1992: Maastricht Treaty Provisions
The 1992 Maastricht Treaty laid the groundwork for the establishment of the euro. To join the common currency, member states were expected to adhere to stringent criteria.
1992: Maastricht Treaty Signed
The Maastricht Treaty, signed in 1992, obligated a majority of EU member states to adopt the euro as their currency. However, these countries had to first meet specific monetary and budgetary requirements, which not all participating nations ultimately achieved.
1993: New EU Members and Euro Adoption
All the countries that have joined the European Union since 1993 have committed to adopting the euro as their official currency eventually.
August 1995: Suggestion for the Name "Euro"
Germain Pirlot, a Belgian Esperantist and former teacher, is credited with suggesting the name "euro" for the single European currency in a letter sent to Jacques Santer, the then-President of the European Commission, on August 4, 1995.
December 1995: Euro Name Adoption
In December 1995, during a meeting in Madrid, the name "euro" was officially chosen for the new European currency.
December 1995: Official Adoption of the Name "Euro"
The name "euro" was officially chosen for the new European currency in Madrid on December 16, 1995.
1995: Sweden Joins the EU
Sweden joined the European Union in 1995, following the signing of the Maastricht Treaty. This meant they were not initially part of the agreement.
December 1998: Euro Exchange Rates Determined
On December 31, 1998, the exchange rates for the euro against the national currencies of the participating nations were officially determined. These rates were based on market rates and were set to ensure a 1:1 conversion between the European Currency Unit (ECU) and the euro.
1998: Cuba Adopts Euro as Foreign Trading Currency
Cuba began using the euro as a foreign trading currency in 1998.
1998: Impact of the Euro on Investment
Following the introduction of the Euro, physical investment in the eurozone increased by 5%, and the euro made it easier for firms to access financing, especially in countries that previously had weaker currencies.
1998: Euro and European Identity
Wim Duisenberg, European Central Bank Governor, stated in 1998 that the creation of the euro was partly intended to foster a closer sense of joint identity among European citizens.
January 1999: Introduction of the Euro
The euro was introduced on January 4, 1999, and its exchange rate against other major currencies subsequently fluctuated.
January 1999: Euro Introduced to Financial Markets
On January 1, 1999, the euro was introduced to the world's financial markets as an accounting currency. It replaced the European Currency Unit (ECU) at a 1:1 ratio, with an initial value of US$1.1743.
January 1999: Non-Physical Introduction of the Euro
At midnight on January 1, 1999, the euro was officially introduced, but only in non-physical forms like traveler's checks, electronic transfers, and banking transactions. This marked the end of the independent existence of the national currencies of the participating countries, known as the eurozone.
December 1999: Euro Trading Below US Dollar
From December 1999 to December 2002, the euro consistently traded at a lower value than the US dollar in the global currency market.
1999: Euro Introduced with Deficit and Debt Rules
When the euro launched in 1999, it came with rules to limit a country's annual deficit to three percent of GDP and accumulated debt to sixty percent of GDP.
1999: Euro Introduced as Second Most Held Reserve Currency
Upon its introduction in 1999, the euro became the second most widely held international reserve currency, holding an 18% share.
2000: Euro Exchange Rate Fluctuations
After its introduction, the euro's exchange rate against other major currencies fell, reaching its lowest point in 2000.
2000: Euro and European Identity
French Finance Minister Laurent Fabius echoed the sentiment in 2000 that the euro was intended to promote a shared European identity.
2000: Euro and Price Convergence
Studies on price convergence in the eurozone after the euro's introduction in 2000 showed mixed results, with some finding no convergence and others finding convergence in specific sectors like cars.
December 2001: Germany's Mark Ceases to be Legal Tender
December 2001 marked the date when Germany's mark officially ceased to be legal tender, although the exchange period lasted for two more months.
2001: Treaty of Nice
The Treaty of Nice was signed in 2001 to amend the existing Maastricht Treaty. The goal was to address inconsistencies and close loopholes present in both the Maastricht and the preceding Treaties of Rome.
