Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. They write new content and verify and edit content received from contributors.
The euro is the monetary unit and currency of the European Union, represented by the symbol €. It began as a noncash monetary unit in 1999 before being issued as currency notes and coins in 2002. The euro replaced the national currencies of participating EU states and some non-EU states.
When was the euro created?
The euro originated in the 1991 Maastricht Treaty, in which the 12 original member countries of the European Community (now the European Union) created an economic and monetary union and a corresponding common unit of exchange. The new currency, the euro, was officially issued on January 1, 1999. Although its use was initially limited to financial markets and certain businesses, participating member states began using euro currency notes and coins in 2002.
What country is the newest member of the euro zone?
The newest member of the euro zone is Bulgaria. On January 1, 2026, the country transitioned from the Bulgarian lev to the euro as its official currency.
Open full sized image
Map indicating which members of the European Union use the euro as their national currency.
The euro is the monetary unit and currency of the European Union (EU). It was introduced as a noncash monetary unit in 1999, and currency notes and coins appeared in participating countries on January 1, 2002. After February 28, 2002, the euro became the sole currency of 12 EU member states, and their national currencies ceased to be legal tender. Nine more EU states subsequently adopted the euro as their national currency. The euro is represented by the symbol €.
The treaty called for a common unit of exchange, the euro, which built on the earlier European currency unit (ecu), and set strict criteria for conversion to the euro and participation in the EMU. These requirements included annual budget deficits not exceeding 3% of gross domestic product (GDP), public debt under 60% of GDP, exchange rate stability, inflation rates within 1.5% of the three lowest inflation rates in the EU, and long-term inflation rates within 2%. Although several states had public debt ratios exceeding 60 percent—the rates topped 120% in Italy and Belgium—the European Commission (the executive branch of the EU) recommended their entry into the EMU, citing the significant steps each country had taken to reduce its debt ratio.
Introduction of the common currency
Learn why the European Union developed its own currency.
Encyclopædia Britannica, Inc.
Supporters of the euro argued that a single European currency would boost trade by eliminating foreign exchange fluctuations and reducing prices. Although there were concerns regarding a single currency, including worries about counterfeiting and loss of national sovereignty and national identity, 11 countries (Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain) formally joined the EMU in 1998. Britain and Sweden delayed joining, though some businesses in Britain decided to accept payment in euros. Voters in Denmark narrowly rejected the euro in a September 2000 referendum. Greece initially failed to meet the economic requirements, but was admitted in January 2001 after overhauling its economy.
In 2007 Slovenia became the first former communist country to adopt the euro. Having demonstrated fiscal stability since joining the EU in 2004, both Malta and the Republic of Cyprus adopted the euro in 2008. Other countries that have adopted the currency include Slovakia (2009), Estonia (2011), Latvia (2014), Lithuania (2015), Croatia (2023), and Bulgaria (2026). The 21 participating EU countries are known as the euro area, euroland, or the eurozone.
Overview of the European Central Bank, including a discussion of the euro.
In 1998 the European Central Bank (ECB) was established to manage the new currency. Based in Frankfurt, Germany, the ECB is an independent and neutral body headed by an appointed president who is approved by all member countries to serve an eight-year term. The euro was launched on January 1, 1999, replacing the precursor ecu at a 1:1 value. Until the circulation of currency notes and coins in 2002, the euro was used only by financial markets and certain businesses. At its launch, many experts predicted that the euro could eventually rival the U.S. dollar as an international currency.
Unlike many of the national currencies they replaced, euro banknotes do not depict real people or national landmarks. Instead, the colorful bills feature stylized architectural imagery—arches, bridges, gateways, and windows—symbolizing European unity, along with a map of Europe and the euro symbol. The original banknote designs were created by Austrian artist Robert Kalina, and later series incorporated enhanced security features, including a portrait of the ancient goddess Europa. Euro banknotes are issued in denominations ranging from €5 to €200. (The €500 banknote was last issued in 2019.)
The eight euro coins range in denomination from one cent to two euros. Each coin features a common design on one side, while the obverse reflects imagery chosen by the issuing country.
