The euro is the currency of twelve European Union member states. It was established in 1992 by the Maastricht Treaty to create an economic and monetary union. The euro is administered by the European System of Central Banks and used initially by Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain at fixed conversion rates. Adopting the euro has eliminated exchange rate fluctuations and reduced transaction costs between member states while expanding their financial and labor markets.

1. EURO
The euro (symbol: €;
banking code: EUR) is the
currency of twelve
European Union member
states

2. The Twelve
 Austria
 Belgium
 Finland
 France
 Germany
 Greece
 The Republic of Ireland
 Italy
 Luxembourg
 The Netherlands
 Portugal
 Spain

3. History
 The euro was established by the
provisions in the 1992 Maastricht
Treaty on European Union that was
used to establish an
economic and monetary union
 The euro is administered by the
European System of Central Banks
(ESCB), composed of the
European Central Bank (ECB) and the
Eurozone central banks operating in
member states

4. The definitive values in euro of these subdivisions (which
represent the exchange rates at which the currency
entered the euro) are as follows:
 Country Rate
 Austria 13.7603
 Belgium 40.3399
 Finland 5.94573
 France 6.55957
 Germany 1.95583
 Greece 340.750
 Ireland 0.787564
 Italy 1936.27
 Luxembourg 40.3399
 Netherlands 2.20371
 Portugal 200.482
 Spain 166.386

5. A New Reserve Currency
 The euro will probably become one of
the major global reserve currencies.
Currently, international currency
exchange is dominated by the
American dollar.
 If the euro were to become a reserve
currency it would benefit member
countries by lowering the on their
debts.

6. The Euro and Oil
 The Eurozone consumes more imported
petroleum than the United States. This
would mean that more euros than US
dollars would flow into the OPEC nations,
but oil is priced by those nations in US
dollars only
 There have been frequent discussions at
OPEC about pricing oil in euros, which
would have various effects, among them,
requiring nations to hold stores of euros to
buy oil, rather than the US dollars that they
hold now

7. Euro Exchange Rate Against USD
 After the introduction of the
euro, its exchange rate against
other currencies, especially the
US dollar, declined heavily.

8. Advantages of the Euro
 Elimination of exchange-rate fluctuations
 Transaction costs
 Price parity
 Increased trade across borders
 Increased cross-border employment
 Simplified billing
 Expanding markets for business
 Financial market stability
 Macroeconomic stability
 Lower interest rate
 Structural reform for European economies