Euro: Currency of the European Union

The Euro (symbol: €; currency code: EUR) is the official currency of 20 out of the 27 European Union member states. This collective is officially referred to as the euro area or, more commonly, the eurozone. The euro is divided into 100 euro cents and is not only used by EU institutions but also by four European microstates that are not EU members, the British Overseas Territory of Akrotiri and Dhekelia, and unilaterally by Montenegro and Kosovo.

Introduction and Adoption

The euro was introduced to world financial markets as an accounting currency on January 1, 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1. Euro banknotes and coins entered into circulation on January 1, 2002. Today, the euro is the second-largest reserve currency and the second-most traded currency globally after the United States dollar.

Design and Denominations

Euro Banknotes

Euro banknotes have been in circulation since the first series was issued. The banknotes are common across all eurozone countries with designs representing architectural styles from different periods in Europe's history.

Euro Coins

There are eight euro coin denominations, ranging from one cent to two euro. Each eurozone country has its own national design on one side of the coins, which allows for a diversity of designs representing various national emblems or iconic figures.

Euro Sign

The euro sign (€) was designed to represent stability. It was introduced by the European Commission and is derived from the Greek letter epsilon (Є) as a reference to the cradle of European civilization and the first letter of "Europe."

Eurozone

The eurozone consists of the EU countries that have adopted the euro as their official currency. As of 2023, this includes 20 EU member states. Countries that are part of the eurozone must meet specific economic criteria known as the Maastricht criteria, which include inflation control, public debt, and deficit limits.

Global Impact and Currency Pegging

The euro serves as a major reserve currency and is used by over 350 million people in Europe. It is also pegged to currencies outside the eurozone, impacting over 200 million people worldwide. This wide acceptance highlights the euro's importance in international trade and finance.

Euro in Sports and Culture

In addition to being a currency, the term "Euro" is synonymous with major events such as the UEFA European Championship, often referred to as the "Euro." This prestigious football tournament gathers teams from across Europe, further embedding the euro into continental culture.