prevalence of positive estimates is caused by [[publication bias]] and that the underlying effect may be negligible.<ref>{{cite journal|title=Rose effect and the euro: is the magic gone? |journal=Review of World Economics |doi=10.1007/s10290-010-0050-1 |volume=146 |issue=2 |pages=241–261|year=2010 |last1=Havránek |first1=Tomáš |s2cid=53585674 |url=https://hal.archives-ouvertes.fr/hal-00582634/file/PEER_stage2_10.1007%252Fs10290-010-0050-1.pdf }}</ref> Although a more recent meta-analysis shows that publication bias decreases over time and that there are positive trade effects from the introduction of the euro, as long as results from before 2010 are taken into account. This may be because of the inclusion of the [[Financial crisis of 2007–2008]] and ongoing integration within the EU.<ref>{{Cite journal|last=Polák|first=Petr|year=2019|title=The Euro's Trade Effect: A Meta-Analysis|url=https://www.econstor.eu/bitstream/10419/174189/1/wp_2016_22_polak.pdf |journal=Journal of Economic Surveys|volume=33|issue=1|pages=101–124|doi=10.1111/joes.12264|hdl=10419/174189|s2cid=157693449|issn=1467-6419|hdl-access=free}}</ref> Furthermore, older studies based on certain methods of analysis of main trends  reflecting general cohesion policies in Europe that started before, and continue after implementing the common currency find no effect on trade.<ref>{{cite web|last1=Gomes|first1=Tamara|last2=Graham|first2=Chris|last3=Helliwel|first3=John|last4=Takashi|first4=Kano|last5=Murray|first5=John|last6=Schembri|first6=Lawrence|title=The Euro and Trade: Is there a Positive Effect?|url=http://www2.dse.unibo.it/soegw/paper/GomGraHelKanoMurrayS.pdf|publisher=Bank of Canada|date=August 2006|url-status=dead|archive-url=https://web.archive.org/web/20150903222409/http://www2.dse.unibo.it/soegw/paper/GomGraHelKanoMurrayS.pdf|archive-date=3 September 2015}}</ref><ref>{{cite journal|last1=H.|first1=Berger|last2=V.|first2=Nitsch|title=Zooming out: The trade effect of the euro in historical perspective|journal=Journal of International Money and Finance|volume=27|issue=8|pages=1244–1260 |doi=10.1016/j.jimonfin.2008.07.005|year=2008|hdl=10419/18799|s2cid=53493723|url=https://www.cesifo.org/DocDL/cesifo1_wp1435.pdf|hdl-access=free}}</ref> These results suggest that other policies aimed at European integration might be the source of observed increase in trade. According to Barry Eichengreen, studies disagree on the magnitude of the effect of the euro on trade, but they agree that it did have an effect.<ref name="Eichengreen-2019"/>

====Investment====
Physical investment seems to have increased by 5% in the eurozone due to the introduction.<ref>{{cite web |url=http://www.eu-financial-system.org/fileadmin/content/Dokumente_Events/second_conference/Dvorak.pdf |title=The Impact of the Euro on Investment: Sectoral Evidence |access-date=2 October 2009 |url-status=dead |archive-url=https://web.archive.org/web/20130831043539/http://www.eu-financial-system.org/fileadmin/content/Dokumente_Events/second_conference/Dvorak.pdf |archive-date=31 August 2013 }}</ref> Regarding foreign direct investment, a study found that the intra-eurozone FDI stocks have increased by about 20% during the first four years of the EMU.<ref>{{cite web |url=http://www.afse.fr/docs/congres_2005/docs2005/Sousa.pdf |archive-url=https://web.archive.org/web/20061210053621/http://www.afse.fr/docs/congres_2005/docs2005/Sousa.pdf |archive-date=10 December 2006 |title=Does the single currency affect FDI? |publisher=AFSE.fr |access-date=30 May 2010 |url-status=dead }}</ref> Concerning the effect on corporate investment, there is evidence that the introduction of the euro has resulted in an increase in investment rates and that it has made it easier for firms to access financing in Europe. The euro has most specifically stimulated investment in companies that come from countries that previously had weak currencies. A study found that the introduction of the euro accounts for 22% of the investment rate after 1998 in countries that previously had a weak currency.<ref>{{cite web|url=http://www2.wu-wien.ac.at/rof/papers/pdf/Bris-Koskinen-Nilsson_Euro%20Effects.pdf |title=The Real Effects of the Euro: Evidence from Corporate Investments |access-date=30 May 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110706085845/http://www2.wu-wien.ac.at/rof/papers/pdf/Bris-Koskinen-Nilsson_Euro%20Effects.pdf |archive-date=6 July 2011 }}</ref>

