Euro currency history. Currency sign. Designation of the main monetary units of the world. Cyprus. Coins of Cyprus
The euro appeared in history as a means of payment for the countries of the eurozone. These are 19 participating countries, nine states where the euro is recognized as a national currency, seven of them are located directly in Europe. The last nine countries cannot influence the monetary policy of the ECB. In total, the euro is used by a population of 320 million people and, in terms of the total volume of all cash in circulation, is even ahead of the US dollar. Counting everything, the history of the euro has placed it as the most important currency in the world. As of autumn 2013, the euro in cash amounted to €951 billion.
From the first day of 1999, the history of the emergence of the euro started (about the history of the emergence of money in general,), but it was only a non-cash form. Exactly three years later, in 2002, it was launched in cash. It became a direct replacement for the former currency of Europe, the ECU, which was in use until 1998. The exchange rate between them was 1:1.
From the beginning of history, the Council of European Central Banks, more precisely the European System of Central Banks (ESCB) has been called upon to monitor the issuance of banknotes and coins, to conduct all operations that support the euro as the single currency of the EU, and to decide all the main issues regarding the exchange rate, issue and circulation of the currency. The full head of the system is the Central Bank of Europe, independent of any structures. It is he who has full rights to accept and implement all issues of the euro and its history. The center of the entire banking system is located in Frankfurt am Main, Germany, where the main office of the ECB is located and all the most important decisions are made.
Actually, all members of the European Union can enter the eurozone, subject to full compliance with special criteria. They define convergence criteria and macroeconomic indicators, on the basis of which only the ECB makes the final decision on the inclusion of a state in the eurozone. In fact, any country must go a long way to be included in the eurozone, to enter itself into the history of the creation of the euro and the common economic space. In addition, spend two years under strict supervision, during which the exchange rate of the national currency is regulated. Yet the final step is full integration into the European Union.
To understand the volume and importance of the euro as a world currency, you can pay attention to the data on the interbank circulation of the euro. So for the year since May 2013, the euro has risen to a level slightly above 30%. For comparison, the share of the US dollar is 42%.
Banknotes
One euro is divided into one hundred cents. Eurozone cents do not have their own determinant, so the history of the euro currency has defined them simply as hundredths of a euro. They are sometimes referred to as euro cents for clarity. Coins are issued in denominations of 0.01€, 0.02€, 0.05€, 0.1€, 0.2€, 0.5€. In addition, coins of 1€ and 2€ are minted.
It should be noted that not only the ECB, but also the National Banks of the EU countries can issue cash. If banknotes are issued in a single format, then the history of the creation of euro coins allows each state to make an individual design, but only for the reverse. The reverse of the coins is determined by a pattern with national motifs and history, and the denomination and image are strictly declared on the front. Some states simply do not mint unused moments of the lowest denominations of 1 and 2 euro cents. For example, in Austria, prices are not adjusted and one-cents are in demand, but in the rest of the EU, pricing is most often done in such a way as to completely eliminate the need to use small denominations.
Regardless of the location and subordination of the mint that minted the coin, and what pattern it has on the reverse side, it still remains in use everywhere.
Euro banknotes have a single format, and therefore they are issued by all Central Banks in the same way. The 200€ and 500€ banknotes are limited edition. This can be explained by the history of the growth of the euro, in a short time after the appearance they became redundant due to the inappropriateness of their use in cash. Only a limited number of banks print them, but such banknotes are recognized throughout the eurozone. The remaining banknotes (5, 10, 20, 50, 100 euros) are used everywhere in the eurozone states that have recognized the euro as their legal tender.
All denominations differ in design and color, size, starting from a denomination of 1 € 120x62 mm, gradually increasing to 160x82 mm for a denomination of 500 €. The color scheme when listing the entire range of denominations is as follows: gray, red, blue, orange, green, yellow-brown, purple. Also, the design style changes, reflecting the history of the euro, and depicts: Antiquity, Romanesque, Gothic, Renaissance, Baroque and Rococo, Industrial era, Modernity.
The final design has changed several times and is still updated with some details. For example, according to the statement of the Central Bank of Bulgaria, the Cyrillic spelling "Euro" will now be indicated on banknotes. In addition, banknotes that have lost their appearance and strength are being replaced, and new security systems are being introduced to prevent the spread of fakes.
Euro symbol (€)
The euro symbol and its appearance are somewhat overshadowed by ambiguities in the history of creation and adoption. According to the official version, the euro symbol was developed by a group of four experts. The option was chosen from many others received in the course of social surveys and proposals. The symbol is based on the letter of the Greek alphabet epsilon, which is credited with the symbolism of reliability and stability in combination with two parallel lines. It is stron that the names of the four experts who are credited with creating the symbol are not disclosed or published. At the same time, the right to authorship of the symbol is disputed by Arthur Eisenmenger, according to whom, he is the author of the symbol, and he is, first of all, a common symbol of all of Europe and its history.
The logo was standardized simultaneously with the emergence of the euro, has strict proportions and image rules that define all the characteristics, angles and shapes of the symbol. At the same time, the exact image is actually preserved only on banknotes and official designations. In various fonts available to the general user, the symbol is redrawn only in approximation. The letter “c” is taken as the basis with a double strikethrough, moreover, not always straight lines.
On banknotes, in addition to the symbol, there is an encoded serial number, the first letter of which determines the country of issue.
Launch into circulation
The history of the euro currency began in 1999, when it appeared for cashless payments. It took three years to prepare a plan and take measures to introduce cash and issue currency in the required volume. In 2002, two whole months (January and February) were allocated, during which the population had to convert all cash in the previous national currencies into euros at the established rates. After that, only the euro became the main legal tender, and the previous units of account lost such a status in history.
