Slovakia · 10 years WWU

Economic and Monetary Union emerged gradually from European cooperation in monetary policy. Following the end of the Bretton Woods system of fixed exchange rates, the states of the European Community sought to limit major exchange-rate fluctuations between their currencies. This initially led to the European exchange rate arrangement and, in 1979, to the European Monetary System. Its unit of account, the ECU, was a currency basket composed of several European currencies, but it was not general-purpose cash.

The political and legal framework for the monetary union was established by the Maastricht Treaty. The transition took place in three stages: first, capital movements and economic policy cooperation were strengthened; subsequently, the national central banks were more closely coordinated; and finally, exchange rates and monetary policy were unified. To participate, states had to meet convergence criteria. These concerned price stability, public debt and the budget deficit, long-term interest rates, and exchange-rate stability.

At the beginning, eleven states took part in the final stage. Their exchange rates were irrevocably fixed, and responsibility for the common monetary policy was transferred to the Eurosystem, consisting of the European Central Bank and the national central banks. Initially, the new currency was used primarily for cashless payments, accounting, and the financial markets. Banknotes and coins did not enter circulation until 2002; until then, the existing currencies remained in use as national subdivisions. Greece joined the monetary union in 2001.

The common currency was intended to eliminate exchange-rate risks and conversion costs in the European internal market. At the same time, it permanently linked the participating states through a common monetary policy, while financial and fiscal policy remained largely under national responsibility.

The design for the coin issue was selected in a public online vote. The coordinated issue made visible that the euro is, on the one hand, minted and issued by the individual states, while on the other hand being based on common rules and institutions. The different language versions on the coins reflect this connection between national responsibility and a common monetary order.