euro

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Euro

Originally, the term for a deposit made outside one's home country but denominated in the home country currency. This terminology is confusing now since the new European Currency unit, also called the Euro, was introduced on January 1, 1999.

Euro

The currency of participating member nations of the European Union. The euro was introduced in 1999 and became the official currency of participating nations in 2002. It was intended to remove the exchange rate risk of businesses participating in the EU's common market and free trade association. It has become one of the world's most important currencies. Proponents of the euro state that it is more valuable than the former currencies, while opponents say that it has made goods and services in their home countries more expensive. The euro's ISO 4217 code is EUR. See also: European Central Bank, EURIBOR, Eurozone.

euro

A common currency used by many European countries. The euro was established in 1999 when 11 European countries adopted a common currency in order to facilitate global trade and encourage the integration of markets across national borders. Euro banknotes and coins began circulating in January 2002.

Euro.

The euro is the common currency of the European Monetary Union (EMU). The national currencies of the participating countries were replaced with euro coins and bills on January 1, 2002.

euro (₠)

the common (‘single’) currency of the EUROPEAN UNION (EU), introduced in January 1999 as an integral element in the move towards ECONOMIC AND MONETARY UNION (EMU). Initially, the euro served as a book-keeping ‘unit of account’; in 2002, however, euro banknotes and coins were put into circulation, to replace the individual domestic currencies of EMU members, so the euro is now used as a ‘medium of exchange’ to finance day-to-day transactions in goods, services and financial assets (see MONEY).

Eleven of the 15 countries of EU were founding members of the EMU zone in January 1999: Germany, France, Italy, Spain, Netherlands, Belgium, Austria, Finland, Portugal, Ireland and Luxembourg, with the UK, Sweden, Greece and Denmark adopting a ‘wait and see’ stance. Greece joined the euro-zone in 2001. The UK's position is still to be resolved on the basis of ? ‘tests of fitness’ (see ECONOMIC AND MONETARY UNION entry for details).

The value of the euro against the currencies of nonmembers of the EMU zone ‘floats’ on a day-to-day basis according to supply and demand conditions. For example, the value of the euro against the UK pound was around 71 pence when it was launched in January 1999. After falling to a low of 57 pence in May 2000, the Euro has since recovered and is currently (at March 2005) around 69 pence.

The euro is administered by the EUROPEAN CENTRAL BANK, which is responsible for setting EMU-wide interest rates and determining monetary policy.

Fig. 61 Euro. Euro/£ exchange rate. See entry. Source: The Daily Telegraph .click for a larger image
Fig. 61 Euro. Euro/£ exchange rate. See entry. Source: The Daily Telegraph .

euro (₠)

the common (‘single’) currency of the EUROPEAN UNION (EU), introduced in January 1999 as an integral element in the move towards ECONOMIC AND MONETARY UNION (EMU). Initially, the euro served primarily as a book-keeping ‘unit of account'; in 2002, however, euro bank notes and coins were put into circulation, replacing the individual domestic currencies of EMU members, and the euro was then used as a ‘medium of exchange’ to finance day-to-day transactions in goods, services and financial assets (see MONEY).

Eleven of the 15 countries of the EU were founding members of the EMU zone in January 1999. The value of the euro against each of the individual currencies of the 11 members of EMU was irrevocably fixed at that time, thus serving to fix the cross-exchange rates of one member's currency against all other members’ currencies. These conversion rates ceased in 2002, when domestic currencies themselves were replaced by the euro. The value of the euro against the currencies of nonmembers of the EMU zone ‘floats’ on a day-to-day basis according to supply and demand conditions. For example, the value of the euro against the UK pound was around 71p when it was launched in January 1999. As at April 2005, one euro was worth (UK) 0.69 pence or, expressed in terms of the UK pound, £1 = 1.45₠ (see Fig. 61 ). The euro is administered by the EUROPEAN CENTRAL BANK, which is responsible for setting EMU-wide interest rates and determining monetary policy. Greece joined the eurozone in 2001. See ADJUSTMENT MECHANISM.

References in periodicals archive ?
Although the UK refrained from any commitment to adopting a single currency under this time frame, the EU was set on a course of European Monetary Union (EMU) and on January 1, 1999, eleven countries officially pegged their national currencies against a single European currency (the euro), with a 12th member (Greece) joining the group on January 1, 2001.
On January 1, 2002, 12 countries participating in the first wave of the introduction of the single European currency will replace their national currencies with the euro.
The single European currency, which will boast its own notes and coins next year, has benefited from worries about the economic outlook for America and Japan.
TUC delegates signed up for the single European currency yesterday, backing the Brighton Declaration which supports "actively pursuing entry early in the new decade".
With the countdown to the launch of the single European currency reaching its climax, an IPSOS-AFP opinion poll published on November 10 reveals that the Euro now enjoys the support of a majority of the population in the major Euro zone countries.
In this visceral conservatism, if French leaders are to be believed, lies the reason that France, more than any other European country, has found itself disoriented before the prospect of curtailing the welfare state, creating a flexible labor market, adopting the new technologies of cyberspace and embracing a single European currency, all in order to compete in a global economy.
This support of the single European currency should be available from the very start of the EMU.
The single European currency also weakened against the dollar, hitting its lowest level since early July 2010, while the dollar briefly changed hands at 78.
STAYING out of the single European currency could cost jobs, says Leamington and Warwick MP James Plaskitt.
Support among the public for joining the single European currency has fallen to its lowest for a year with just one-third of people backing entry.
THE Treasury has denied reports that Chancellor Gordon Brown had decided the pound would have to lose almost a third of its value in order for Britain to join the single European currency.
Susan Cowin, head of ACCA Wales, said, "The establishment of a single European currency represents one of the boldest economic, monetary and political projects in modern history and few issues have provoked such impassioned debate among business leaders in Wales.

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