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 Euro is the official currency of the European Union.

 Eleven member states have adopted it collectively known as Eurozone.(Austria, Belgium,

Cyprus, Finland, France, Germany, Greece, Ireland, Italy, etc.)

 Taking official estimates of GDP, the Eurozone is the ¦
  


 The euro was introduced to world financial markets as an currency in 1999 and launched coin
and Banknote on 1st, January 2002.

 All nations that have joined the EU since the 1993 implementation of the Maastricht Treaty

 The  (¼) is the currency sign used for the euro the official currency of the European
Union(EU).

 The design was presented to the public by the European Commission on 12th December ,
1996.

 The international three-letter code (according to ISO standard ISO 4217) for the euro is 
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Also known as Treaty on European union

Signed
on £
¦between members of European
community.

Ñed to the creation of EURO.

   
  

 EMU is the   !! 

" !   
!  

 
 Eleven countries have been selected as the members of EMU.
As part of the EMU, these eleven countries now make up the
world's second-largest economy, after the United States
 a

 "
  
requirements in time to join the EMU in the first round.
Sweden failed to satisfy two of the conditions:
 laws governing Sweden's central bank were not compatible
with the Maastricht Treaty and the currency exchange rates in
Sweden were not sufficiently stable for the previous two
years. Greece failed to meet all of the requirements
   
 


#

 The European Monetary Institute (EMI) was " "

 !  $  $%

 It encouraged cooperation between the national banks of the

member states of the EU

 Further budget constraints are required in countries ( Italy and

Belgium) meet the requirements of the pact.
 & a  


 : Inflation rate should not exceed 1.5% that of three

best performing member state.
    
": the ratio of the annual government
deficit to gross domestic product (GDP) must not exceed 3%
 a  
: the ratio of gross government debt to GDP
must not exceed 60% at the end of the preceding financial year.
 Ñ ' . In practice, the nominal long-term
interest rate must not exceed by more than 2 percentage points that
of, at most, the three best-performing Member States
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ü Done largely in local currency up to final changeover
ü Corporate banking may well start using earlier

· 
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ü Plan of large companies to adopt euro as company currency
ü Expected their customers and suppliers to use Euros in transactions
ü Internationally oriented medium sized companies will probably also turn
quickly to new currency in many of their functions
ü Smaller domestically oriented companies, self employed and
households will keep more or less to national currency until euro coins
or notes and coins are introduced
  a  !
üGerman public sector didn¶t planned to switch to euro until end of
2001
üPossible to make non cash payments in Euro ex. tax

üCompanies were particularly concerned to pay income and

corporation tax returns in DEM until 2001

üPreferred to use Euro right earlier

  " ! 

a 
üIn order to minimize the burden on the retail sector

üBanks and retailers continue to give out DEM coin they receive as
can be used for any vending machine

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üBased on article 235 of the EC treaty took effect on

June 20th ,1997 applied to all EU countries

üThe existing contracts will remain in force with all rights and
obligations provided no other agreement has been made after the
advent of new currency

üNeither investors nor debtors holding long term contracts will

enjoy advantage or suffer disadvantage through changeover of
currency



üBased on article 109 of the treaty-on the introduction of the euro

was passed during the May 1998

üEstablished principle that who wants to use the euro can but no
one can be forced to

üDetermines the legal status of euro vs. the national currencies

üEuro EG opened company,stock exchange,accounting&currency

law to the Euro

üPaved way for changeover on the financial markets & exchanges

that lead companies to adjust their accounts,equity capital
structures
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