THE EUROPEAN UNION How do individuals, businesses and economies benefit from using the Euro?

The Euro € In 1999, the euro area was established as a currency in eleven of the then fifteen EU Member States. Of the 28 EU Member States today, seventeen have adopted the euro. Estonia most recently joined in 2011, and Latvia is expected to adopt the euro in 2014. In response to the economic and financial crisis, the EU created a new set of rules on enhanced EU economic governance which entered into force in December 2011.

Before the Euro: a multitude of currencies Cumbersome inter-state trading Comparing prices more difficult Currency exchange can be unpredictable in contracts/ loans 3

The Euro: a single currency for Europeans The 12 countries that introduced the Euro in 2001: Austria Belgium Finland France Germany Greece Italy Ireland Luxembourg Netherlands Portugal Spain 4

The Euro: a single currency for Europeans Can be used everywhere in the 17-country euro area Coins: one side with national symbols, one side common Notes: no national side New Euro countries since 2001: EU countries using the euro in 2013 EU countries not using the euro Cyprus (2006) Malta (2006) Slovakia (2008) Slovenia (2009) Estonia (2011)

Some of the Euro’s benefits International trade is facilitated Currency exchange costs are eliminated European Central Bank keeps price inflation low so interest rates also remain low Travelling is made easier Comparing prices is made simpler 6

United in Diversity - The €uro 7

United in Diversity - The €uro

The euro was introduced in 1999 European Central Bank The European Central Bank (ECB) is the central bank for Europe's single currency, the euro. The ECB’s main task is to maintain the euro's purchasing power and thus price stability in the euro area. The ECB operates independently from Member State governments. The euro area comprises the 17 European Union countries that have introduced the euro since 1999. The euro was introduced in 1999