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Show E8 ____TheSalt Lake Tribune BUSINESS Sunday, December27, 1998 New European Currency Makes Appearance on New Year’s Day The New European Currency commission asthe well as the preferred choice of consumerorganizations,including organizationsfor theblind. It does not matter which country a euro coin originatesfrom. It will be of use in any of the EU countries that merge monetary policy. The euro is most concrete step yet to forge union ‘among peoples of Europe, helping create unified marketto better compete with the giant U.S. economy JEFFREYULBRICH a many of those who areattracted BRUSSELS, Belgium — The single Europeancurrency, which becomesa reality on New Year's Day, is a 19th century idea that 20th century politicians hopewill lead them to even greater prosperity in the 21st “On Jan. 1, Europe enters a new dimension. For the first time, a key part of nationalsovereigntyis being transferred to the nion.”” Joschka Fisher change for a numberof clear Positives. This is not thefirst time Euro- Frontside Windows and gateways are used as symbols of thespirit of openness and eggs into the same basket. in the EU economic andsocial ends in ex- peanshavetried to putall their Germanforeign minister Victor Hugo thought it was a terrific concept way back in 1855. to forge real union among the peoples of Europe. pockets of ordinary Europeans pinnedbythe entire capitalof Eu- “On Jan. 1, Europe enters a new dimension,” German Foreign Minister Joschka Fisher said re- cently. “For thefirst time, a key part ofnationalsovereigntyis being transferred to the Union.” The initial euro club will include 11 the EU’s 15 members — Austria, Belgium, Finland, France, Germany, Ireland, Ital Luxembourg, the Netherlands, Portugal and Spain. The nations’ 290 million residents will, over time, give up their currencies for the common money. Britain, Denmark and Sweden optedoutofthe euro, and Greece failed to meet the required economic criteria. Monetary union will, among other things, provide a huge unified market better able to trade efficiently with the United States, Asia and elsewhere and give EuTope more economic andpolitical clout. It will make thelives of American and other tourists infinitely easier, sparing them the constant exchange of German marks, French francs, Spanish pesetas and Italianlire. It will make continent-wide comparison shopping less difficult. It will simplify international business and banking, andit will protect enterprises and consumersagainstfluctuating exchangerates. All the excitement about the NewYear's launch of theeurois a however, because real euros won't be jingling in the for three moreyears. During that period, the eurowill exist only as a sort of virtual money alongside existing currencies. Some retailers, in an effort to educate the public, have begun showing prices in both local currencies and euros, but that's something of a gimmick since no one will be able to pay cash for retail purchasesin euros. communication of Europe andthe rest. of the world cies uniformly and make them in- will be set in euros. Workers at multinational companies will be able to receive paychecks denominated in euros, Banks will let cli- ents open euro accounts. And gov- ernments will allow residents to pay taxes in euros. Consumerswill be able to pay in euros bycredit or debit card, or by check, but only at those retail- ers that chooseto switch early Sharing a single currencyalso means sharing monetary sover- eignty, under the new European Central Bank, something that worries many Europeans, even amongthe people > There are 100 euro cents to 1 euro i WAGs a Ae :: —_| Thefront face of the 1, 2 and5 cent coins show Europeon a globe against a background oftransverse lines with stars attached Howit will happen abandoned in 1927, lamed and eventually killed by fluctuating gold andsilverprices, andfinally 2 Designsfor the backof individual EU member the coins wereleft to the countries. Jan. 4, 1999 Euro nationslock exchangerates ofnational money. Governments,businessesstart keeping accounts in euros; EU Central Bank starts running EU monetary policy. terchangeable. It was finally Theidea, however, lived on. | Jan. 1, 2002 Euro comesinto commoncirculation alongsidenationalcurrencies. After six months, nationalcurrencies disappear. ‘Source: The European Commission, AP Research World War I. AP. Euro to Simplify Monetary Exchangefor Millions The 1957 Treatyof Romecreating the predecessor of the European Union did not specifically mention monetary