2 Euro Proof

Economic and Monetary Union emerged gradually from European integration. One of its foundations was the Treaty of Maastricht (Vertrag von Maastricht), which established criteria for participation in a common currency. These included requirements concerning price stability, public finances, long-term interest rates and exchange-rate stability. At the same time, responsibility for monetary policy was reorganised. Since 1998, the European Central Bank (Europäische Zentralbank) has been responsible for the common monetary policy; together with the national central banks of the participating states, it forms the Eurosystem.

At the outset, eleven states participated in the monetary union: Belgium, Germany, Finland, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Spain. The conversion rates of their former currencies were fixed irrevocably. Initially, the euro was used primarily for cashless payments, accounting and the financial markets. Banknotes and coins did not enter circulation until the beginning of 2002. For a transitional period, old national cash currencies could still be used in parallel. Greece had already joined the monetary union in 2001.

With the common currency, currency exchange within the currency area was no longer necessary. Exchange-rate risks between the participating countries disappeared, while the national governments remained responsible for their budgetary policies and large parts of their economic policies. This resulted in a system of centralised monetary policy and predominantly nationally managed fiscal policy. Budgetary rules and economic policy coordination were intended to complement this structure.

By the anniversary year, the euro area had grown to 16 states through the accession of Slovenia, Cyprus and Malta, and most recently Slovakia. The anniversary therefore provided an opportunity to commemorate not only the introduction of a currency, but also a common institutional project. A single coin theme was suitable because euro circulation coins have common obverse sides but normally different national sides. The selection of the design through a public online vote was also intended to involve citizens in the creation of the cross-border issue.