A total of 12 countries initially joined the eurozone, as well as several countries in which the euro naturally became legal tender simply due to the close connection of the local currency with the EU member states.
It is noteworthy that even at the very beginning of the history of the creation of the euro, England and the Kingdom of Denmark refused to switch to a single currency by default, trying to preserve their national banknotes. In Denmark, a referendum was held among the population, according to the results of which the majority was against the introduction of the euro. In addition, by means of a referendum, the people did not allow Sweden to give up its crown.
After 2002, new countries joined the Eurozone, increasing the total number of participants in the history of the euro to 29, including those countries that are not officially members of the European Union but still use the euro. New eurozone members were added in 2007 (Slovenia), 2008 (Cyprus, Malta), 2009 (Slovakia), 2011 (Estonia), 2014 (Latvia) and finally Lithuania joined in 2015.
In the future, the history of the spread of the euro will receive an impetus only in 2019, this is due to the tough conditions that apply to applicants. For several years, to be more precise, two, the country must be a participant in EMR-2, and then only after checking for compliance with all the Maastricht criteria. At the moment, only Denmark is currently in EMR-2. Some EU countries have not yet established when the euro will come into use as a single currency, and whether it will be introduced in principle.
The benefits of a single currency
The story of the creation of the euro happened not spontaneously and not thoughtlessly. It is based on many important problems that the euro is designed to solve. But the single currency has both supporters and opponents. All the advantages and positive moments lie on the surface, because the euro copes with all the tasks. Opponents are convinced that the unification of the economies of so many countries with their own characteristics and atmosphere into a single monetary system will create negative consequences. However, all the indicated problems are assumed in the course of further euro history, arguing this by the accumulation of various shortcomings of the single currency system and relations in the EU.
Exchange operations without risk
The most important advantage of the euro is the absolute leveling of exchange rates in many countries and, accordingly, the risks that may be associated with this. More precisely, this is a reduction in the risks of investors who are going to distribute their funds to other countries that are members of the eurozone.
Usually, in the presence of a large number of national currencies, a foreign investor, in addition to the risks associated directly with the subject of investment, may lose a significant part of the profit, or even completely, only due to unforeseen fluctuations in the exchange rate. In a situation where only one single currency and one history of the euro exchange rate is used in the countries of interest to the inverter, there are no such problems in principle.
Considering that in the Union of Europe the economic environment of individual countries and the entire plow is very dependent on the domestic export market, the euro becomes simply the perfect solution to a large number of problems that were previously.
Pessimists see the danger of this state of affairs in the long term. Their fears are mainly about the gradual and inevitable redistribution of markets as the history of the euro develops, provided that there are more liberal business conditions in some countries relative to others. They predict a gradual concentration of production and investment activities only in certain regions, while in the rest there will be a large outflow of capital and the natural curtailment of many social programs.
No conversion costs
The absence of currencies for exchange transactions in vast territories and in many countries at the same time also has a positive effect. Previously, commissions were charged from foreign exchange within the country for the operation of export and import enterprises. Commissions on their own are not significant, but the total benefit makes itself felt. In the absence of fees charged by banks throughout the eurozone already justifying the creation and further history of the euro, significant funds do not leave the real economy.
The transfer of funds, especially between member countries of the eurozone, is carried out at the same rates as within the country. This removes a significant burden of costs for production located in different countries of the eurozone and also leaves significant amounts of funds in the economy. Commissions remain high enough only if online banking is used, as well as in France, where, bypassing the requirements of the ECB, additional payments for international transfers are still introduced.
More resilient financial markets
A single currency system makes financial markets more attractive, increases their liquidity and flexibility in relation to almost all possible transactions. Eliminating the unnecessary financial burden on investors focused on financial instruments increases competitiveness, and then has a positive effect on the effectiveness of financial relationships. It is also important that the history of the growth of the euro, its reliability and the rules of circulation in the eurozone facilitate the maintenance of the public debt of each country separately.
Price parity
What the main stake is being made on is that the history of the euro currency will finally level out the difference in prices for various goods, eliminate the very possibility of conducting arbitrage operations. Consequently, it will not be possible to make a profit only on the difference in prices of goods in different countries, speculative dealers will leave, and free routes for the distribution of goods will open. Best of all, this will affect the consumer, because it will be possible to choose goods by their quality and not worry about the fact that some of them have unreasonable markups.
Competitive refinancing
The transition to a single currency has a positive effect on the refinancing system. The history of the creation of the euro, not least developed precisely due to the fact that banks could freely receive loans and refinance abroad, without fear of risks associated with exchange rates and the behavior of National Banks. One of the biggest consequences is the natural decrease in the interest rate, because everything is tied to the competitive relationship of the Central Bank of the countries, and each of them strives to attract new customers in the banking sector.
Euro as peg currency
You can divide all countries into two categories according to the way the local currency is pegged to the euro. The first category is countries that participate in the Exchange Rate Mechanism (EMR-2), in the format of which a narrow corridor is allocated where the exchange rate should remain. The fulfillment of this rather simple condition within two years is a prerequisite for the country's entry into the eurozone and inscribe itself in the history of the development of the euro. At the moment, only Denmark participates in EMR-2.
The second category of countries is all the current members of the European Union that are not included in the euro zone, as well as other countries in the world that have historically developed a relationship between the national currency and the currencies of European countries. For example, the money of Bosnia, Bulgaria and Estonia were pegged to the German mark, while many countries in Africa were heavily pegged to the franc. After the start of the history of the euro, all these countries also switched to pegging to it.
