First, I’ll read the slides Second, I’ll check understanding and vocabulary Finally, you’ll do some exercises in your notebook.
ECU means the European Currency Unit. Created in 1979. Limited use. Replaced in 1999 by the euro. In1992 it was planned to introduce a single currency by the year 2000. In January 1999, the euro was launched as an electronic currency. In January 2002, euro notes and coins became legal tender.
1979 1992 1999 2002 Launching of the euro as an electronic currency Euro notes and coins become legal tender The ecu is replaced by the euro The introduction of a single currency is planned Creation of the ecu
16 EU countries use the euro: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Low Countries, Portugal, Slovakia, Slovenia and Spain. The whole group is known as the Eurozone or as the Economic and Monetary Union (EMU). The other 11 EU countries that have not adopted the euro are: Bulgaria, Czech Republic, Denmark, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Sweden and United Kingdom.
Andorra, Monaco, San Marino, the Vatican, Montenegro and Kosovo use the euro but don’t take part in its economic policy. Denmark, Sweden and the United Kingdom can decide whether to adopt the euro or not. The countries that accessed the EU in 2004 and 2007 have to switch to the euro when told by the ESCB. Four of them: Cyprus, Malta, Slovakia and Slovenia have already gone over to the euro.
Austria Sweden Bulgaria Kosovo It is obliged to adopt the euro when the EU considers it appropriate It has adopted the euro, but don’t take part in its economic policy It has already adopted the euro as its currency It can decide whether wants to adopt the euro or not
The European Central Bank (ECB), in Frankfurt, sets the interest rate for the whole Euro zone. The European System of Central Banks consists of the central banks of the Member States and the ECB. It coordinates Euro zone monetary policies. The ECOFIN or Council of Finance Ministers sets broad economic policy guidelines for all the European Union. The Euro Group is the meeting of the finance ministers of the Eurozone.
Politically, its supporters argue that the euro strengthens the European Union and helps promote cooperation and stability in Europe. Economically, it complements the European single market (1), contributes to the free movement of goods and capital (2) and makes life easier for people by removing the costs of changing money (3).
Politically, it erodes national sovereignty: national governments will be no longer able to shape their economic policy. Economically, the Euro zone countries are very different. Socially, voters feel they do not control the decision-making process.