Der Euro Kommt

Say auf Wiedersehen to schillings and marks

 What do you know about Europe's new currency? Can you pass our German Euro-Quiz?

You are about to learn more about the vocabulary and history of der Euro (OY-RO). You may be surprised to learn about the many ways the euro will change your next European experience.

As a matter of fact, the euro has been around for a while already. After much wrangling over the currency's new name at a meeting of the Council of Europe (Europäischer Rat) in Madrid in December 1995, the old ECU unit (created in 1979) was dubbed the “euro” (der Euro in German) and became an official world currency in January 1999. The term “euro” won out over other suggestions because it was the only proposed name that could be pronounced easily in all European languages (the former ECU's German pronunciation sounded like “a cow”: eh Kuh) and the new term was free of any lexical connection to existing national currencies.

At the dawn of 1999, on its first official day of trading in Sydney, Australia (the international date line and all that), the euro debuted at 1.1747 US dollars, a positive sign to those who saw the euro as serious competition for the dominant world currency, the dollar. But the euro exchange rate would later plunge below a dollar, reaching a record low of $0.827 in mid-2001. Lately it has has been hovering around 90 cents. Supporters claim the euro will strengthen once it finally gets into the hands of consumers as spendable cash.

Despite the fact that it was not yet in circulation, the euro became legal coin of the realm in the then eleven “Euroland” countries following its 1999 introduction. At that time the German mark, the Austrian schilling and other currencies were each set at a fixed, irrevocable rate against the euro. The value of today's Deutsche Mark or Österreichischer Schilling depends on its relationship to the euro. EU bank accounts and stock markets already use the euro for cashless transactions, as so-called Buchgeld (money on account). Over the three-year period of 1999 through 2001, the citizens of euro countries were supposed to get used to the idea of the new moneys' arrival, while government and business prepared to put it into circulation. Technically, the mark and other European currencies were just tandem “partners” to the euro, the true legal tender in all of the euro zone nations.

But on the first day of 2002, the euro will go from Buchgeld to Bargeld (cash). Despite polls indicating that Germans and Austrians are reluctant to give up their traditional currencies, euro notes and coins will go into circulation in a dozen countries, including Germany and Austria, in January. Discover some euro vocabulary, who's in, who's out, what the timeline is, and more about the Austrian designer of the euro banknotes – in our Euro-Chronik.

1990
June 19: France, Germany and the Benelux countries sign the Schengen Agreement, abolishing border controls between their countries by 1995 and establishing closer cooperation in the areas of security and asylum. By 1992 Italy, Spain, Portugal and Greece add themselves to the agreement.

1992
Feb. 7: The 12 EC countries sign the Maastricht Treaty creating the new European Union (EU). The EU replaces the EC with a stronger political and economic union that goes into effect on Nov. 1, 1993.

1995
Austria, Finland and Sweden join the EU, bringing the total of member countries to 15. The Schengen Agreement goes into effect on March 26, eliminating border controls for most EU countries and creating a new open market within the EU. December: The euro gets its name at an EU summit meeting in Madrid.

1998
April: All border controls between Austria, Germany and Italy are abolished. May 3: Eleven EU countries agree on Jan. 1, 1999 as the date for European Monetary Union (EMU) and the birth of the euro. June 2: The European Central Bank (ECB) opens for business in Frankfurt am Main.

1999
Jan. 1: The euro and the EMU (European Monetary Union) are born. The euro becomes the legal currency in eleven EU countries (along with national currencies) but will not go into cash circulation until Jan 1, 2002.

2000
The euro celebrates its first birthday on Jan. 1. It is still a cashless currency used for euro zone bank accounts and stock market transactions. May 3: The EU Commission proposes that Greece become the 12th member nation in the EMU.

2001
The euro celebrates its second birthday on Jan. 1. Sept. 1: Advance distribution of euro notes and coins to banks and businesses begins. Oct. 1: Prices must now be displayed in both euros and the national currency. Dec. 15: Advanced distribution of euro notes and coins to consumers begins. As of Monday December 17 financial institutions can distribute euro coin bags or “Starter Kits” to the general population.

2002
Jan. 1: Euro banknotes and coins go into circulation in the 12-nation euro zone. (See euro country list above.) The euro can be used along with the traditional currency until the end of February, but consumers will get change back in euros only. The national currency is no longer valid for bank accounts or cashless transactions. Travelers in the euro zone no longer have to exchange money as they move from one country to another. Prices are displayed in euros only. Feb. 28: The former national currencies are no longer legal tender. The euro is the only money that can be used legally throughout the euro zone. March 1: Invalid national money - both bills and coins - must now be exchanged for euros through banks only. Businesses accept payment in euros only, but banks will exchange old marks, lire, schillings, etc. for euros indefinitely.

Stamps/Briefmarken: January 1 will not see just the appearance of new coins and bills, but also new euro stamps! Existing postage stamps in every euro country will remain valid until June 30, 2002. Although they are marked in cents or euros, German stamps will continue to display the country of origin: “Deutschland.” Questions about German stamps? Visit the Deutsche Post AG Web site. (Also in English). - Deutsche Post - Philatelie

The euro and other money-related vocabulary

  Noun genders are indicated by: r (der, masc.), e (die, fem.), s (das, neu.)
  Abbreviations: adj. (adjective), adv. (adverb), n. (noun), pl. (plural), v. (verb)

  Also see related links below and these articles by your Guide:
  Der Euro kommt and Euro-Chronik (Timeline and Euro Facts).

  More Glossaries from your Guide

Euro Quiz