Introduction of the euro – EMU, third stage

On 1 January 1999, 11 EU member states acquired a single currency, the euro. This was achieved by locking the exchange rates for the legacy currencies of the participating EU member states (euro area member states) vis-à-vis the euro. For the first three years, the euro existed only as electronic money, while the legacy currencies still existed as banknotes and coins. However, the fixed parities of the 11 legacy currencies vis-à-vis the euro meant that they were no longer independent currencies, and consequently they were no longer traded in the currency markets.

Three years after the introduction of the euro, i.e. on 1 January 2002, euro banknotes and coins were put into circulation. The three years up to 1 January 2002 were necessary in order that all parts of society, e.g. retailers, the financial sector, companies and the public sector, could prepare for the full transition to euro. This period was also used to manufacture euro banknotes and coins.