Euro as a reserve currency
Even before the introduction of the euro, the German mark and the French franc were valued and used as reserve currencies. After that, this role passed to the euro, especially since the history of the growth of the euro was really stormy and effective, then the interest in the euro as a reserve currency only increased. At the moment, the euro has gained momentum and the interest in it is not decreasing, because it is the second significant world reserve currency after the US dollar. The share of the euro in the reserve funds of the countries of the world is 24.4% for 2013.
As expected by the EU community, the history of world financial relations perceived the single currency euro very well. There are prospects, and huge advantages that are already manifesting themselves. There are some fears, but they are mostly based on fears, they are situations that can be easily avoided.
Euro (currency designation: €; bank code: EUR) is the official currency of the countries of the European Union (EU), is in circulation on the territory of 15 states known as the "Eurozone" (Austria, Belgium, Cyprus, Finland, France, Germany, Greece , Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovenia, Spain). The euro is also used in 9 other countries of the world, 7 of which are in Europe. Thus, it is the common currency of more than 320 million Europeans. With territories using euro-based currencies, nearly 500 million people around the world depend on the euro. With a turnover of 610 billion euros since December 2006, the euro is the currency with the largest total amount of cash in circulation in the world, surpassing even the US dollar.
In 1999, the world financial markets were offered the euro as a settlement currency, and from January 1, 2002, banknotes and coins were put into circulation. The Euro has replaced the previous European Currency Unit (ECU) at a one-to-one ratio.
The Frankfurt-based European Central Bank (ECB) and the Eurosystem (consisting of the central banks of the countries of the Eurozone) govern and manage all euro transactions. As an independent central bank, the ECB has the exclusive right to determine monetary policy. The Eurosystem participates in the issuance of banknotes and coins, as well as their distribution to all countries, and in the operation of the settlement systems of the Eurozone.
While all European Union (EU) countries can be admitted to the Eurozone if they agree to certain monetary requirements, not all EU members have chosen to accept this currency. All states that joined the EU before the entry into force in 1993 of the Maastricht Treaty pledged to accept the euro according to the exchange rate.
This treaty obliged the current members to put the euro into circulation; however, Great Britain and Denmark secured for themselves the abolition of this requirement.
Sweden refused to adopt the euro in a 2003 referendum and bypassed the requirement to adopt the euro by not supporting this membership criterion. In addition, three microstates of Europe (Vatican, Monaco and San Marino), although they are members of the European Union, have adopted the euro as the single currency of the participating countries. Andorra, Montenegro and Kosovo adopted the euro unilaterally, although they were also not part of the EU.
coins
The euro is divided into 100 cents (sometimes called euro cents, especially to distinguish them from US cents or the former currency in a particular country). All euro coins in circulation (including €2 commemorative coins) have the same denomination (value) side showing the first 15 EU countries. From 2007 or 2008 (depending on the country that issued the coin), this "old" map will be replaced by a map of Europe showing non-EU countries such as Norway. The coins also have a national side, with a special image chosen by the country that issued the coin. Euro coins from any country can be freely used in all states that have adopted the euro.
Euro coins are issued in denominations of €2, €1, €0.50, €0.20, €0.10, €0.05, €0.02, and €0.01. In the Netherlands and Finland, by law, all cash transactions are rounded to the nearest five cents to avoid the use of €0.02 and €0.01 (See also the linguistics article on the euro.)
The €2 commemorative coins were issued with changes in the design of the national side of the coin in connection with the hosting of the Summer Olympic Games in Greece. These two euro coins are legal tender throughout the Eurozone. Coins of a different denomination were also issued, but were not intended for widespread circulation. Later coins can only be legally used in the country of origin.
Germany
Greece
Italy
Spain
Cyprus
France
Netherlands
Portugal
Austria
Ireland
Belgium
San Marino
Slovenia
Luxembourg
Malta
Monaco
Vatican
Finland
Banknotes
All euro banknotes have the same side design for each denomination. Banknotes are issued in denominations of €500, €200, €100, €50, €20, €10, €5. The design of each of them is connected with the general theme of European architecture of different periods. On the front side of the banknote, windows or gates are depicted, and on the reverse side - bridges. It is noteworthy that these architectural objects do not actually exist, so as not to provoke envy and disputes when choosing those cultural monuments that should be depicted on banknotes. Some higher denominations, such as the €500, are not issued in some countries, although they remain legal tender in the Eurozone.
Clearing system, electronic payment transfer system.
All money transfers within Eurozone countries should cost the same as transfers within the same country. This also applies to retail payments, although the ECB may use some other payment methods.
Credit/debit card payments and cash withdrawals from ATMs across Europe are also subject to the same billing. The ECB has not standardized the processing of payments for "paper" money orders such as cheques; they are only valid within a single country.
The ECB has installed the TARGET (Trans-European Automated Real-Time Gross Settlement) clearing system for large transactions in euros.
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Graphic image of the euro
A special graphic euro sign (€) was designed based on the results of a public opinion poll, selecting 2 options out of ten. And then the European Commission chose one of them as the final option. The winning project was created by the Belgian Alain Billier. The official version of the euro sign's creation is disputed by Arthur Eisenmenger, a former leading graphic designer for the EEC, who claims to have created the sign as a common symbol for Europe.
According to the European Commission, the symbol is "a combination of the Greek letter 'upsilon', representing the importance of European civilization, the letter 'E' (for 'Europe') and parallel lines in the form of an equal sign, representing the stability of the euro."
In addition, the European Commission calculated the exact dimensions of the euro logo, indicating the colors of the background and the sign itself. Although the Commission insisted on this particular spelling of the symbol, most of the designers have made it clear that they plan to create their own versions.
