The euro debuts
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.