The European Common Currency

Having been introduced in 1999, the European Common Currency plays the most significant role in global circulation of money and capital nowadays. The European Common Currency, the euro, is the second largest reserve currency as well as the second most traded currency in the world after the United States dollar.

The topicality of the paper presented is determined by prevalence of the euro in modern global economy.

The aim of the paper is to disclose the origin of the currency and peculiarities of its design.
Before 1999 the Common Market member states had the common currency called ECU (European Currency Unit). In 1999 the Common Market introduced a new currency - Euro - used temporarily only in bank operations. Euro replaced the former European Currency Unit (ECU) at a ratio of 1:1 (or US$1.1743). Since 1 January 2002 the euro has been circulating in physical form, as banknotes and coins.

According to European Commission, "Inspiration for the € symbol itself came from the Greek epsilon (£) - a reference to the cradle of European civilization - and the first letter of the word Europe, crossed by two parallel lines to 'certify' the stability of the euro."

The banknotes have common designs on both sides for each Eurozone's country. Notes are issued in €500, €200, €100, €50, €20, €10, €5. Each banknote has its own color and is dedicated to an artistic period of European architecture.

The coins are issued in €2, €1, 50c, 20c, 10c, 5c, 2c, and 1c denominations. All circulating coins have a common side (or reverse) showing the denomination or value, and a map, 12 stars (the initial number of countries in the Eurozone) and 6 parallel lines - a symbol of stability in the background. The coins also have a national side showing an image specifically chosen by the country that issued the coin. For example, €1 Austrian coin contains portrait of Wolfgang Mozart, the famous Austrian composer, representing Austria as a great musical power.

Euro coins from any member state may be freely used in any nation that has adopted the euro.

Thus, the euro being the official common currency of all countries, included in the Eurozone, each of them has the right to determine the 'national side' of coins, in this way showing the most important signs and symbols of its history and culture.

М. А. Гусева