The placement of a graphic image of the currency in all countries is different. There are no official standards for the location of the euro sign.
Another advantage of the character chosen in the end is that it is easy to type on the keyboard by typing the capital letter "C", pressing the space bar and overlaying the "equal" sign.
Common Economic and Monetary Space
History (1990 - today)
Common provisions for the euro in the European Union were established by the 1992 Maastricht Treaty to create economic and monetary unity. In order to switch to a new currency, EU countries had to meet strict criteria. For example, the country's budget deficit should not exceed three percent of GDP, the debt ratio should be less than 6 percent of GDP, low inflation and interest rates close to the EU average should be observed. Under the Maastricht Treaty, Great Britain and Denmark received an exemption from the transition to a single monetary area, which led to the creation of the euro.
Economists involved in the creation of the euro - Robert Mundel, Wim Duesenberg, Robert Tollison, Neil Dowling, Fred Arditti and Tomaso Padoa-Schiopa (Macroeconomic theory, see below.)
Due to the difference in national exchange rates, all settlements between national currencies had to be carried out through conversion to euros. The exact value of these currencies in euros (at the exchange rates at the time of the introduction of the euro) is shown to the right.
The exchange rates were determined by the Council of the European Union, based on the market rate on December 31, 1998, so that one ecu was equal to one euro. (The European currency unit was the unit of account of the EU, it existed on the basis of the national currencies of the participating countries; the ecu was not an independent currency.) The pan-European agreement 2866/98 (EC) of December 31, 1998 established such exchange rates. This could not have happened earlier, because at that time the ecu was closely linked to the exchange rate of other currencies (especially the pound sterling).
Otherwise, the procedure for the final recalculation of the drachma into euros took place, since then the euro had already existed for two years. The conversion rate for the first eleven currencies was determined a couple of hours before the introduction of the euro, for the Greek drachma it was set a few months earlier, under agreement 1478/2000 (EC) of June 19, 2000.
On the night of January 1, 1999, the introduction of the euro into non-cash payments (traveler's checks, electronic transfers, banking operations, etc.) took place. When the national currencies of the countries in the Eurozone ceased to exist separately, their exchange rates were fixed relative to each other, practically making them simple non-decimal parts of the euro. So the euro became a replacement for the ecu. However, banknotes and coins of the old currencies remained in circulation as legal tender until the issuance of new banknotes and coins in January 2002.
The replacement period, during which old banknotes and coins were exchanged for the euro, lasted about two months, until February 28, 2002. The official date for the termination of the use of national currencies as legal tender was different for all countries. The very first country was Germany. On December 31, 2001, the stamp officially ceased to be used, although the exchange period lasted for another two months. February 28, 2002 is the end date of the replacement, when all national currencies ceased to be legal means of payment in the countries of the Eurozone. However, even after the official date, all currencies continued to be accepted in the state central banks of European countries with a restriction of several years or no restrictions at all, for example, in Austria, Germany, Ireland and Spain. The very first coins to go out of circulation were the Portuguese escudos, which depreciated after December 31, 2002, although banknotes are exchangeable until 2022.
Slovenia joined the Eurozone on January 1, 2007, followed by Malta and Cyprus on January 1, 2008.
Eurozone
- The Euro is the official currency in Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia and Spain. These 15 countries together make up the Eurozone or the euro area. Less officially, it is also called "Euroland" or "Eurogroup". In addition to these territories, the geography of the euro as the official currency also extends to the colonies: French Guiana, Reunion, Saint Pierre and Miquelon, Guadeloupe, Martinique, Saint Bartholomew, Saint Martin, Mayotte and the uninhabited island of Clipperton, French Southern and Antarctic Territories; Portuguese Autonomous Regions Azores and Madeira; Spanish Canary Islands.
- Based on a bilateral agreement, the European microstates of Monaco, San Marino and the Vatican City mint their own euro coins on behalf of the European Central Bank. However, they are severely limited in the total amount of coins they can issue.
- Andorra, Montenegro, the Republic of Kosovo, Akrotiri and Dhekelia adopted the euro as the official currency of investment and monetary transactions without participation in the European system of central banks and without the right to issue coins. Andorra entered into the process of negotiating an agreement on the issuance of money in the same way as in the case of the microstates of Europe.
- The currencies of several dominions and former colonies of EU states depend on the euro. Among them are French Polynesia, New Caledonia, Wallis and Futuna (CFA franc), Cape Verde, Comoros and fourteen states of Central and West Africa (CFA franc). See "Currencies Dependent on the Euro".
- Even though the euro is not legal tender in Denmark and the UK, some shops in these countries accept the euro, especially international department stores in major cities and in shops in Northern Ireland, on the border with the Republic of Ireland, where the euro is the official currency. Also, the euro is widely accepted in Switzerland, even in government organizations such as the Swiss Railways.
prospects
Countries that joined the EU before 2004
With the accession of Greece in 2001 and until the enlargement of the EU in 2004, Denmark, Sweden and the United Kingdom remained the only members of the EU to retain their national currency. The situation for these three oldest member states was different from the new EU members; they did not have a clear timetable for adopting the euro:
- Denmark rejected several clauses of the Maastricht Treaty after it failed in a referendum. On September 28, 2000, another referendum on the euro was held in Denmark, ending with a 53.2% vote against joining the Eurozone. However, Danish politicians propose to resume discussion of the four controversial points. In addition, Denmark orients the krone against the euro (€1 = DKK 7.46038 ± 2.25%), as the krone remains under the control of the European Economic Community. Although Greenland and the Faroe Islands are not part of the European Union, they use the Danish krone (Faroese krone in Faroe) and therefore also depend on the EEC.