====Inflation====
[[File:Euro inflation.webp|thumb|Euro Zone inflation]]
The introduction of the euro has led to extensive discussion about its possible effect on inflation. In the short term, there was a widespread impression in the population of the eurozone that the introduction of the euro had led to an increase in prices, but this impression was not confirmed by general indices of inflation and other studies.<ref>{{Cite journal|author = Paolo Angelini |author2=Francesco Lippi | title = Did Prices Really Soar after the Euro Cash Changeover? Evidence from ATM Withdrawals | journal = International Journal of Central Banking | date = December 2007 | url = http://www.ijcb.org/journal/ijcb07q4a1.pdf | access-date =23 August 2011}}</ref><ref>{{cite web| url = http://www.destatis.de/jetspeed/portal/cms/Sites/destatis/Internet/DE/Content/Publikationen/Querschnittsveroeffentlichungen/WirtschaftStatistik/Preise/EuroBargeldeinfuehrung,property=file.pdf| title = Fünf Jahre nach der Euro-Bargeldeinführung&nbsp;–War der Euro wirklich ein Teuro?|trans-title=Five years after the introduction of euro cash&nbsp;– Did the euro really make things more expensive?| author = Irmtraud Beuerlein| publisher = Statistisches Bundesamt, Wiesbaden| language = de| access-date =23 August 2011}}</ref> A study of this paradox found that this was due to an asymmetric effect of the introduction of the euro on prices: while it had no effect on most goods, it had an effect on cheap goods which have seen their price round up after the introduction of the euro. The study found that consumers based their beliefs on inflation of those cheap goods which are frequently purchased.<ref>{{cite journal|url=http://www3.interscience.wiley.com/journal/121658067/abstract |archive-url=https://wayback.archive-it.org/all/20171011040045/http://onlinelibrary.wiley.com/doi/10.1111/j.1538-4616.2008.00189.x/abstract |url-status=dead |archive-date=11 October 2017 |title=The Euro Changeover and Its Effects on Price Transparency and Inflation |access-date=12 November 2010|doi=10.1111/j.1538-4616.2008.00189.x|volume=41|journal=Journal of Money, Credit and Banking|pages=101–129|year=2009 |last1=Dziuda |first1=Wioletta |last2=Mastrobuoni |first2=Giovanni |issue=1 }}</ref> It has also been suggested that the jump in small prices may be because prior to the introduction, retailers made fewer upward adjustments and waited for the introduction of the euro to do so.<ref>{{Cite journal|doi=10.1162/qjec.121.3.1103 |title=Quarterly Journal of Economics&nbsp;– Abstract |journal=Quarterly Journal of Economics |volume=121 |issue=3 |pages=1103–1131 |year=2006 |last1=Hobijn |first1=Bart |last2=Ravenna |first2=Federico |last3=Tambalotti |first3=Andrea |url=https://www.econstor.eu/bitstream/10419/60548/1/477453724.pdf }}</ref> Based on the [[Croatia and the euro|introduction of the euro as the official currency in Croatia]] in 2023, the ECB argues that inflation due to a change of currency is a one-time effect of limited impact.<ref>{{Cite web |url=https://www.ecb.europa.eu/press/blog/date/2023/html/ecb.blog.230307~1669dec988.en.html |title=Has the euro changeover really caused extra inflation in Croatia |date=2023-03-07 |access-date=2024-05-05 |website=ECB |last1=Falagiarda |first1=Matteo |last2=Gartner |first2=Christine |last3=Mužić |first3=Ivan |last4=Pufnik |first4=Andreja}}</ref>

