Euro currency

Liisa KuuseSanne Rüütelmaa

Pärnu 2010

What is euro?• Europe’s single currency • shared by 16 EU

countries and around 329 million citizens

• world’s most important currencies

• the euro was launched on 1 January 1999

• Before a Member State can adopt the euro, it must fulfil certain economic and legal criteria.

Which countries have adopted the euro and when?

• 1999 - Belgium, Germany, Ireland, Spain, France, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland

• 2001 - Greece• 2007 - Slovenia• 2008 - Cyprus, Malta• 2009 - Slovakia

• Coins:1c · 2c · 5c · 10c · 20c · 50c · €1 · €2 · €2

• Banknotes:€5 · €10 · €20 · €50 · €100 · €200 · €500

Pros • Makes travelling easier• A stable currency with low inflation • Low interest rates• A single currency increases price transparency• Easier international trade • Better protection from external economic

shocks

Cons • Differences across the EU in economic

performance• Political barriers • Loss of national sovereignty • Cost of Introduction• Unemployment will increase• Will the euro be accepted as easily as is

thought?

Why did Europe decide to adopt the euro?

• to ensure stable economic growth• to control price increases

Why should Estonia change over to the euro ?

• Changeover to the euro, a world currency, will have a positive effect on the confidence of the economy

• The euro will decrease the risk that the value of our money would decline and savings would be reduced

• Transition to the euro will make travelling more convenient and cut the costs of currency exchange for both private individuals and businesses

The end

Thank you!