Euro Currency Launched
The euro was launched on 1 January 1999 as an accounting currency, with euro notes and coins entering circulation on 1 January 2002, replacing the French franc, German mark, Italian lira, Spanish peseta, and eight other national currencies across twelve countries. The institutional logic was political as much as economic: a common currency would lock in European integration irreversibly, create shared political interests across member states, and allow Europe to develop an international reserve currency that could rival the dollar. The structural flaw — identified by economists before launch — was the 'optimum currency area' problem: a single monetary policy cannot optimise for economies with different business cycles, productivity levels, and fiscal positions.
- Year: 1999 CE
- Category: Political
