New Year's Day is the dawn of a new era in Europe, as 11 nations adopt a single currency, the euro. Now the official currency of 19 members of the European Union, as well as the nations of Kosovo and Montenegro, the euro's introduction had a profound effect on the global economy and was a watershed moment in the continent’s history.
By: History.com Editors
1999
The euro debuts
Published: November 24, 2009
Last Updated: March 02, 2025
How U.S. Currency Was Centralized
In 1838, U.S. Mint branches were opened across the country to fulfill the need for a centralized system of monetary exchange.
Beginning in the 1970s, European leaders had discussed creating a single currency. The plan became official with 1992 Maastricht Treaty, which formed the European Union and paved the way for the creation of a single European currency. The new currency's name was unveiled in 1995. On December 31, 1998 11 countries "locked in" their exchange rates relative to each other and to the euro. At midnight, their currencies officially ceased to exist. For the next three years, the "legacy currencies" remained legal tender, but electronic transfers and other non-physical monetary transactions began to use euros. Greece would join the Eurozone between this initial introduction and the currency's debut in physical form.
Mints throughout Europe printed 7.4 billion notes and struck 38.2 billion coins to ensure enough euros would be available by 1/1/2002. Banks issued "starter packs" containing small amounts of euros starting in December 2001 to familiarize people with the new money. Finally, a year later, the euro formally entered the world as legal tender. The first official purchase took place on the far-flung French island of Réunion, where euros were used to purchase a pound of lychees. Over the next two months, participating nations officially had two currencies in order to give people time to adjust. Businesses advertised prices both in euros and in legacy currencies, and some were accused of using the switch as an excuse to raise prices. Overall, however, the process of creating a new currency for a population of over 300 million people went remarkably smoothly.
The euro has long been a source of controversy. Conservatives in the United Kingdom opposed the idea of a European currency, and both the UK and Denmark negotiated opt-outs despite their membership in the EU. The eurozone's greatest test came during the European sovereign debt crisis, which began in 2009, as many central banks dealing in euros were unable to pay their debts and were bailed out by other eurozone nations or EU institutions. Despite continued concerns, seven EU nations have met the criteria and acceded to the euro since 2002, and the nations of Kosovo and Montenegro have also adopted it as their official currency.
Timeline
Also on This Day in History
Discover more of the major events, famous births, notable deaths and everything else history-making that happened on January 1st
Related Articles
1990s
The Euro: How a Common Currency Helped Europe Achieve Peace
Born in the ashes of World War II, the currency used by 19 European countries went into effect on January 1, 1999.
1990s
How a Petty Snub Led to Clinton’s Government Shutdown—and the Lewinsky Affair
Newt Gingrich was offended that Clinton hadn't talked to him on Air Force One.
1990s
‘Linda Tripp Offered Me the Blue Dress’: Revelations from the Man Who Uncovered the Clinton-Lewinsky Scandal
When Michael Isikoff broke the story of Ken Starr's investigation into the Lewinsky affair 20 years ago, he had no idea how much it would change the presidency and the country.
1990s
When the ‘Capitol Crawl’ Dramatized the Need for Americans with Disabilities Act
The 1990 protest demonstrated the barriers that inaccessible buildings create for people with disabilities.
About the author
HISTORY.com works with a wide range of writers and editors to create accurate and informative content. All articles are regularly reviewed and updated by the HISTORY.com team. Articles with the “HISTORY.com Editors” byline have been written or edited by the HISTORY.com editors, including Amanda Onion, Missy Sullivan, Matt Mullen and Christian Zapata.
Fact Check
We strive for accuracy and fairness. But if you see something that doesn't look right, click here to contact us! HISTORY reviews and updates its content regularly to ensure it is complete and accurate.
Citation Information
- Article title
- The euro debuts
- Author
- History.com Editors
- Website Name
- History
- Date Accessed
- March 25, 2025
- Publisher
- A&E Television Networks
- Last Updated
- March 02, 2025
- Original Published Date
- November 24, 2009
History Every Day
Sign Up for "This Day in History"
Uncover fascinating moments from the past every day! Learn something new with key events in history, from the American Revolution to pop culture, crime and more.
By submitting your information, you agree to receive emails from HISTORY and A+E Global Media. You can opt out at any time. You must be 16 years or older and a resident of the United States.
More details: Privacy Policy | Terms of Use | Contact Us
