European Commission One currency for one Europe Th e euro - a force for world Th e European Institutions - economic stability working together Stable international currencies contribute greatly to the stability of the global economy. Th is is important not only for trade and investment but also, longer-term, for rising standards of Th e road to the euro living and economic growth in both the industrialised nations and developing countries. As the Th e European Parliament, whose members largest trading bloc in the world, and the greatest source of investment in other countries, the are directly elected, is consulted on legislative proposals, and EU has a clear interest in world economic stability. Th is is why sound economic management in in many areas it also shares with the Council of the European the euro area is so important – it gives world markets confi dence and brings the stability that Union the power to adopt legislation (in the ‘co-decision growth demands. 2007 Th ere are now more than 60 million broadband internet procedure’). ECON is the standing committee on economic 2007 Bulgaria and Romania join the Community, bringing connections in the EU. You can play a and monetary aff airs that considers EMU issues. 2007 Slovenia is the fi rst of the its membership to 27 and game in real time with a friend on the Th e European Central Bank newer Member States to adopt the other side of the world, phone home adding the lev and the leu euro. Th e euro area now numbers Th e ECB in Frankfurt is the core of the European System of Central Banks for free, and even get high defi nition Th e European Commission to its currencies. Over 490 13 countries and contains over 315 (ESCB), comprising the national central banks of all EU Member States. Th e television – all online. Internet proposes policies and legislation and monitors million people now live in the million people, almost two thirds of ECB is independent of national governments and conducts the monetary hotspots allow wireless access in towns, its implementation. Proposals relating to EMU are European Union. Like the Member the EU population. Euro banknotes policy of the euro area with a mission to maintain price stability. Stable on planes and in cafés. prepared by DG ECFIN – the Directorate-General States which joined in 2004, they and coins celebrate their fi fth year in prices with low infl ation allow companies and investors to plan with for Economic and Financial Aff airs. will introduce the euro once they citizens’ pockets. Euro area Member greater certainty, encouraging growth and employment. While the ECB have fulfi lled the entry criteria. States issue a special 2-euro coin Th e Council of the European Union, which is leads monetary policy, which deals with the supply of money, fi scal policy to commemorate the fi fty-year made up of representatives of Member State governments, decides – covering taxation and expenditure – remains the responsibility of individual anniversary of the signature of the on and adopts Commission proposals. Th e ECOFIN Council, governments within the agreed bounds of the SGP. Treaty of Rome, which gave birth to consisting of national ministers of fi nance and economic aff airs, deals the European Community.

with EMU matters. 2006 Galileo is ‘on air’. Th e European H Th e European Union 2004 satellite navigation system receives its fi rst now numbers 25, welcoming the

test signals from space. When it becomes

i Czech Republic (koruna), Estonia s operational in 2008, Galileo will provide

(kroon), Cyprus (pound), Latvia t pinpoint navigation for cars, ships and

(lat), Lithuania (litas), Hungary o planes anywhere around the globe. It will (forint), Malta (lira), Poland (zloty),

use a constellation of 30 satellites at more r Slovenia (tolar) and Slovakia

Mobility - a key element © ESA than 20 000 km above the earth. E Earlier currencies

y in EU integration (koruna). c

in Europe Mobility, whether for business, leisure or to live in another part of Europe, is 2002 A new year and a new currency. a

o Th e euro replaces national currencies that important for many socio-economic reasons: people can go where the best Th e largest monetary changeover n n have a long history. Th e oldest is the Greek employment opportunities are; students can study abroad; and tourism expands in history takes place as euro coins

and contributes to regional economies. Th e single market has removed many and banknotes replace the national o drachma, in use over 2 500 years ago. d Th e Roman emperors used coins to communicate barriers to mobility. Professional qualifi cations are recognised across the EU; travel currencies of the euro area. Th e new 2000s Millions of MP3 players are sold – tiny

m euro is the crowning achievement of their victories and their policies, and the Roman markets are liberalised – encouraging lower-cost, more frequent travel; and in devices that carry a lifetime’s worth of high- p decades of work towards EMU. denarius and aureus were accepted from the British the EU Erasmus programme, over 1 million students have attended university in 2000 Th e Heads of State and Government quality music and video in your pocket. Digital

