Today marks 20 years since the introduction of the Euro, the common currency of Europe. It is now used by 340 million people in 19 countries, from Ireland to Germany and Scolovakia.
Saturday marks 20 years since the introduction of the euro, the common currency of Europe. Europeans initially began to use the euro, the single European currency, with skepticism. Due to this there were many doubts ranging from rising prices to debt crisis in many European countries. Euro banknotes and coins were introduced on 1 January 2002 in 12 countries. It was greeted with a mixed sense of enthusiasm and skepticism by citizens who had so far traded in their country’s currencies, the Deutsche Mark, the franc and the lira.
Europe’s common currency, from Ireland to Germany and from Slovakia to Slovakia, is now used by 340 million people in 19 countries. While Bulgaria, Croatia and Romania are in line to join the Eurozone in the next few years. However, some people are divided about the benefits of leaving their country’s currency. The idea of making the euro a common currency for the whole of Europe first emerged in the 1970s to strengthen European integration, further ease trade between member states, and make the continent of Europe compete with the mighty dollar.
Saved Europe from economic devastation in pandemic
Most leaders applaud the euro for helping Europe avoid economic devastation during the coronavirus pandemic. The head of the European Central Bank, Christine Lagarde, believes that Europe and the euro are clearly linked together. For young Europeans who have only known the single currency Euro in their lives, it would be almost impossible to imagine Europe without it.
In the initial days, people were worried about the possibility of rising inflation.
In the early days of the euro, people in some economically weaker countries were worried that it would increase the prices of essential goods. However, the data showed that the euro has more stable inflation, barring a few items such as coffee. The prices of the more expensive goods have not risen and even declined in some cases. However, the dollar is still the most widely used currency around the world. The euro currently accounts for 20 per cent of the global foreign currency exchange reserves as against 60 per cent of the dollar.