1. INSIDE THE EUROZONE

2. The Euro
The euro was launched in 1999 as an electronic currency, and in 2002 as a cash currency. Its creation was not only an economic act, but also a political act designed to help expand the international financial and political reach of the EU.
As far as ordinary Europeans were concerned, opinion on the euro was at first doubtful, but then solidified in most EU states.
The euro started out well, with optimistic speculation that it would quickly become a world class currency.
The global economic crisis - followed by the Greek and Irish debt crises – undermined confidence in the currency.

3. The Fluctuating Euro

4. The Euro in the World
Immediately upon its creation the euro became the world’s second largest reserve currency, leading to speculation that it might pose a serious challenge to the US dollar.
But after its share of reserves grew to just over 25% it appeared to have settled onto a kind of plateau, lagging well behind the 60-65% share of the US dollar.
Problems include the lack of clear leadership within the European Central Bank and the ECB’s lack of controls over fiscal policy.
The Greek crisis not only revealed the dangers to the eurozone of mismanagement and incompetence in even a single member state, but raised wider questions about the long-term future of the euro.