i Isles to Turkey – the fi rst pan-European currency. another EU country. of the EU launch the Lisbon Agenda – a photography replaces photographic fi lm and o c Coins were often named after units of measure, such series of ambitious reforms to make the photos are shared by millions online. Unheard of l as the Italian lira and the Finnish markka; European Union the most dynamic and before 2004, ‘blogs’ – online diaries – enter the a i t this is because they originally contained a fi xed competitive knowledge-based economy in mainstream and by 2006 there are more than 50 n i amount of gold and silver. Th e gold franc Designing the euro the world by 2010. million of them online. c (from the inscription francorum rex on early d Th e designs on euro banknotes follow the theme ‘ages and styles of Europe’, s coins, meaning ‘King of the Franks’.) was fi rst depicting architectural images from seven periods in European cultural history struck in 1360 to celebrate the release of m – for example, Romanesque styles on the €10 note. Th e images emphasise Th e euro is launched in the King John II, captured by the English. windows and gateways, refl ecting the European spirit of openness and co- 1999 11 Member States forming the euro Th e thaler coin was fi rst operation. Euro banknotes are the same throughout the euro area. Euro coins o Th e Schengen area, fi rst agreed area. But banknotes and coins are not minted in 1519 in the Czech have a common design on one side, and a country-specifi c design on the 1999 in the Luxembourg town of Schengen available yet – the euro is still a ‘virtual’ n Republic. Th e thaler, or daler, reverse. Each euro-area member chose its own series of designs, refl ecting its in 1985, is extended to 13 countries in currency. Greece joins the euro area in was used for many years in Europe specifi c history or culture. e but only survives today as the Treaty of Amsterdam. Much of the 2001. t the ‘dollar’. EU now has a single external border and 1997 Low-cost airlines bring a people, including non-EU nationals, can frequent air travel within the reach of Th e independent European Central r Monetary unions of the past move freely around the Schengen area. 1998 many more people – boosting tourism Bank is founded in Frankfurt. y Monetary unions were tried in the past in Europe. Th e Latin Monetary and travel throughout Europe. By 2000, Union united France, Belgium, Switzerland, Greece and Bulgaria in 1867 with they are carrying tens of millions of u gold and silver coins, and a Scandinavian Monetary Union was established 1997Th e Stability and Growth Pact is passengers per year in the EU. S n 1957 Th e six founding members of the Preparations for €-day in 1875. Th ese failed because the price of gold varied with respect to silver, agreed at the Amsterdam European European Union each have their own money: o destabilising the currencies. A successful monetary union was that of the Council. i Euro banknotes and coins were launched all over the o Belgium (franc), Germany (mark), France (franc), German Federation. A customs union was completed by 1834 and currency c euro area on 1 January 2002. In preparation, over 14 EMU - ensuring stability 1995 Austria, Finland and Sweden join Italy (lira), Luxembourg (franc), and the Netherlands exchange rates were fi xed. Th en came a single currency, the Reichsmark, the n billion euro banknotes, worth €633 billion, were printed the newly formed European Union, bringing 1995 Th e European Council i (guilder). Th e word ‘money’ comes from ancient and convergence forerunner of the Deutschmark. e Rome – from the Temple of Juno Moneta where and 52 billion euro coins struck – using 250 000 tonnes membership to 15 and adding the schilling, meeting in Madrid announces t coins were minted. of metal. Around €140 billion was distributed to high Th e economies of the candidates for EMU needed to markka and krona. Th e Austrian Mint was the name of the future European y street banks and retailers in the days before the launch. converge – to become more like each other – in order established in 1194 to make coins from the ransom single currency – the euro – to be 1990s Mobile phone subscriptions to ensure economic stability. Th is was achieved by At fi rst, the euro was used side-by-side with national paid in silver to release the English king Richard launched on 1 January 1999. in the EU rise from 4.2 million in 1991 a currencies, but after two months, only the euro was legal meeting the Maastricht convergence criteria, which the Lionheart, from Austrian captivity. to over 230 million by 2000 – this huge tender. included a low infl ation rate, a stable exchange rate, 1994 Th e European Monetary Institute is growth is a result of Europe-wide GSM n a government defi cit of less than 3% of GDP, national created to coordinate national central banks in technology developed by EU-funded d debt of less than 60% of GDP, and low long-term making the institutional changes needed research. interest rates. Once EMU became a reality, the Stability for EMU. c 1961 Th e Berlin Wall is erected – a and Growth Pact (SGP) came into operation. Th e 1989 Soviet President Mikhail Gorbachev’s concrete expression of the so-called ‘Iron reforms remove the barriers that divide Europe. u SGP has the same limits on defi cit and debt as the Th e single market is in operation. Cars Curtain’. Th e wall cuts the historical capital Th e Iron Curtain is drawn back as Hungary 1992 Th e founding Maastricht criteria, and encourages the stability needed are no longer stopped at internal borders, and l 1957 city of Germany in two, dividing families t Treaty of Rome for economic growth by moderating swings in the opens its borders to Austria and the Berlin Wall goods and services can travel freely