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Research Papers on the Euro

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The European Community, consisting of 12 members representing 12 countries, including the following:

These nations all engaged in efforts to join in monetary and economic union as well as the establishment of joint policies on defense, citizenship, and the protection of the environment.  The European Community later became called the European Union (EU) and developed the Maastricht Treaty which was signed on February 7, 1992.  The Masstricht Treaty granted European citizenship to each of the member states, relaxing border controls between countries.  It also led to the development of joint foreign and monetary policies which eventually led to the need for a single currency, the European Currency Unit (ECU) Plans were also initiated for the development of a central bank to coordinate the monetary policies of the central banks of the member states.

Britain and Denmark were reluctant to give up national control over their monetary policies and were more disturbed by the condition of the treaty that all member states had to approve the European Union.  Disagreement resulted related to issues of the recommended increased economic cooperation by members. Denmark finally agreed to the plans for economic cooperation while Britain ratified the treaty without supporting a common European currency.

On January 1, 1999, the euro was introduced when eleven members of the European Union replaced their national currencies this single European currency. The bills and coins of the eleven members circulated until January, 2002; however, the euro is now utilized by all inter-bank commerce and stock exchange trades. 

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