France

The single currency

On 1 January 2002, the euro will become the single currency for 300 million Europeans living in 12 European Union countries (euro area). The introduction of the euro is the outcome of a long process of reflection, preparation of national economies and then transition to the euro.

1969: at the Hague Summit, the six member States of the European Economic Community (EEC) set the objective of an Economic and Monetary Union (Barre Plan).

1971: lthe Werner Plan makes the proposal for the convergence of national economies with the aim of giving the EEC a single currency. The instability of European currencies puts this project in jeopardy.

1972: control of the fluctuation of European currencies is established with the creation of the European currency snake, then in 1979 with the European Monetary System (EMS).

1986: control of the fluctuation of European currencies is established with the creation of the European currency snake, then in 1979 with the European Monetary System (EMS).

1990: first stage of EMU with the free movement of capital.

1992: The Treaty of Maastricht defines convergence criteria among the economies of participating countries, the preliminary stage of the single currency.

2 May 1998: the European Council agrees the list of participating countries: Austria, Belgium, Germany, Finland, France, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain (arrival of Greece in 2001).

1 June 1998 : creation of the European Central Bank (ECB) responsible for European monetary policy.

1 January 1999 : the euro becomes the single currency. The exchange rate is irrevocably fixed between the euro and the national currencies (1 euro = 6.55957 FRF). Transactions on capital markets are conducted in euros.

1 January 2002 : euro coins and banknotes become legal tender in the 12 participating countries.

17 February 2002 : disappearance of the French franc.

Consumers, companies and public services will have to make considerable efforts to adapt to the change in currency.

A multitude of everyday aspects will require adjustments: price labelling, bank account conversions, creation of billions of new coins and banknotes, withdrawal of French francs, etc.

www.finances.gouv.fr

Why is the single currency necessary?
The European economy constitutes a huge single market. Member States of the European Union conduct the majority of their trade within Europe.

The single currency will get rid of exchange-related problems and will contribute to European construction by equipping Europe with an international currency. By facilitating exchanges and investments, States in the euro area also seek to strengthen employment in Europe.

Euro (€). From 1 January 2002 around 13 billion banknotes and 56 billion coins will be put into circulation throughout the euro area.

Coins. In order to symbolise the union and diversity of Europe, coins will have a common, European side for all 12 countries of the euro area (recognisable by the 12 symbolic stars) and a national side.

In France 3 motifs will decorate the national side of coins: Marianne (figure of the Republic and of Liberty), a tree (a symbol of life) and la Semeuse - the French sower (allegory of fertility). Whatever the national side, the coins may be used throughout the euro area.

Banknotes. Three elements will be printed on the banknotes: gateways and windows on the reverse side and bridges on the front. These images represent the seven architectural styles that have marked European culture: Classical, Romanesque, Gothic, Renaissance, Baroque and Rococo, iron and glass architecture and finally modern architecture.

Official conversion rate 1 € = FRF 6.55957