union, but it stressed the need to coordinate policy and abolish restrictions on the movement of capital. In the 1960s it became clear the Bretton Woods system of global fixed exchange rates was coming to an end. Asthe efforts to control THE ASSOCIATED PRESS PARIS — Laura Llado can’t wait for Europe’s new single currency. It will eliminate the hodgepodge of money and exchangerates that confound travelers on the continent. “Now, you have to change every time you go to another country,” said Llado, a businesswoman from Puerto Rico. With the euro, “youwill change once andcan go everywhere. You won’t haveto think fluctuating currencies within the European trade bloc turned to about it.” Actual euro coins and bills don’t go into circula- jelly, Pierre Werner of Luxembourglaid out a multistage process for economic and monetary tion for three moreyears. Buton Jan. 1, the curren- cies of the 11 participating countries will be fixed union, against the euro. It took 20 years, until July 1990, to begin implementing the first stage. In 1994, the European Monetary Institute was established, this year becoming the European Central Bank. | metaphorsfor impoverishment.” Year’s Eve when finance ministers from euro-bloc nations fix the rates. currencies. Stock and bond prices Reverse side Future bridges from particular age are represented, In 1865, France created the Latin Monetary Union with Bel- agreed to regulate their curren- Final designs were approved at the European Council meetingin Amsterdam in June 1997. The 1 and 2 euro coins show the European Union withoutborders. ee rope and driven bythe free labor rency won't be known until New { Coins The 10, 20 and 50 cent coins show the European Union asa collection of nations of 200 million people!” the Frenchpoet and novelist wrote in a letter to exiles from a failed coupd’etat. “This single currency would replace and absorb the absurd monetary variety we have today . . that amounts to so many causes of gium, Italy and Greece. They However, barring some last- cooperation “A continental currency under- And the exactvalueof the cur- minute market rumbling, the euro will be worth about 6.6 French franes, 14 Austrian schillings and 2 German marks. An American dollar will be worth about 80 eurocents. As a virtual money, the euro will trade on international markets against the dollar and other Notes Final designs were announcedin December 1996at the Dublin European Council, The designs are symbolic of Europe's architecturalheritage, but do not represent anyexisting monuments. by the benefits. In effect, the 11 euro governments have surrendered their capacity to use monetary policy for domestic political, The euro, as the European Union has decided to call the new money, is the most concrete — and monumental — stepyet taken | Thesingle European currency is scheduledfor launch Jan. 1, 1999, but actual money will not be in circulation until 2002. The winning series wasthefavorite of an opinion poll organizedby the European Union's executive This giant step is shaking up — andis likely to shake out — the money-changing business. Overnight, the need to hunt for the best exchange rate from one moneychangerto anotherwill vanish “There will be no morefluctuations between currencies,” said Nicolas Sireyjol, director of card ser- vices for American Express in France. With the rates fixed, the only way for exchange bureaus to make a profit on changing moneywill be bycharging fees or commissions, and those charges must be clearly indicated on the customer's receipt Three years from now, when the euro goes from being virtual currencyto real one, it will simplify the changing of moneyfor the 290 million residents in Austria, Belgium, Finland, France, Germany, Ire- land, Italy, Luxembourg, the Netherlands, Portugal and Spain. They no longerwill have to change money when they go to another euro country. Travelers coming from outside the currency zone will only have to change moneyonce. Therewill be no need to change moneyjust to get a coin for a baggagecart in Belgium whenyou arrive from Germany. Havea few extra euros from stayin Paris? You can use them at a vending machine in Berlin. iLChPelletse MZPony aes anjlime minutes to share D ASMUCCm LesPo CUE . BS YeVien ah ee Ys elles CALLA oes SB ea Ra eee ; CulpJorwardiny ee ein Mertcall!COATfae oe aenafs ae aodlabh s | 4 ba) ALL AGGESSORIES33% OFF THRU 1/10/99. Te, Am Oeae Li NEWGATE MALL UO oe Ve OSE ELC M EY TMT TBS OTe eet eRe eee AS NRO laren ann na OS ALO eae NUAL CONTRA a OE Een ED iimany! Ree On enn POOR CO! |