- Sweden: Sweden is obliged to adopt the euro under the "Agreement of 1994" when economic conditions suit it. Although other conditions are met, the krone never entered EEC II, preventing Sweden from joining. In 2003, a popular referendum rejected joining the Eurozone and Sweden has no plans to accept the euro. The EU has made it clear that it is turning a blind eye to this by respecting the position of Sweden and recognizing Sweden "de facto", but this does not apply to other countries that joined the EU from 2004 to 2007.
- The UK received a challenge to join the eurozone under the Maastricht Treaty and is not required to switch to the euro. Although the government tries to join the union by arguing that economic conditions meet all the requirements (meet the "five economic criteria"), this issue has never been put to a vote.
- The UK was forced to withdraw the pound sterling from the EEC (predecessor of EEC II) on Black Wednesday (September 16, 1992) due to confusion between its parity and economic behavior, so that the pound is not included in EEC II.
Countries that joined the EU after 2004
Since 2008, nine more states have joined the EU with their own currency; however, all of these countries are required to adopt the euro under an accession agreement. Some of these countries have already acceded to the exchange rate control mechanism of the European Economic Community, EEC II. They plan to join the Eurozone in the following order (EEC III):
- January 1, 2009 - Slovakia
- January 1, 2010 - Lithuania
- January 1, 2011 - Estonia,
- January 1, 2012 or later - Bulgaria, Hungary, Latvia, Czech Republic, Poland and Romania.
The accession of Lithuania and Estonia, scheduled for January 1, 2007, was delayed due to high inflation rates in these countries. Some of these currencies floated against the euro, while the rest were pegged unilaterally to the euro before joining EEC II. For more information, see the article "The Exchange Rate Mechanism of the European Economic Community, Exchange Rates Against the Euro and Selected Currencies Articles".
Initially, the Czech Republic planned to join the EEC II as early as 2008 or 2009, but the current government has officially pushed back the date to 2010, stating that the country will not be able to meet the economic criteria before that date. The deadline has now been extended to 2012.
Latvia also planned to enter Erozona in 2008, but inflation rates exceeding 11% led to a refusal because the country does not meet the existing requirements under the rules of the council. Now the government has officially postponed this event to January 1, 2012, although the head of the Latvian central bank believes that 2013 should be considered a more realistic date.
Poland's finance minister stated his belief that publicly announcing the date of Poland's accession would be "the wrong tactic".
Other sources cast doubt on the reality of the entry of the Czech Republic, Lithuania and Estonia even within this timeframe.
The fifth report on "Practical Preparations for Further Eurozone Enlargement" was presented on July 16, 2007, according to which, so far, only Cyprus, Malta (introduced the euro in January), Slovakia (2009) and Romania (2014) have formally set approximate date of changeover to the euro.
Estonia, Latvia, Lithuania and Slovakia have already completed the design of the front side of their future coins.
The symbol of the new euro currency was first introduced to the world community on December 12, 1996. A year earlier, the Council of Europe approved the final version of the name of the new currency Euro (EURO).The history of the appearance of the Euro symbol
If you think that the idea of the Euro came to the minds of European officials relatively recently in the 90s of the 20th century, then you are greatly mistaken. Indeed, back in the 40s of the last century, many politicians thought about creating common banknotes. They believed that a common currency for all European states would serve as a guarantor of peaceful life on the continent. At that time, it was assumed that common political, social and financial relationships could save Europe from mutual conflicts.Such high hopes that most politicians and even ordinary citizens placed on a single currency required a special graphic style of the symbol. The Europeans approached this matter with all the thoroughness and seriousness and did not begin to chop off their shoulders, so a special competition was formed in which there were several rounds.
Of course, when it comes to banknotes, one cannot do without mysterious cases and mystery. For example, the person who developed the Euro symbol was never presented to the public. Inquisitive journalists could only find out that exactly thirty authors took part in the competition and one of them turned out to be the winner. There are several versions concerning the creator of the Euro sign. Some of the researchers claim that this person's name is Arthur Eisenmenger, who was the leader in the project to create the flag of the European Union. Others claim that it was invented by a man named Robert Kalina who is the chief designer of the Central Bank of Austria. Still others tend to believe that the author is not alone, that this symbol was created by a multinational development team.
Interestingly, the European Commission still keeps its mouth shut. Therefore, the whole world knows the designer of the Euro banknote, but not the € symbol itself.
Read more: What does an exclamation mark mean?
The official description of the graphic sign, which was prepared by the EU Commission, describes the symbol as a combination of several elements:
parallel lines crossing the symbol indicate the stability of the currency;
The letter E is a representation of the European Union;
The Greek letter epsilon is a reference to the cradle of all Europeans - Ancient Greece.
In addition to the official interpretation, all sorts of discrepancies and various theories appear like mushrooms after the rain. For example, if the creator of the € sign is Arthur Eisenmenger, then we can make the assumption that the first letter of his last name was not missing here. Moreover, two lines parallel to each other that cross the letter "C" resemble the letter " There is"from the alphabet of the ancient Slavic tribes.
It should be understood that graphic image € causes some inconvenience, since this symbol is more of a logo, and not a sign, as such, created with the help of professional designers who applied their visual identification skills. This means that it should look the same in any font and in all existing encodings. There is a sample of the Euro sign, which has its own clear parameters. However, on the Internet you can find a variety of versions of the spelling of this symbol.
The euro was introduced to the world financial markets as a settlement currency in 1999, and on January 1, 2002, banknotes and coins were introduced into cash circulation. The Euro replaced the European Currency Unit (ECU), which was used in the European Monetary System from 1979 to 1998, at a ratio of 1:1.
