The European Common Currency

On 1 January 2002 euro notes and coins replaced the familiar national currencies in the 12 countries adopting the common currency. Today, there is in excess of 450 billion Euros in Euro notes in circulation. Austria, Germany, Luxembourg, Belgium, Greece, Netherlands, Finland, Italy, Portugal, France, Ireland, Spain relinquished their national currencies in favour of the Euro. In addition, the new currency is used in Monaco, The Vatican, San Marino, Andorra, Kosovo and Montenegro. Whatever one's view of the rights or wrongs of Britain adopting the Euro, there is little doubt that for the tourist, it has made life a whole lot easier. The currency is simplicity itself for travellers, and it makes assessment of relative value of goods and services between countries very much easier.

There are seven euro bank notes: 5, 10, 20, 50, 100, 200 and 500 and eight coins: 1 cent, 2 cent, 5 cent, 10 cent, 20 cent, 50 cent and 1 and 2 euro. The notes are smaller than sterling notes and incorporate illustrations of bridges, gateways and windows; they are designed to reflect the national identity of the country of issue, but are useable in any of the eurozone countries. Euro notes also include a watermark, security thread and a hologram showing the value and the euro symbol. The coins are different on one side in each country, but can be used in any of the twelve countries. Images of the coins are available at www.euro.ecb.int

The value of the Euro has seem some quite substantial fluctuations. In the year to date (May 2004) the euro has been worth 65p to 72p, a fluctuation of c10%. Some economists predict that the rate will eventually stabilize around 74p, but there is little sign of stability at present. Up-to-date exchange rates can be found in most newspapers and at the European Central Bank web site at: www.euro.ecb.int They also offer a currency converter and there is a useful leaflet on the Euro at www.euro.gov.uk/trav_leaflet.asp

Credit card use is unaffected but if you pay for purchases with a debit or credit card, your account will be debited by the sterling equivalent of the euro.

The 2004 accession of Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia did not automatically mean that they will use the Euro. Before they can do so, they will have to meet the stringent criteria for membership and for some, that looks a distance away.