The document summarizes the history of currencies in the European Union from early ideas of economic coordination to the creation and growth of the Euro. It discusses the Maastricht Treaty in 1992 that set the stage for a single currency. It describes the three stages of development and relaunch in the 1990s that led to the 1999 launch of the Euro in non-physical form. The transition from legacy currencies to euros from 1999-2002 is also summarized along with the early growth and public support for the Euro. The document concludes with discussing the recession era in the late 2000s that prompted fiscal agreements and bailout funds and the enlargement of countries joining the Eurozone.

1. History of
Currencies
in the EU
After Maastricht Treaty in 1992
Aalif Hossain Shaan (KROADI)
Ajike Precious (HHAJ4S)
Zheng Peng (CY0E8B)
Sabina Novruzova (IKL32T)
Adam Suto (GE7BP2)
Sagita Fajarahayu (I0S5QT)
Prepared By:
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Economic History Group Project
Today's Agenda
Development - Early Ideas, Relaunch, Second Stage
Creation - Launch, Minting, Currency Transition
Creation - Aftermath, Early Growth, Public Support
Recession Era - Lisbon Treaty, Early Response, Bailout Funds
Recession Era - Fiscal Agreements, Enlargement (Slovenia,
Cyprus, Malta, Slovakia, Baltic States), Public Opinion
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2
3
5
4
Current Update
6

2. Creation of European System of Central
Banks
Removal of exchange rate controls
Liberalization of capital movement in
the EEC
In 1986 a plan was set to introduce the
EMU in three stages, Which are:
In 1992 the Maastricht Treaty was signed
which included the creation of one currency
Relaunch
Began in 1992 with the creation of
European Monetary Institute
In 1995 the name euro was selected
for the new currency
1997 the European council decided to
adpot the Stability and Growth Pact
In 1998 the European Central Bank
succeeded the European Monetary
Institute
Second Stage
DEVELOPMENT
First Ideas to create and economic and
monetary union between the members
of European Economic Community
was discussed in 1969
The goal was for greater coordination
and the reduce exchange rate volatility
In 1986 the SIngle European Act
formalized political cooperation within
the EEC
Early Ideas

3. CREATION
Eurozone, 1999–2002
1.Launch
1 January 1999 - In Non
Physical Form
Started at US$1.1686 on 31
December 1998 and rose
during its 1st day of trading
at 4 January 1999, closing at
approximately US$1.18.
2.Minting
The designs (new coins &
notes) announced between
1996 and 1998,
Production began on 11 May
1998.
7.4 billion notes and 38.2
billion coins available to
public on 1 January 2002
3.Currency Transition
The new coins and notes
were first valid on the French
island of Réunion in the
Indian Ocean, for one kg of
lychees.
Banks would accept the
exchange of legacy
currencies, begin to dispense
euros from ATMs, and only
euros would be available for
withdrawals (Except for
Germany)
All ATMs in 7 countries and at
least 90 percent in 4 others
were issuing euros rather
than legacy currency
Some businesses did take
advantage of the currency
exchange to raise prices,
though defaulters were
mandated to pay
compensation to customers.

4. CREATION
Aftermath
Considering the differences between countries,
Nations were allowed to keep legacy currency in
circulation as legal tender for two months, until 28
February 2002. The earliest date was in Germany; the
Deutsche Mark officially ceased to be legal tender
after 31 December 2001. Most member states,
though, permitted their legacy currency to remain in
circulation for the full two months. The legacy
currency was exchangeable at commercial banks in the
currency's nation for a further period, generally until
30 June 2002.
01
Early Growth
02
Public Support Public support for the euro in each state between 2007 and 2021.
03
Source: European Commission
So, what is Hungary's
attitude towards the
euro?

5. RECESSION ERA
Lisbon Treaty
Formalized Eurogroup in 2009
Appetite for stronger economic co-
operation grew due to the recession and the
potential failure of some weaker eurozone
members
Eurozone leaders held an extraordinary
summit in reaction to the financial crisis on
11 October 2008 in Paris
Bailout Funds
Eurozone leaders agreed to provisions for
bailing out member states who could not raise
funds (triggered for Greece in April 2010)
A temporary bailout mechanism was agreed
upon and devised in the form of a special-
purpose vehicle (SPV) named "European
Financial Stability Facility"
In June 2010, broad agreement was finally
reached on a controversial proposal for member
states to peer review each other's budgets prior
to their presentation to national parliaments
In June 2010 France agreed to back Germany's
plan for suspending the voting rights of
members who breach the rules
In late 2010/early 2011, it was agreed to replace
the European Financial Stability Facility and
European Financial Stability Mechanism with a
larger and permanent European Stability
Mechanism (ESM).
Early Response
Hundreds of billions of euros of new
initiatives to head off a feared
meltdown
Governments would buy into banks to
boost their finances and guarantee
interbank lending
Jean-Claude
Juncker, President
of the Eurogroup
from 2005 to 2013

6. Fiscal Agreement
Stability and Growth pact rework (2011)
Treaty on Stabilty, Coordination and
Governance (2012-13)
Title III -Fiscal Compact
Slovenia - 2007
RECESSION ERA
Cyprus - 2008
Malta - 2008
Slovakia - 2009
Baltic states
Estonia - 2011
Latvia - 2014
Lithuania - 2015
ENLARGEMENTS

7. 19 from 27 EU Countries are now using Euro
EU COUNTRIES
CURRENT UPDATE
NON EU

8. REFERENCE
Historical Background of Euro Currency and its Race to Catch US Dollar.
International Financial Market. Synergy (Jan, 2011), Vol. IX No. I. Author: Dr.
Navneet Gera, Prof Som Deo, Dr. Anoop Pandey 3
The future of the dollar–euro exchange rate. The North American Journal of
Economics and Finance Vol. 13, Issue 1, May 2002, P. 56-71. Author: Simon
Neaimea & John. Paschakis
Zooming out: The trade effect of the euro in historical perspective. Journal of
International Money and Finance 27 (2008) 1244–1260. Author: Helge Berger &
Volker Nitsch
EU unification and linkages among the European currencies: new evidence from
the EU and the EEA. Research in International Business and Finance 41 (2017)
28–36. Author: Nikolaos Stoupos & Apostolos Kiohos
History of the Euro https://youtu.be/dIUktr3Zpyk
The Euro Explained: The History & How Countries Join - TLDR Explains
https://youtu.be/7gKQs7fB3p0
History of the Euro Currency and the Eurozone https://youtu.be/PdLr3lTSyns
History of the Euro in 2 minutes https://youtu.be/Rp_ak9uDZfY
https://en.wikipedia.org/wiki/History_of_the_euro#Bailout_funds
Researchgate.net:
Sciencedirect.com:
Youtube:
Others:
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