The euro is governed and administered by the European Central Bank (ECB) based in Frankfurt and the European System of Central Banks (ESCB), which is made up of the central banks of the eurozone member countries. The ECB is an independent central bank and has the exclusive right to determine monetary policy in the eurozone. The ESCB is engaged in printing banknotes and minting coins, distributing cash among the countries of the eurozone, and also ensures the functioning of payment systems in the eurozone.
Euro banknotes and coins
There are seven denominations of euro banknotes - 5, 10, 20, 50, 100, 200 and 500 euros. Banknotes are made in the same style, but depending on the denomination they differ in colors and sizes. The front side of the banknotes depicts windows and gates, which are a symbol of openness and the European spirit of cooperation. On the reverse side of the banknotes, bridges are depicted, symbolizing open communication. By January 1, 2002, 14.5 billion banknotes had been printed.
The design of the banknotes was developed by Robert Kalina and was selected from among 44 entries on December 3, 1996 by a council of the European Monetary Institute.
Each banknote has its own size and color. Each banknote has the flag of the European Union, the abbreviation "ECB" in five languages (BCE, ECB, EZB, EKT, EKP), a map of Europe, the name of the currency "euro" in Latin and Greek ("ΕΥΡΩ") transcriptions, the signature of the current president of the ECB. Additionally, 12 stars of the EU flag are depicted. The banknotes also depict examples of European architecture of various styles and periods of history. On the front side of the banknotes, windows and gates are depicted, on the back - bridges. The images are schematic illustrations and not representations of existing structures. Banknotes of different denominations have different colors and sizes. The higher the face value, the larger the banknote in size.
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5 euro banknote. Size: 120×62 mm Main color: gray |
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10 euro banknote. Size: 127×67mm Main color: red |
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20 euro banknote. Size: 133×72mm Main color: blue |
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50 euro banknote. Size: 140×77 mm Main color: orange |
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100 euro banknote. Size: 147×82mm Main color: green |
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200 euro banknote. Size: 153×82mm Main color: yellow |
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500 euro banknote. Size: 160×82 mm Main Color: Purple |
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The coin range includes coins in denominations of 1, 2, 5, 10, 20 and 50 euro cents (1 euro = 100 euro cents), as well as 1 and 2 euros.
On the front side (obverse) of each of the coins, a drawing is minted that displays certain features of a particular state.
On the reverse side (reverse) of the coins, one of the three patterns common to all countries depicting the contours of Europe surrounded by 12 stars of the European Union is minted. The overall drawing depicts a map of the EU against a background of parallel lines stretching to the 12 stars on the EU flag. The 1, 2 and 5 cent coins depict Europe's place on the world map, while the 10, 20 and 50 cent coins show Europe as a group of individual states. On coins of 1 and 2 euros, an image of a map of Europe is given without borders between individual states.
For visually impaired people, coins are provided with a edge to help determine their value. The 1 and 2 euro coins are minted from bimetal, which, together with the text placed along the edges of the rim of the 2 euro coin, should prevent them from being counterfeited.
All coins, regardless of the country of origin, are freely circulating in the Eurozone. By January 1, 2002, about 50 billion coins of various denominations have been prepared.
| Denomination: 1 cent Diameter: 16.25mm Thickness: 1.36mm Weight: 2.30 grams Color: red |
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| Denomination: 2 cents Diameter: 18.75mm Thickness: 1.36mm Weight: 3.06 grams Color: red Metal: copper plated steel |
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| Denomination: 5 cents Diameter: 21.25mm Thickness: 1.36mm Weight: 3.92 grams Color: red Metal: copper plated steel |
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| Denomination: 10 cents Diameter: 19.75mm Thickness: 1.51mm Weight: 4.10 grams Yellow color Metal: Nordic Gold |
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| Denomination: 20 cents Diameter: 22.25mm Thickness: 1.63mm Weight: 5.74 grams Yellow color Metal: Nordic Gold |
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| Denomination: 50 cents Diameter: 24.25mm Thickness: 1.88mm Weight: 7.80 grams Yellow color Metal: Nordic Gold |
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| Denomination: 1 euro Diameter: 23.25mm Thickness: 2.125mm Weight: 7.50 grams Color: white/yellow |
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| Denomination: 2 euro Diameter: 25.75mm Thickness: 1.95mm Weight: 8.50 grams Color: white/yellow Metal: copper-nickel, nickel alloys |
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The reverse side of the coins characterizes a separate country of the European Union and differs from the rest.
Checking the serial number. The euro banknote number consists of a letter and eleven digits. Numbers are generated according to a special algorithm, resulting in interesting mathematical patterns.
Country of issue
When summing all the digits of the number, a two-digit number is obtained. If you repeat the operation for the result found (several times if necessary), then in the end you can reach the digital root from 1 to 9. The letter and this single-digit number will indicate the country in which the bill was printed.
For each country eligible to issue the euro, a certain letter is assigned, as well as the checksum of the number: Austria - N - 3, Belgium - Z - 9, Germany - X - 2, Greece - Y - 1, Ireland - T - 6, Spain - V - 4, Italy - S - 7, Cyprus - G - 1, Malta - F - 2, Netherlands - P - 1, Portugal - M - 4, Slovakia - E - 3, Slovenia - H - 9, Finland - L - 5, France - U - 5, Estonia - D - 4.
Example. 100 Euro banknote with the number S11752786501. The double sum is: 1+1+7+5+2+7+8+6+5+0+1=43; 4+3=7. Both the letter S and 7 refer to Italy.
Checksum 8
The letter of the serial number is replaced by a number corresponding to the serial number of the letter in the English alphabet. This number and all the digits of the number are added until a single digit is obtained. For a genuine banknote, the final amount is always 8.
