EU nations participating in "Euroland" include Austria, Belgium, Finland, France, Germany, Holland, Ireland, Italy, Luxembourg, Spain and Portugal. The euro will also be adopted by Monaco, which now relies on the French franc. Opting out at this time are EU members Britain, Denmark and Sweden. Greece hopes to qualify in the near future. The value of the euro has been made equal to that of the European Currency Unit, little-known to U.S. travelers. However, the ecu "basket" includes the British, Danish and Greek currencies, which will not be reflected in the euro; and does not include the Austrian and Finnish currencies, which will be. Thus the euro’s value may lurch somewhat after its Jan. 1 inauguration. |
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On Jan. 4, 1999, the euro comes to life as the single currency of 11 nations
in "Europe’s single most daring venture of our time,"
according to Jacques Santer, president of the European Union.
The euro will cover nearly 300 million people and a vast economy comparable
to that of the U.S. It is now projected to trade at roughly $1.17, give or
take a few cents. EU nations participating in "Euroland" include Austria, Belgium, Finland, France, Germany, Holland, Ireland, Italy, Luxembourg, Spain and Portugal. The euro will also be adopted by Monaco, which now relies on the French franc. Opting out at this time are EU members Britain, Denmark and Sweden. Greece hopes to qualify in the near future. But because the euro will not immediately replace national currencies, American visitors will experience relatively little impact over the coming year. All transactions with paper money and coins will continue in national currencies through Jan. 1, 2002; only then will euro notes and coins be issued. During the three-year transition period, the euro will be limited to electronic transactions. Some more specifics on what to expect during the transition period:
With the inauguration of euro notes and coins on Jan. 1, 2002, U.S. visitors would begin receiving only euros when exchanging dollars in banks and at ATM machines, although they will still encounter national currencies in transactions with individuals and businesses. Withdrawal of francs, marks, lire, etc. will begin Jan. 1, 2002, to be completed by July 1, 2002. At that date, the euro will stand alone in the 11 participating countries, just as the dollar stands alone in the 50 American states.
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