Euro << YUR oh >> is the basic monetary unit of 20 member countries of the European Union (EU). These countries are Austria, Belgium, Croatia, the Republic of Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. The euro is also used in the non-EU countries of Andorra, Kosovo, Monaco, Montenegro, San Marino, and Vatican City. The euro is divided into 100 cents.
The original euro countries were Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. They adopted the currency on Jan. 1, 1999, as part of an effort to create a more efficient, unified European economy. When they adopted the euro, companies, banks, and stock exchanges in those nations began to carry out many of their noncash transactions in euros. Euro notes and coins replaced the traditional currencies of these nations in 2002. The old currencies included the French franc, the German mark, and the Italian lira. Until the old currencies were phased out, the value of each was firmly tied to that of the euro.
The European Union countries that have not adopted the euro have the option of adopting the currency at a later date, as long as they meet certain economic requirements. However, several countries—including Denmark and Sweden—have chosen not to adopt the currency because of fears that the use of the euro would reduce their independence.
