January 4:

1999 : The euro debuts

On this day in 1999, for the first time since Charlemagne's reign in
the ninth century, Europe is united with a common currency when the
"euro" debuts as a financial unit in corporate and investment markets.
Eleven European Union (EU) nations (Austria, Belgium, Finland, France,
Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and
Spain), representing some 290 million people, launched the currency in
the hopes of increasing European integration and economic growth.
Closing at a robust 1.17 U.S. dollars on its first day, the euro
promised to give the dollar a run for its money in the new global
economy. Euro cash, decorated with architectural images, symbols of
European unity and member-state motifs, went into circulation on
January 1, 2002, replacing the Austrian schilling, Belgian franc,
Finnish markka, French franc, German mark, Italian lira, Irish punt,
Luxembourg franc, Netherlands guilder, Portugal escudo and Spanish
peseta. A number of territories and non-EU nations including Monaco
and Vatican City also adopted the euro.

Conversion to the euro wasn't without controversy. Despite the
practical benefits of a common currency that would make it easier to
do business and travel throughout Europe, there were concerns that the
changeover process would be costly and chaotic, encourage
counterfeiting, lead to inflation and cause individual nations to
loose control over their economic policies. Great Britain, Sweden and
Demark opted not to use the euro. Greece, after initially being
excluded for failing to meet all the required conditions, adopted the
euro in January 2001, becoming the 12th member of the so-called
eurozone.

The euro was established by the 1992 Maastricht Treaty on European
Union, which spelled out specific economic requirements, including
high degree of price stability and low inflation, which countries must
meet before they can begin using the new money. The euro consists of 8
coins and 7 paper bills. The Frankfurt-based European Central Bank
(ECB) manages the euro and sets interest rates and other monetary
policies. In 2004, 10 more countries joined the EU—-Cyprus, Czech
Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia
and Slovenia. Several of these countries plan to start using the euro
in 2007, with the rest to follow in coming years.

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General Interest
1999 : The euro debuts
history.com/tdih.do?action=tdihVideoCategory&id=4644

1896 : Utah enters the Union
history.com/tdih.do?action=tdihArticleCategory&id=4643

1974 : President Nixon refuses to hand over tapes
history.com/tdih.do?action=tdihArticleCategory&id=4645

1987 : Segovia begins final U.S. tour
history.com/tdih.do?action=tdihArticleCategory&id=6766

1995 : 104th Congress under Republican control
history.com/tdih.do?action=tdihArticleCategory&id=4646

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