eurozone 2013 (2)

eu background

eu 1952-2007

the next 8

eurozone background

history of eu to eurozone

where do the coins come from?

euro run game

Basic Euro History

1991-1993: Maastricht Treaty – pathway for Euro and Exchange Rate Mechanism (ERM)

1999: Euro starts life as a currency

1999-2001: Original members of system lock their currencies for two years

2002: Notes and coins come into circulation

2007: Slovenia becomes first of the new member states to enter the currency union

2008-09: Three new nations – Slovakia, Cyprus and Malta – the Euro Area extends to 16 nations

2011; estonia joins 17 nations in Eurozone

Euro essentials

• Monetary union is a deepening of economic integration between participating countries
• A single currency requires a common interest rate for the Euro Zone – i.e. a common monetary policy
• Countries have locked their currencies together forever and adopted one currency as a medium of exchange
• Euro as a currency floats against US dollar and sterling
• Member nations are also required (in principle) to keep control of government borrowing i.e. They are not allowed to run large budget deficits > 3% of their GDP (in normal times)

role of the european central bank



euro zone statistics

optimal currency area? (bbc data sets 2012)