====Exchange rate risk====
One of the advantages of the adoption of a common currency is the reduction of the risk associated with changes in currency exchange rates.<ref name="Eichengreen-2019"/> It has been found that the introduction of the euro created "significant reductions in market risk exposures for nonfinancial firms both in and outside Europe".<ref>{{cite journal |title=The impact of the introduction of the Euro on foreign exchange rate risk exposures |journal=Journal of Empirical Finance |doi=10.1016/j.jempfin.2006.01.002 |volume=13 |issue=4–5 |pages=519–549|year=2006 |last1=Bartram |first1=Söhnke M. |last2=Karolyi |first2=G. Andrew }}</ref> These reductions in market risk "were concentrated in firms domiciled in the eurozone and in non-euro firms with a high fraction of foreign sales or assets in Europe".

====Financial integration====
The introduction of the euro increased European financial integration, which helped stimulate growth of a European [[securities market]] (bond markets are characterized by [[economies of scale]] dynamics).<ref name="Eichengreen-2019"/> According to a study on this question, it has "significantly reshaped the European financial system, especially with respect to the securities markets [...] However, the real and policy barriers to integration in the retail and corporate banking sectors remain significant, even if the wholesale end of banking has been largely integrated."<ref>{{cite web|url=http://www.tcd.ie/iiis/documents/discussion/pdfs/iiisdp139.pdf |title=The Euro and Financial Integration|date=May 2006 |access-date=2 October 2009}}</ref> Specifically, the euro has significantly decreased the cost of trade in bonds, equity, and banking assets within the eurozone.<ref>{{cite journal |title=The geography of asset trade and the euro: Insiders and outsiders |journal=Journal of the Japanese and International Economies |doi=10.1016/j.jjie.2008.11.001 |volume=23 |issue=2 |pages=90–113|year=2009 |last1=Coeurdacier |first1=Nicolas |last2=Martin |first2=Philippe |s2cid=55948853 |url=http://www.cepremap.fr/depot/docweb/docweb0701.pdf }}</ref> On a global level, there is evidence that the introduction of the euro has led to an integration in terms of investment in bond portfolios, with eurozone countries lending and borrowing more between each other than with other countries.<ref>{{cite journal |last1=Lane |first1=Philip R. |title=Global Bond Portfolios and EMU |journal=International Journal of Central Banking |date=June 2006 |volume=2 |issue=2 |pages=1–23 |url=https://www.ijcb.org/journal/ijcb06q2a1.htm |citeseerx=10.1.1.365.4579 }}</ref> Financial integration made it cheaper for European companies to borrow.<ref name="Eichengreen-2019"/> Banks, firms and households could also invest more easily outside of their own country, thus creating greater international risk-sharing.<ref name="Eichengreen-2019"/>

====Effect on interest rates====
[[File:Long-term interest rates of eurozone countries since 1993.png|thumb|upright=1.35|Secondary market yields of government bonds with maturities of close to 10 years]]

As of January 2014, and since the introduction of the euro, interest rates of most member countries (particularly those with a weak currency) have decreased. Some of these countries had the most serious sovereign financing problems.

The effect of declining interest rates, combined with excess liquidity continually provided by the ECB, made it easier for banks within the countries in which interest rates fell the most, and their linked sovereigns, to borrow significant amounts (above the 3% of GDP budget deficit imposed on the eurozone initially) and significantly inflate their public and private debt levels.<ref>{{cite web|url=http://www.investmentweek.co.uk/investment-week/opinion/2076100/redwood-origins-euro-crisis |title=Redwood: The origins of the euro crisis |publisher=Investmentweek.co.uk |date=3 June 2011 |access-date=16 September 2011}}</ref> Following the [[financial crisis of 2007–2008]], governments in these countries found it necessary to bail out or nationalise their privately held banks to prevent systemic failure of the banking system when underlying hard or financial asset values were found to be grossly inflated and sometimes so nearly worthless there was no liquid market for them.<ref>{{cite web|url=http://www.ip-global.org/2011/02/01/farewell-fair-weather-euro/ |title=Farewell, Fair-Weather Euro &#124; IP&nbsp;– Global-Edition |publisher=Ip-global.org |access-date=16 September 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110317161013/http://www.ip-global.org/2011/02/01/farewell-fair-weather-euro/ |archive-date=17 March 2011 }}</ref> This further increased the already high levels of public debt to a level the markets began to consider unsustainable, via increasing government bond interest rates, producing the ongoing European sovereign-debt crisis.