Letters of the English alphabet in order: A - 1, B - 2, C - 3, D - 4, E - 5, F - 6, G - 7, H - 8, I - 9, J - 10, K - 11, L - 12, M - 13, N - 14, O - 15, P - 16, Q - 17, R - 18, S - 19, T - 20, U - 21, V - 22, W - 23, X - 24, Y - 25, Z - 26.
Example. 100 euro banknote with the number S11752786501. The letter S is the 19th in the alphabet. Addition chain: 19+1+1+7+5+2+7+8+6+5+0+1=62; 6+2=8.
External signs of the authenticity of the euro
Euro banknotes of each denomination have their own size, dominant color and design style. A set of mandatory attributes is present on banknotes of any denomination.
Paper
For the manufacture of the euro, a special paper made of pure cotton is used. It is smooth to the touch on the front side and a little rough on the back, hard, crunches when bent and, unlike ordinary paper, does not glow in ultraviolet rays.
Relief printing
Special printing methods give the individual elements of banknotes a distinct relief to the touch.
On the front side, there are denomination figures, a sign, the ECB (European Central Bank) line in five languages, the year of issue, the Latin and Greek spelling of EURO, the main picture.
Water marks
When examining the light coupon fields of the banknote against the light, the image becomes visible, which is formed due to the special structure of the paper (areas of different density).
Euro watermarks are a partial repetition of the main image of the obverse (window or gate), the denomination number, as well as a machine-readable barcode in the form of vertical dark and light stripes.
Hologram (kinegram)
All euro banknotes have a hologram on the front side - a pressed pattern on a metallized foil with a three-dimensional image effect.
On banknotes of 5, 10 and 20 euros - this is a silvery transverse strip on the right, on which, at different angles to the light source, either the denomination numbers in the ring of stars or the € symbol are distinguishable.
The hologram on banknotes of 50, 100, 200 and 500 euros is an overlay of a certain geometric shape. By changing the angle of view, one can alternately see either the denomination figures or the architectural motif against the background of diverging rainbow circles formed by microtext (EURO in Latin and Greek and denomination figures).
Security thread
When the banknote is viewed through the light, a dark vertical strip appears in the middle part - this is a protective tape completely embedded in the paper web with a light EURO microtext applied to it and denomination figures in direct and inverted display.
Color change
On the reverse of the banknotes of 50, 100, 200 and 500 euros, the denomination figures in the lower right corner are applied with optically variable ink, which changes its color from purple to olive brown when the angle of view is changed.
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Euro machine-readable security features The following euro signs of authenticity require special equipment to detect.
Microprinting and micropatterning
In some areas of banknotes, the text is printed in such small type that it is perceived by the naked eye as a thin line or pattern, and is understandable only under a magnifying glass. So, the letters of the word EURO in Greek on the front side consist of repeating numbers of the denomination in the microscale.
The micropattern is also clearly visible under multiple magnification.
UV luminescence
The substrate remains dark in ultraviolet rays, individual patterns of banknotes glow due to the luminescent substances in the composition of the inks. Security paper fibers show up as blue, red and green threads under UV light. The flag of the European Union on the obverse of the banknotes turns green with orange stars, the signature of the President of the European Central Bank turns green, red-orange stars and circles (dots) of the background are also visible. The map, the bridge, the EURO inscriptions in two languages and the denomination numbers on the reverse side look green-yellow. In addition to common features, there are other features depending on the denomination of the banknote.
Magnetic tags
In some areas of banknotes, inks with magnetic properties are used, which form marks that are detected by magnetic control devices. This is a security thread, the right side of the main design on the obverse, the top serial number on the back.
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Other automatically readable hidden codes are not disclosed to the general public for the security of the currency.
Country code
Where exactly the banknotes themselves are printed depends on each country. Almost all member states of the euro area print "their" banknotes both at their own printing houses and at printing houses of other countries.
To determine for which country a banknote was printed can be determined by its number - the first letter of the number indicates the issuing country. Also, a checksum is “attached” to each country, which is one of the degree of protection of banknotes from counterfeiting.
Country code
Euro banknotes have the right to print only the national central banks of the countries belonging to the eurozone in agreement with the European Central Bank (ECB). The decision on additional emission is taken at a meeting of the ECB Governing Council, which includes 6 members of the ECB Directorate appointed by the European Parliament and 16 national bank governors of the eurozone countries.
Where exactly the banknotes themselves are printed depends on each country. Almost all member states of the euro area print "their" banknotes both at their own printing houses and at printing houses of other countries.
To determine for which country a banknote was printed can be determined by its number - the first letter of the number indicates the issuing country. Also, a checksum is “attached” to each country, which is one of the degree of protection of banknotes from counterfeiting.
| The code | The country | Check sum |
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Slovakia |
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Slovenia |
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not used |
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Great Britain |
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Finland |
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Portugal |
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not used |
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Netherlands |
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not used |
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Luxembourg |
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Ireland |
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Germany |
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- * Denmark, Sweden and the UK have not yet joined the euro area, but they already have national identifiers assigned
- *** Luxembourg does not have its own certified printing houses and has not yet issued "own" banknotes
cliché code
Each of the 7 denominations of euro banknotes has a six-character code that contains information about the printing house on which the banknote is printed. The cliché code looks like "G013B6", where the first letter identifies the printing house, the next three digits identify the cliché number. For example, "013" stands for the 13th printing block of the printing house. The fifth and sixth elements of the code designate, respectively, the row and column of the banknote on the cliché. This means that with this code, the banknote was located on the cliché in the second row, sixth column. Attention: the cliché code on the banknote must not match the country code!