throughout and communities, and Europe, for the next Home computers run at u identifi es the convergence economic cycle. comes down – reuniting Europe. the Community, the largest integrated trading 1990s 28 years. several hundred MHz and dial-up r of economic policies as an bloc in the world. e important contribution internet connections are spreading. to promoting stability, a 1960s Th e Common Agricultural E-mail becomes common and video 1991 Th e European Council adopts the ‘Maastricht games take off . Th ere are 24 million rising standard of living and Policy is adopted to ensure secure and Spain and Portugal 1986 criteria’ – rules for EMU entry. Th ey place economic web servers worldwide by the end of closer relations between the stable food supplies by supporting join the Community – bringing constraints on governments to ensure suffi cient the decade. Member States. producers in the agricultural sector. Th e creation of the membership to 12 and adding 1968 Greece and the economic convergence is achieved for a single European customs union is the fi rst 1981 the peseta and the escudo to the drachma join the Community. currency area. important move towards growing currency basket. Th e ancient Greek drachma is economic integration. Customs remembered today by its ‘Athenian duties are removed, making 1979 Th e fi rst direct Political turmoil in the owl’ symbol which features on cross-border trade easier. Within 1973 elections to the Middle East sparks the fi rst Greek one-euro coins. In Madrid, European leaders agree 1989 Tim Berners-Lee, a scientist working at the Community, trade increases European Parliament 1989 ‘oil crisis’, causing worldwide President Delors’ three-stage timetable for the the European Organisation for Nuclear Research six-fold within two years. are held, allowing (CERN), invents the World Wide Web, a system economic and social disruption. Member State citizens to introduction of economic and monetary union, Denmark, Ireland and the United with a European Central Bank to manage the single for fi nding and sharing information across the vote for the candidate of internet. Kingdom join the European their choice. currency. Community, adding the krone, the punt and the pound to the currency basket. 1987 On the initiative of Jacques Delors, the Single European Act enters into force, preparing the ground for 1984 Th e personal CD player appears, matching the free movement of goods, services, capital and portability with the high sound quality of laser people. Th e deadline for completion of the single compact discs. Home computer speeds are nearly 1969 Th e Prime Minister of market is set at 1992. Luxembourg, Pierre Werner, 100 MHz with colour screens and more memory. Th e Bretton Woods proposes a three-stage process 1971 1978 To re-establish stability, the Bremen towards EMU and a single system, which links currencies European Council launches the European Monetary currency at a summit meeting in to the gold standard, is System (EMS), which holds exchange rates within a Th e Hague. Th e Member States abandoned owing to the Adopting an exchange rate mechanism (ERM),defi ned band. For the next decade the EMS contributes rising price of gold. Th is causes 1972 1981Th e fi rst successful personal computers are in adopt the Werner Plan in 1971. called ‘the Snake in the Tunnel’, the Member States much to exchange rate stability and trade in Europe. instability in international the shops – they fi t on a desktop, have black and white fi x their currencies against the US dollar to improve markets and a reduction in screens and run at 4.77 megahertz (MHz) with no hard “I see earth, it is so beautiful”, economic stability and give a new impetus to EMU. 1961 world trade. disk. Th e fi rst mobile phones also appear. are the fi rst words spoken from space. However, the ERM is soon abandoned following the Th e Soviet cosmonaut Yuri Gagarin is economic disruption of the oil crisis. Th e European Commission, Directorate-General for Economic and Financial Aff airs the fi rst man in space – in Vostok 1, Further info at: 1979 Th e Walkman® is launched – a stylish personal stereo launched on 12 April 1961. Valentina cassette player with good-quality sound. Th e young buy many Tereshkova becomes the fi rst woman in millions as music becomes portable. space in Vostok 6 in 1963. 1963 ‘Beatlemania’ sweeps the world. Th e Beatles, the fi rst pop http://ec.europa.eu/economy_fi nance/ super-group, attract huge crowds of 1970s Pop stars with fl ared trousers, platform shoes and long hair are a big infl uence on fashion. Girls wear Th e euro teenagers wherever they appear. Th ey 1969 “Th e eagle has ‘hot pants’, and punks – with their spiky dyed hair and http://ec.europa.eu/euro are hailed as a cultural revolution and landed”, reports the Apollo 1975 Th e European Space craze for body piercing – make their fi rst appearance. go on to become the best-selling band Computers are only Th e Europa website for the European Institutions in all Community languages 11 crew from the Sea of 1970s Agency is formed to conduct of all time. found in large organisations http://europa.eu Tranquillity on the Moon. independent space missions. Apollo Commander Neil and are big enough to fi ll Ariane 1, the fi rst ESA rocket, is Th e European Central Bank – including all euro banknote and coin designs Armstrong is the fi rst man a room. E-mail, with the @ launched on Christmas Eve 1979 http://www.ecb.eu to walk on the Moon’s separator, is invented in 1972. with a payload of communications surface, on 20 July 1969. Home stereo systems that play satellites. large vinyl records become ISBN: 92-7904580-6 widespread. KC-76-06-642-EN-C © European Communities, 2007

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