====Price convergence====
The evidence on the convergence of prices in the eurozone with the introduction of the euro is mixed. Several studies failed to find any evidence of convergence following the introduction of the euro after a phase of convergence in the early 1990s.<ref>{{cite web |url=https://www.ecb.eu/events/pdf/conferences/emu/sessionV_Angeloni_Paper.pdf |title=Price setting and inflation dynamics: did EMU matter |access-date=13 March 2011 |archive-url=https://web.archive.org/web/20110725112443/http://www.ecb.eu/events/pdf/conferences/emu/sessionV_Angeloni_Paper.pdf |archive-date=25 July 2011 |url-status=dead }}</ref><ref>{{cite web|url=http://opus.zbw-kiel.de/volltexte/2009/7575/pdf/200906dkp.pdf |title=Price convergence in the EMU? Evidence from micro data |access-date=2 October 2009}}</ref> Other studies have found evidence of price convergence,<ref>{{cite web|url=http://faculty.london.edu/hrey/IMRRtele.pdf |title=One TV, One Price? |access-date=17 July 2011}}</ref><ref>{{cite web|url=http://mpra.ub.uni-muenchen.de/835/1/MPRA_paper_835.pdf |title=One Market, One Money, One Price? |access-date=17 July 2011}}</ref> in particular for cars.<ref>Gil-Pareja, Salvador, and Simón Sosvilla-Rivero, [http://www.fedea.es/pub/Papers/2005/dt2005-22.pdf "Price Convergence in the European Car Market"], FEDEA, November 2005.</ref> A possible reason for the divergence between the different studies is that the processes of convergence may not have been linear, slowing down substantially between 2000 and 2003, and resurfacing after 2003 as suggested by a recent study (2009).<ref>{{cite web |url=http://www.wiso.uni-hamburg.de/hepdoc/macppr_4_2009.pdf |first1=Ulrich |last1=Fritsche |first2=Sarah |last2=Lein |first3=Sebastian |last3=Weber |title=Do Prices in the EMU Converge (Non-linearly)? |publisher=University of Hamburg, Department Economics and Politics Discussion Papers, Macroeconomics and Finance Series |date=April 2009 |access-date=28 December 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110719105515/http://www.wiso.uni-hamburg.de/hepdoc/macppr_4_2009.pdf |archive-date=19 July 2011 }}</ref>

====Tourism====
A study suggests that the introduction of the euro has had a positive effect on the amount of tourist travel within the EMU, with an increase of 6.5%.<ref>{{cite journal|last1=Gil-Pareja|first1=Salvador|last2=Llorca-Vivero|first2=Rafael|last3=Martínez-Serrano|first3=José|title=The Effect of EMU on Tourism|ssrn=983231|journal=Review of International Economics |volume=15 |issue=2 |pages=302–312 |date=May 2007|doi=10.1111/j.1467-9396.2006.00620.x|s2cid=154503069}}</ref>

==Exchange rates==
===Flexible exchange rates===

The ECB targets [[interest rate]]s rather than [[exchange rate]]s and in general, does not intervene on the foreign exchange rate markets. This is because of the implications of the [[Mundell–Fleming model]], which implies a central bank cannot (without [[capital control]]s) maintain interest rate and exchange rate targets simultaneously, because increasing the [[money supply]] results in a [[Currency appreciation and depreciation|depreciation]] of the currency. In the years following the [[Single European Act]], the EU has liberalised its capital markets and, as the ECB has [[inflation targeting]] as its [[monetary policy]], the exchange-rate regime of the euro is [[floating exchange rate|floating]].

