The European Union THE EUROPEAN UNION Lesson 6 How do individuals, businesses and economies benefit from using the Euro?

The European Union The Euro In 1999, the euro area was established as a currency in eleven of the then fifteen EU Member States. Of the 27 EU Member States today, seventeen have adopted the euro. Estonia is the most recent member, having joined in Jan One of the striking benefits of a single European currency are low interest rates due to a high degree of price stability. The euro is as stable and credible as the best- performing currencies previously used in the euro area countries. €€€€€€€€

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

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

The European Union The Euro a single currency for Europeans EU countries using the euro in 2011 EU countries part of ERM II (in between) EU countries not using the euro Can be used everywhere in the euro area  Coins: one side with national symbols, one side common  Notes: no national side New Euro countries since 2001: Cyprus (2006) Malta (2006) Slovakia (2008) Slovenia (2009) Estonia (2011)

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

The European Union United in Diversity - The €uro

The European Union United in Diversity - The €uro

The European Union 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 euro area comprises the 17 European Union countries that have introduced the euro since The ECB operates independently from Member State governments. The euro was introduced in 1999