On December 31, 1998 eleven participating countries joined the Economic and Monetary Union (EMU). The 15-nation European Parliament agreed that Germany, France, Italy, Spain, the Netherlands, Belgium, Austria, Portugal, Finland, Ireland and Luxembourg will use the new currency called the euro. 

ECU replaced by the Euro

The irrevocable conversion rates of the participating currencies have been fixed through a unanimous vote of the European Council. The external value of the euro corresponds to the external value of the European Currency Unit (1 ECU = 1 euro). The Euro is not just the same since the ECU also contains the currencies of the non-participating European countries. The ECU no longer exists. It has been replaced by the Euro.

The rates shown in the table below are the official conversion rates announced on December 31, 1998. In carrying out the conversion, only the official conversion rate will be used, but not its reciprocal value (to change local currency into euro, divide by the conversion rate).

Interest-Rate Convergence

With the creation of the single European currency, there will be a need for a new interbank reference index for the euro zone countries beside the euro-Libor. Euribor (European interbank offering rate) will replace the national monetary indexes for the countries of the euro zone, beginning in 1999.

To qualify for a European Member State (EMS), the durability of convergence must be reflected in the long-term interest rate levels. A Member State must have had an average nominal long-term interest rate that does not exceed by more than 2 percentage points that of, at most, the three best performing Member States in terms of price stability.

Some countries do not intend to participate immediately. These countries are United Kingdom, Denmark, and Sweden. The only country that does not meet the two most important criteria, price stability and interest-rate convergence, is Greece, and thus it will almost certainly not qualify for membership. Greece joined later becoming the twelft country that use the euro. The criterion on successful membership in the exchange rate mechanism (ERM) of the EMS likewise does not pose a serious threat for membership. Currently, only Britain, Greece, and Sweden do not participate in the ERM.

The European Central Bank (ECB), is now officially responsible for regulating monetary policy for participating economies. The terms of reference are to maintain price stability, which has been further defined as a year on year increase in the harmonized index of consumer prices for the euro area of below 2%. Note that there is no requirement to consider employment, despite recent political positioning.

Euro Stamps Mailing List

A Stamps Info mailing list has been generated to serve as an open discussion forum about euro stamps which depict stamps in dual currencies face value issued by the eleven countries until 2002. This is a global list, every member from any part of the world can post messages by joining the list and will receive messages posted by other members.