===Against other major currencies===

The euro is the second-most widely held [[reserve currency]] after the U.S. dollar. After its introduction on 4 January 1999 its exchange rate against the other major currencies fell reaching its lowest exchange rates in 2000 (3 May vs [[Pound sterling|sterling]], 25 October vs the [[U.S. dollar]], 26 October vs [[Japanese yen]]). Afterwards it regained and its exchange rate reached its historical highest point in 2008 (15 July vs US dollar, 23 July vs Japanese yen, 29 December vs sterling). With the advent of the global financial crisis the euro initially fell, to regain later. Despite pressure due to the [[European sovereign-debt crisis]], the euro remained stable.<ref>{{cite news |last1=Kirschbaum |first1=Erik |title=Schaeuble says markets have confidence in euro |work=Reuters |url=https://www.reuters.com/article/us-eurozone-schaeuble/schaeuble-says-markets-have-confidence-in-euro-idUSTRE77L0LK20110822 |access-date=28 March 2018}}</ref> In November 2011 the euro's exchange rate index&nbsp;– measured against currencies of the bloc's major trading partners&nbsp;– was trading almost two percent higher on the year, approximately at the same level as it was before the crisis began in 2007.<ref>{{cite news |url=http://uk.reuters.com/article/uk-markets-euro-mystery-idUKLNE7AE02520111115 |archive-url=https://web.archive.org/web/20151230043335/http://uk.reuters.com/article/uk-markets-euro-mystery-idUKLNE7AE02520111115 |url-status=dead |archive-date=30 December 2015 |title= Puzzle over euro's 'mysterious' stability |work=[[Reuters]] |date= 15 November 2011}}</ref> In mid July 2022, the euro and the US dollar traded at par for a short period of time during an episode of dollar [[Currency appreciation and depreciation|appreciation]].<ref name="NYTimes-2022" /> On 11 July 2024, it recorded a new high against the Japanese yen during a long period of [[Currency appreciation and depreciation|depreciation]] of the latter.<ref>{{Cite web |last=日本放送協会 |date=2024-07-11 |title=円相場 対ユーロで最安値を更新 {{!}} NHK |url=https://www3.nhk.or.jp/news/html/20240711/k10014509161000.html |access-date=2024-07-16 |website=NHKニュース}}</ref><ref>{{Cite web |date=2024-07-07 |title=Weekly Pairs in Focus - July 7 (Charts) |url=https://dailyforex.com/forex-technical-analysis/2024/07/pairs-in-focus-this-week-8th-july-13th-july-2024/214557 |access-date=2024-07-12 |website=DailyForex |language=en}}</ref><ref>{{Cite web |date=2024-07-01 |title=Japanese yen sinks to record low against euro |url=https://www.bastillepost.com/global/article/3958525/ |access-date=2024-07-01 |website=www.bastillepost.com}}</ref>

{{multiple image
| align     = center
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| width = 310
| footer_align = center
| footer = Euro exchange rate against US dollar (USD), sterling (GBP) and Japanese yen (JPY), starting from 1999.
| image1 = Euro exchange rate to USD.svg
| alt1 =
| caption1 =
| image2 = Euro exchange rate to GBP.svg
| alt2 =
| caption2 =
| image3 = Euro exchange rate to JPY.svg
| alt3 =
| caption3 =
}}

*Current and historical exchange rates against 32 other currencies (European Central Bank): ''[https://www.ecb.int/stats/exchange/eurofxref/html/index.en.html link]''

{{Exchange Rate|EUR|SEK|PLN|style=navbox}} <!-- The major world currencies are included "as standard", so this list is just for the two major European currencies  not on the default list. For other currencies, see the corresponding table at its article, which will give its rate v the euro. -->

