Euro

For all major nations participating in the European Union (EU), except England and Sweden, the common currency since 1992 has been the euro, or the European Currency Unit (ECU). It is now the official currency of 12 EU member countries, in addition to a number of other states wishing to share in the benefits of a unified European economic market.

The political ramifications of the euro go far beyond just its use as money and represent the most major economic reform since the days of the Roman Empire. Its use is meant to facilitate free trade and raise the levels of the economies of the member states, just as the North American Free Trade Agreement (NAFTA) has sought to do across the ocean.

Specifics

The currency is seen as part of a greater unification of what once was known as the Common Market and some feel, particularly opponents in England, that the use of a single currency is just a step toward political unification of Western Europe. The euro is administered through the European System of Central Banks (ESCB) with the European Central Bank (ECB), headquartered in Frankfurt, Germany, having the sole responsibility for setting monetary policy.

Although each of the member states mint and produce the common currency denominations, each country's version is individualized with one side of the euro coin having a "national side" designed by the issuing country. Euros are produced in five different "cent" denominations, and in one-euro and two-euro coin versions. Paper euros are printed in five denominations, ranging from one to 500.

World Placement

Aside from the anticipated effect of promoting free trade and increased value for the common currency, it also has become a rival of the United States dollar. This is particularly an issue since the dollar is the international currency against which all others are valued.

The EU consumes more imported oil than does the United States and there has been some thought given to changing the oil pricing standard for petroleum produced by the Organization of the Petroleum Exporting Countries (OPEC) in euros instead of dollars. This could have the effect of the euro replacing the dollar as the international standard.