January 2002: Joint Issuance of Euro Banknotes
Since January 1, 2002, the national central banks (NCBs) of participating countries and the European Central Bank (ECB) have been jointly responsible for issuing euro banknotes.
January 2002: Introduction of Euro Notes and Coins
The physical euro notes and coins were introduced on January 1, 2002, making it the day-to-day currency for transactions. However, the old national currencies continued to be accepted as legal tender alongside the euro until they were entirely phased out.
January 2002: Physical Euro Launch
The physical euro, including both coins and banknotes, entered circulation on January 1, 2002. This marked the day the euro became the official currency for everyday transactions in the original member nations.
February 2002: End of Euro Changeover Period
On February 2002, the changeover period during which the former currencies' notes and coins were exchanged for those of the euro ended. However, the official date on which the national currencies ceased to be legal tender varied from member state to member state.
March 2002: Complete Replacement of Former Currencies
By March 2002, the euro had completely replaced the previous national currencies of the participating nations. This marked the euro's complete transition as the sole legal tender in the eurozone.
December 2002: Portuguese Escudos Become Non-Convertible
By December 2002, the Portuguese escudos ceased to have monetary value, becoming the earliest coins to become non-convertible, although banknotes remained exchangeable until 2022.
December 2002: End of Euro Trading Below US Dollar
After December 2002, the euro ceased to trade below the US dollar, marking a turning point in its value.
2002: Euro and European Identity
Romano Prodi, President of the European Commission, reiterated in 2002 that the euro was partly designed to foster a sense of shared European identity.
2002: Initial Design of Euro Coins
In 2002, all circulating euro coins featured a standard design. This design included a common side displaying the denomination or value superimposed on a background map of the then 15 member states of the European Union.
2003: Swedish Referendum on the Euro
In 2003, Sweden held a referendum where citizens voted against adopting the euro. While this referendum was not legally binding, it effectively allowed Sweden to avoid the obligation of adopting the euro by strategically not meeting the necessary monetary and budgetary criteria.
2003: Euro and Price Convergence
Studies suggested that the process of price convergence in the eurozone, which began in the early 1990s, may not have been linear, slowing down between 2000 and 2003 before resurging.
2004: Commemorative €2 Coin for the 2004 Olympics
Greece issued a commemorative €2 coin in 2004 to mark the occasion of the Summer Olympics being held in Athens.
2005: Sovereign Military Order of Malta Adopts Euro Denominations for Stamps
Since 2005, the Sovereign Military Order of Malta has denominated its stamps in euros, despite the Maltese scudo remaining its official currency, pegged to the euro.
2006: Syria Adopts Euro as Foreign Trading Currency
Syria started using the euro as a foreign trading currency in 2006.
September 2007: Alan Greenspan on the Euro's Potential
In September 2007, former Federal Reserve Chairman Alan Greenspan suggested that the euro could potentially replace or become as important as the US dollar as a reserve currency.
2007: Updated Design of Euro Coins
Starting in 2007, the euro coins' design was updated. The previous map, depicting only the original 15 EU member states, was replaced with a map of Europe that included countries outside of the EU. However, the 1-, 2-, and 5-cent coins retained their original design.
2007: Financial Crisis and the Eurozone
The financial crisis of 2007-2008 exposed the instability of the increased public and private debt levels in some eurozone countries, leading to bailouts and contributing to the European sovereign-debt crisis.
2007: Global Financial Crisis and the Euro
The global financial crisis initially caused the euro to fall, but it later regained value.
July 2008: Euro Reaches Peak Value Against US Dollar
On July 18, 2008, the euro reached its highest recorded value against the US dollar, peaking at US$1.60. This marked a significant milestone in the euro's relatively short history.
2008: Completion of Euro Coin Design Update
By 2008, the process of updating the euro coin design, which began in 2007, was completed across all participating countries.
2008: U.S. Financial Crisis Impacts Eurozone
The U.S. financial crisis in 2008 led to fears of a sovereign debt crisis among some European states.
2008: Euro Exchange Rate Peaks
The euro's exchange rate reached its historical highest point in 2008.