==Political considerations==
Besides the economic motivations to the introduction of the euro, its creation was also partly justified as a way to foster a closer sense of joint identity between European citizens. Statements about this goal were for instance made by [[Wim Duisenberg]], European Central Bank Governor, in 1998,<ref>{{cite book |title=Global Finance After the Crisis|date= 2013|quote=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.}}</ref> [[Laurent Fabius]], French Finance Minister, in 2000,<ref>{{cite news |newspaper=Financial Times|date=24 July 2000|quote=Thanks to the euro, our pockets will soon hold solid evidence of a European identity|title=European identity}}</ref> and [[Romano Prodi]], President of the European Commission, in 2002.<ref>{{cite book|title=Speech to the European Parliament|date=16 January 2002 |quote=The euro is becoming a key element in peoples sense of shared European identity and common destiny.}}</ref> However, 15 years after the introduction of the euro, a study found no evidence that it has had any effect on a shared sense of European identity.<ref name=EER>{{cite journal |author1=Franz Buscha |title=Can a common currency foster a shared social identity across different nations? The case of the euro|journal=European Economic Review|date=November 2017 |volume=100 |pages=318–336 |url=http://westminsterresearch.wmin.ac.uk/19659/1/EU_identity_V17_EER_revisions_2ndRound.pdf |doi=10.1016/j.euroecorev.2017.08.011|s2cid=102510742 }}</ref>

Public support of Euro by country according to [[Eurobarometer]] 2024:<ref name="i768">{{cite report | title=Public opinion in the European Union: first results : report. | date=2024 | publisher=Publications Office of the European Union | doi=10.2775/437940 | url=https://data.europa.eu/doi/10.2775/437940 | page = 26 | author1=European Commission. Directorate General for Communication. }}</ref>
{{Sticky header}}
{| class="wikitable sortable sticky-header"
! Country !! For % !! Against %
|-
| {{flaglist|Austria}}	||	66  ||  27
|-
| {{flaglist|Belgium}}	||	82  ||  15
|-
| {{flaglist|Bulgaria}}	||	37  ||  47
|-
| {{flaglist|Croatia}}	||	71  ||  24
|-
| {{flaglist|Cyprus}}	||	80  ||	16
|-
| {{flaglist|Czech Republic}}	||	30  || 62
|-
| {{flaglist|Denmark}}	||	34  ||	58
|-
| {{flaglist|Estonia}}	||	90  ||	8
|-
| {{flaglist|Finland}}	||	90  ||	7
|-
| {{flaglist|France}}	||	74  ||	20
|-
| {{flaglist|Germany}}	||	81  ||	14
|-
| {{flaglist|Greece}}	||	80  ||	16
|-
| {{flaglist|Hungary}}	||	65  || 28
|-
| {{flaglist|Ireland}}	||	88  ||	7
|-
| {{flaglist|Italy}}	||	70  ||	23
|-
| {{flaglist|Latvia}}	||	85  ||	8
|-
| {{flaglist|Lithuania}}	||	78  ||	15
|-
| {{flaglist|Luxembourg}}	||	90  ||	8
|-
| {{flaglist|Malta}}	||	89  ||	8
|-
| {{flaglist|Netherlands}}	||	84  ||	13
|-
| {{flaglist|Poland}}	||	36  ||	51
|-
| {{flaglist|Portugal}}	||	81  ||	13
|-
| {{flaglist|Romania}}	||	54 	||	37
|-
| {{flaglist|Slovakia}}	||	86  ||	8
|-
| {{flaglist|Slovenia}}	||	92  ||	7
|-
| {{flaglist|Spain}}	||	83  ||	11
|-
| {{flaglist|Sweden}}	||	37  ||	56
|}

==''Euro'' in various official EU languages==
{{Main|Language and the euro}}
The formal titles of the currency are ''euro'' for the major unit and ''cent'' for the minor (one-hundredth) unit and for official use in most eurozone languages; according to the ECB, all languages should use the same spelling for the nominative singular.<ref>{{cite web|url=http://www.ecb.int/pub/pdf/conrep/cr200705en.pdf|title=European Central Bank, Convergence Report|date= May 2007|quote=The euro is the single currency of the member states that have adopted it. To make this singleness apparent, Community law requires a single spelling of the word ''euro'' in the nominative singular case in all community and national legislative provisions, taking into account the existence of different alphabets.|access-date=29 December 2008}}</ref> This may contradict normal rules for word formation in some languages.