In the European Union, there are both state-owned printing houses and private ones that have a license to print money. There are several printing houses operating in Germany from the former East and West German territories. In France, the printing house of the Bank of France in Chamalier and a private printing house in Chantepie have the right to issue euro banknotes.
| The code | Typography | Location | The country | Issuing country |
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| (A)* | (Bank of England Printing Works) | (Lawton) | (Great Britain) | --- |
| (B)** | not used | --- | --- | --- |
| (C)* | (Tumba Brook) | (Table) | (Sweden) | --- |
| D*** | Setec Oy | Vantaa | Finland | L (Finland) |
| E | F. C. Oberthur | Chantepie | France | H (Slovenia) L (Finland) P (Netherlands) U (France) |
| F | Osterreichische Banknoten und Sicherheitsdruck | Vein | Austria | N (Austria) P (Netherlands) S (Italy) T (Ireland) Y (Greece) |
| G | Koninklijke Joh. Enschede | haarlem | Netherlands | E (Slovakia) F (Malta) G (Cyprus) L (Finland) N (Austria) P (Netherlands) V (Spain) Y (Greece) |
| H | De La Rue | Gateshead | Great Britain | L (Finland) M (Portugal) P (Netherlands) T (Ireland) |
| (I)** | not used | --- | --- | --- |
| J | Istituto Poligrafico e Zecca dello Stato | Rome | Italy | S (Italy) |
| K | Banc Ceannais on hEireann/ Central Bank of Ireland | Dublin | Ireland | T (Ireland) |
| L | Banque de France | Chamalier | France | U (France) |
| M | Fabrica Nacional de Moneda y Timbre | Madrid | Spain | V (Spain) |
| N | Bank of Greece | Athens | Greece | Y (Greece) |
| (O)** | not used | --- | --- | --- |
| P | Giesecke & Devrient | Munich and Leipzig |
Germany | L (Finland) M (Portugal) P (Netherlands) U (France) V (Spain) X (Germany) Y (Greece) |
| (Q)** | not used | --- | --- | --- |
| R | Bundesdruckerei | Berlin | Germany | P (Netherlands) X (Germany) Y (Greece) |
| (S)* | (Danmarks Nationalbank) | (Copenhagen) | (Denmark) | --- |
| T | National Bank of Belgium | Brussels | Belgium | U (France) V (Spain) Z (Belgium) |
| U | Valora - Banco de Portugal | carregado | Portugal | M (Portugal) |
- * Denmark, Sweden and the UK have not yet joined the euro area, but their national printers already have identifiers assigned to them
- ** Several letters already reserved for the future
- *** Currently not in use. After the complete sale of the printing house to Gemalto Oy in 2003, Finland stopped printing banknotes and orders them from Europe.
European Central Bank (ECB) and its presidents
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The European Central Bank is the central bank of the European Union and the euro area. It was formed on June 1, 1998. The bank's headquarters is located in the German city of Frankfurt am Main. Its staff includes representatives of all EU member states.
The main functions of the bank:
development and implementation of the monetary policy of the euro area;
maintenance and management of the official exchange reserves of the euro area countries;
issue of euro banknotes;
setting basic interest rates.
maintaining price stability in the euro area, that is, ensuring the inflation rate does not exceed 2%.
The European Central Bank is the successor to the European Monetary Institute (EMI), which played a leading role in preparing for the introduction of the euro in 1999.
All euro banknotes bear the signature of the current president of the ECB. Directors are appointed for a period of eight years. In 1998-2010 the bank was headed by:
Wim Duisenberg (07/09/1935 - 07/31/2005), Minister of Finance of the Netherlands and the first president of the ECB. Left post October 31, 2003
Jean-Claude Trichet (b. 12/20/1942), Governor of the Bank of France since 1993, since 10/31/2003 - President of the ECB.
Euro icon.
On December 12, 1996, the symbol of the new currency was officially presented to the world community. A year earlier, the European Council took the final decision on its name - EURO.
The history of the euro sign
The history of the euro begins in the mid-40s of the last century. It can be said that European countries saw in the new universal currency a means of maintaining peace on the continent. It was believed that strong financial, social and political relations would negate the threat of war.
Such high expectations placed on the euro required a unique graphic expression. The European Commission approached this issue with all seriousness and ordered a competition consisting of several rounds.
This story is not without mysteries. It is still a mystery who became the winner of the competition and the author of the world famous sign. It is only known for certain that the commission chose the winner from a variety of options - most likely, their number was 30. There are several versions regarding the author. Some believe that this is the chief designer of the European Community, Arthur Eisenmenger, who led the development of the EU flag symbol. Others believe that the author is Robert Kalina, chief designer of the Central Bank of Austria. Someone attributes authorship not to a specific person, but to a whole group of developers.
What is noteworthy: the European Commission refrains from commenting. So the whole world knows the author, for example, of the design of the banknote itself, but not the author of the graphic sign €.
The official description of the sign, prepared by the European Commission, describes the image as a combination of the following components:
- Greek epsilon as a reference to Greece - the cradle of European civilization;
- the letter E is a symbol of Europe;
- parallel lines crossing the sign and representing the stability of the currency.
In addition to the official interpretation, theories and discrepancies are multiplying. For example, if we consider Arthur Eisenmenger as the author, then we can assume that the first letter of his surname is involved here. Two lines parallel to each other and crossing the arc of the sign make it look like the letter "Yes" from the Old Slavonic alphabet.
Some inconveniences are associated with the fact that euro symbol- this is rather not a sign, but a logo created by the efforts of visual identification standards consultants. That is, in all encodings and with any font, it should look the same. A sample is a very specific sign that has fixed parameters. However, there are various spellings.