2008: Euro's Share as Reserve Currency Increases
The euro's share as a reserve currency increased to 27% by 2008.
2008: Financial Crisis and the Eurozone
The financial crisis of 2007-2008 exposed the instability of the increased public and private debt levels in some eurozone countries, leading to bailouts and contributing to the European sovereign-debt crisis.
2009: Studies on the Euro's Impact on Trade
In 2009, studies suggested that the euro increased trade within the eurozone by 5% to 10%, though later analyses suggested that this effect might be negligible or due to other factors.
2009: Zimbabwe Adopts Euro and US Dollar
Zimbabwe abandoned its local currency in 2009 and introduced major global convertible currencies, including the euro and the United States dollar.
2009: Euro and Price Convergence
A 2009 study suggested that price convergence in the eurozone, which had slowed between 2000 and 2003, resurfaced after 2003.
January 2010: São Tomé and Príncipe's Dobra Pegged to the Euro
On January 2010, the dobra of São Tomé and Príncipe was officially pegged to the euro.
2010: Euro Area Government Debt/GDP Ratio
The euro area's government debt/GDP ratio in 2010 was about 86%, similar to that of the United States.
2010: Eurozone Crisis Intensifies
The situation surrounding the sovereign debt crisis became particularly tense in early 2010, affecting several Eurozone members.
November 2011: Euro Exchange Rate During Sovereign Debt Crisis
Despite the European sovereign-debt crisis, the euro remained relatively stable, with its exchange rate index in November 2011 at a similar level to before the crisis began in 2007.
2011: Economist Intelligence Unit Analysis of the Eurozone
In 2011, the Economist Intelligence Unit analyzed the euro area's economic and fiscal position, finding it to be comparable to or better than that of the US or the UK.
2012: Germany Receives Debt-Rating Warning
In 2012, Germany received a debt-rating warning despite its strong creditor position, drawing parallels to the 1931 crisis.
2013: Population Using Euro-Pegged Currencies
As of 2013, approximately 182 million people in Africa, 27 million outside the eurozone in Europe, and 545,000 on Pacific islands used currencies pegged to the euro.
January 2014: Interest Rate Changes After Euro Introduction
By January 2014, interest rates in many eurozone countries, particularly those that previously had weaker currencies, decreased significantly following the euro's introduction.
2018: Venezuela Adopts Euro as Foreign Trading Currency
Venezuela adopted the euro as a foreign trading currency in 2018.
April 2019: Discontinuation of the €500 Banknote
The issuance of the €500 banknote was officially discontinued on April 27, 2019, marking the end of its production and distribution. However, it is essential to note that both the first and second series of euro banknotes, including the discontinued €500 note, remain legal tender across the eurozone.
December 2019: Euro Usage Statistics
As of December 2019, the euro, with over €1.3 trillion in circulation, had one of the world's highest combined values of banknotes and coins in circulation. It was the second-most traded currency globally, trailing only the US dollar.
December 2021: Redesign of Euro Banknotes Announced
The European Central Bank (ECB) revealed its plan to introduce redesigned euro banknotes by 2024.
July 2022: Euro and US Dollar Reach Parity
For the first time in almost two decades, the euro reached parity with the US dollar on July 13, 2022. This event was partly influenced by the ongoing conflict sparked by the 2022 Russian invasion of Ukraine.
2022: End of Portuguese Escudo Exchange
By 2022, Portuguese escudo banknotes ceased to be exchangeable, marking the complete transition to the Euro in Portugal.
2022: Euro-Dollar Parity
In mid-July 2022, the euro reached parity with the US dollar for a short time.
2023: Eurozone Population
As of 2023, the eurozone, consisting of 20 EU member states using the euro as their sole currency, has a population of approximately 347 million people.
2023: Euro Adoption and Inflation in Croatia
Based on the introduction of the euro in Croatia in 2023, the European Central Bank (ECB) argued that inflation due to a currency change is a one-time effect with limited impact.
2024: Target for New Banknote Design
The European Central Bank (ECB) aims to have the redesigned euro banknotes ready for circulation by 2024.