Bulgaria has negotiated an exception; ''euro'' in the Bulgarian Cyrillic alphabet is spelled {{lang|bg|eвро}} ({{transliteration|bg|evro}}) and not {{script|Cyrl|eуро}} (''{{transliteration|Cyrl|euro}}'') in all official documents.<ref>{{cite news|author=Elena Koinova |url=http://sofiaecho.com/2007/10/19/656777_evro-dispute-over-portuguese-foreign-minister |archive-url=https://web.archive.org/web/20110603212303/http://sofiaecho.com/2007/10/19/656777_evro-dispute-over-portuguese-foreign-minister |archive-date=3 June 2011 |url-status=dead |title="Evro" Dispute Over&nbsp;– Portuguese Foreign Minister&nbsp;– Bulgaria |newspaper=The Sofia Echo |date=19 October 2007 |access-date=17 July 2011}}</ref> In the Greek script the term {{lang|el|ευρώ}} ({{transliteration|el|evró}}) is used; the Greek "cent" coins are denominated in {{lang|el|λεπτό/ά}} ({{transliteration|el|leptó/á}}). Official practice for English-language EU legislation is to use the words euro and cent as both singular and plural,<ref>European Commission. "Spelling of the words "euro" and "cent" in official community languages as used in community legislative acts" (PDF). Retrieved 12 January 2009.</ref> although the European Commission's [[Directorate-General for Translation (European Commission)|Directorate-General for Translation]] states that the plural forms ''euros'' and ''cents'' should be used in English.<ref>For example, see {{Cite web |publisher=European Commission Directorate-General for Translation |title=English Style Guide |at=para.{{nbsp}}20.8 |quote=''The euro.'' Like 'pound', 'dollar' or any other currency name in English, the word 'euro' is written in lower case with no initial capital and, where appropriate, takes the plural 's' (as does 'cent'). |url=http://ec.europa.eu/translation/writing/style_guides/english/style_guide_en.pdf |archive-url=https://web.archive.org/web/20101205092625/http://ec.europa.eu/translation/writing/style_guides/english/style_guide_en.pdf |archive-date=5 December 2010 |date=29 June 2010}}</ref>
The word 'euro' is pronounced differently according to pronunciation rules in the individual languages applied; in German {{IPA|de|ˈɔʏʁo|}}, in English {{IPAc-en|ˈ|j|ʊər|oʊ}}, in French {{IPA|fr|øʁo|}}, etc.
<!-- Advice to editors: this paragraph is intended to be just a summary. If you wish to add material, please consider using the "Linguistic issues" article to do so.-->

In summary:
{| class="wikitable"
! Language(s)
! Name
! [[International Phonetic Alphabet|IPA]]
|-
| [[Language and the euro|In most EU languages]]
| euro
| {{IPA|hr|ěuro|lang}}, {{IPA|cs|ˈɛuro|lang}}, {{IPA|da|ˈœwʁo|lang}}, {{IPA|nl|ˈøːroː|lang}}, {{IPA|et|ˈeu̯ro|lang}}, {{IPA|fi|ˈeu̯ro|lang}}, {{IPA|fr|øʁo|lang}}, {{IPA|it|ˈɛuro|lang}}, {{IPA|pl|ˈɛwrɔ|lang}}, {{IPA|pt|ˈewɾɔ|lang}} or {{IPA|pt|ˈewɾu|}}, {{IPA|sk|ˈewrɔ|lang}}, {{IPA|es|ˈewɾo|lang}}
|-
| [[Bulgarian language|Bulgarian]]
| {{lang|bg|евро}} ''evro''
| {{IPA|bg|ˈɛvro|lang}}
|-
| [[German language|German]]
| {{lang|de|Euro}}
| {{IPA|de|ˈɔʏʁo|}}
|-
| [[Greek language|Greek]]
| {{lang|el|ευρώ|evró}}
| {{IPA|el|eˈvro|}}
|-
| [[Hungarian language|Hungarian]]
| {{lang|hu|euró}}
| {{IPA|hu|ˈɛuroː|}} or {{IPA|hu|ˈɛu̯roː|}}
|-
| [[Latvian language|Latvian]]
| ''euro'' or {{lang|lv|eiro}}
| {{IPA|lv|ɛìro|}}
|-
| [[Lithuanian language|Lithuanian]]
| {{lang|lt|euras}}
| {{IPA|lt|ˈɛʊrɐs|}}
|-
| [[Maltese language|Maltese]]
| {{lang|mt|ewro}}
| {{IPA|mt|ˈɛwrɔ|}}
|-
| [[Slovene language|Slovene]]
| {{lang|sl|evro}}
| {{IPA|sl|ˈéːʋrɔ|}}
|}

