The euro, the common currency of the European Union (EU) celebrates 20 years of its entry into circulation on January 1, during which time it has become the second most used in the world after the US dollar. The EU commemorates the date as it faces the economic impact of the Covid-19 pandemic and drives its financial recovery.
Twenty years of the euro, a milestone of unity despite the challenges. On January 1, 2002, the currency began to circulate for 12 of the then 15 member countries of the European Union (EU).
Belgium, Germany, Ireland, France, Italy, Luxembourg, the Netherlands, Austria, Portugal, Finland, Greece and Spain were the first to replace their national currencies with a common one. Today there are 27 countries that make up the EU and 19 that use the euro.
“Clearly, Europe and the euro have become inseparable. And for young Europeans, who have only known the single currency, it must be almost impossible to imagine Europe without it,” stressed the director of the European Central Bank (ECB) and former leader from the International Monetary Fund (IMF), Christine Lagarde.
Currently, the euro is the second most used type of capital on the planet, representing 20% of the world’s foreign exchange reserves; while the US dollar is the first, with 60%.
For the commemoration of its first two decades, the building of the European Central Bank, based in Frankfurt, Germany, offered a light show in the first minutes of this January 1, which coincided with the New Year celebrations.
The building will continue to be illuminated in colors every night until next January 9, with information on the euro that will be available in 15 European languages.
“The euro is one of the most powerful currencies in the world” and is “a strong symbol of unity,” said the president of the European Commission, Ursula Von der Leyen, through her Twitter account.
For his part, the President of the European Council, Charles Michel, underlined in a statement that “it is a concrete symbol of success that our citizens carry, every day, in 19 of the 27 member states, and in the pockets of almost 350 million of citizens “.
The euro is considered one of the main achievements of the European Union, as well as a pillar of strength of the community bloc.
The main challenges of the second most used currency in the world
Its twenty-second anniversary also comes at a time when the union of 27 countries deals with the economic impact generated by the Covid-19 pandemic, after business closures, job losses, cessation of industrial operations and the disbursement of millionaire aid packages for citizens in the midst of the suffocating crisis.
After the first year of the health emergency, the EU announced a long-term budget covering the period 2021-2027. It includes a total of 2,018 billion euros to boost the recovery.
Brussels notes that this is the largest stimulus package ever funded in Europe, which in turn will help the bloc to become more green, digital and resilient.
“The new long-term budget will increase flexibility mechanisms to ensure its ability to cope with unforeseen needs. It is a budget prepared not only for current realities, but also for future uncertainties, ”said an official EU statement.
In addition, the ECB implemented a huge bond purchase scheme to keep borrowing costs low and boost economic growth.
In recent years, the community of countries using the euro has faced other challenges, notably a debt crisis that started in Greece and spread to other nations. In addition, financial bailouts were granted to Ireland, Portugal, Spain and Cyprus. But in return, austerity measures were imposed on those economies.
The euro zone “has proven its worth in tackling big challenges and major crises,” said Irish Finance Minister and Eurogroup Director Paschal Donohoe.
However, members of the finance Eurogroup also admitted in a joint article that “it is fair to say that the euro has had a rough first two decades.”
Redesign of your tickets
Currently, euro banknotes feature various red, blue and orange notes and illustrations of generic Gothic, Romanesque and Renaissance architecture typical of the continent.
In December 2021, the European Central Bank announced that it plans a redesign of its currency, with the collaboration of European citizens on possible themes for future banknotes.
In addition, the European Central Bank is studying the possibility of having a digital version of the currency.
“After 20 years, it is time to update the appearance of our banknotes so that Europeans of all ages and backgrounds can identify with them,” said Lagarde, adding that the euro zone currency “is here to stay.” He added that it is a tangible and visible symbol of unity in Europe, especially in times of crisis, and its demand remains strong.
A final decision on the new banknote design is expected in 2024.
With AP, EFE and local media
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