For local phonetics, cent, use of plural and amount formatting (€6,00 or 6.00&nbsp;€), see [[Language and the euro#Written conventions for the euro in the languages of EU member states|Language and the euro]].

==See also==
* [[Captain Euro]], ''[[The Raspberry Ice Cream War]]''
* [[Causes of the European debt crisis]]
* [[Controversies surrounding the eurozone crisis]]
* [[Currency union]]
* [[Digital euro]]
* [[Economic and Monetary Union of the European Union]]
* [[European debt crisis]]
* [[European integration]]
* [[History of the European Union]]
* [[List of acronyms associated with the eurozone crisis]]
* [[List of currencies in Europe]]
* [[Proposed long-term solutions for the eurozone crisis]]
* [[Withdrawal from the eurozone]]

== Notes ==
{{NoteFoot}}
{{notelist}}

==References==
{{reflist}}

==Further reading==
* {{cite journal |author2=Taylor, Stephen J. |author3=Wang, Yaw-Huei |date=May 2007 |title=The Euro and European Financial Market Dependence |journal=Journal of Banking and Finance |volume=51 |issue=5 |pages=1461–1481 |doi= 10.1016/j.jbankfin.2006.07.014|ssrn=924333 |last1=Bartram |first1=Söhnke M. |url=http://ntur.lib.ntu.edu.tw/news/agent_contract.pdf}}
* {{cite journal |author2=Karolyi, G. Andrew |date=October 2006 |title=The Impact of the Introduction of the Euro on Foreign Exchange Rate Risk Exposures |journal=Journal of Empirical Finance |volume=13 |issue=4–5 |pages=519–549 |doi= 10.1016/j.jempfin.2006.01.002|ssrn=299641 |last1=Bartram |first1=Söhnke M.}}
* {{Cite book|last1=Baldwin |first1=Richard |first2=Charles |last2=Wyplosz |title=The Economics of European Integration |location=New York |publisher=McGraw Hill |year=2004 |isbn=978-0-07-710394-1}}
* {{Cite book|last1=Buti |first1=Marco |first2=Servaas |last2=Deroose |first3=Vitor |last3=Gaspar |first4=João |last4=Nogueira Martins |title=The Euro |location=Cambridge |publisher=Cambridge University Press |year=2010 |isbn=978-92-79-09842-0}}
* {{cite web|last=Jordan|first=Helmuth|year=2010|url=http://dorrance.stores.yahoo.net/feeurzufleuk.html|title=Fehlschlag Euro|publisher=Dorrance Publishing|access-date=28 January 2011|archive-url=https://web.archive.org/web/20100916233209/http://dorrance.stores.yahoo.net/feeurzufleuk.html|archive-date=16 September 2010|url-status=dead}}
*{{cite book|last1=Simonazzi|first1=A. |last2=Vianello |first2=F. |chapter=Financial Liberalization, the European Single Currency and the Problem of Unemployment |editor1-last=Franzini |editor1-first=R. |editor2-last=Pizzuti |editor2-first=R.F.|title=Globalization, Institutions and Social Cohesion|date=2001|publisher=Springer|isbn=978-3-540-67741-3}}

==External links==
{{Sister project links}}
* [https://europa.eu/european-union/about-eu/euro_en European Union – Euro]
* [https://ec.europa.eu/info/business-economy-euro/euro-area_en European Commission – Euro Area]
* [https://www.ecb.europa.eu/euro/html/index.en.html European Central Bank – Euro]
* [https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/index.en.html European Central Bank – Euro Exchange Rates]

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