The Euro

January 1st 2002 - twenty years ago. Enthusiasm for the new currency is giving the dollar a run for the money. On the other side, major newspaper statements declared: “Der Euro wird uns in die Katastrophe führen” – “The Euro will lead to catastrophe.” 

Traveling or cruising in the Caribbean with U.S. Dollars is no problem as our currency is readily accepted throughout. However, beyond the Caribbean one normally does need currency of the country visited. Regretfully, the days the dollar was a much-desired currency worldwide are no longer.

In years past, servers at restaurants and cafes in Europe carried large black purses with   multiple sections filled with five of the major European currencies. In The Netherlands, for example, aside from paying in Dutch Guilders it was quite acceptable to offer Belgian or French Francs, German Marks, and English Pounds. Even a mix was no problem. Servers pull out a calculator and punch away with the multiple exchange rates. Some servers even did it in their head.

If you remember an experience like that, you travelled in Europe more than twenty years ago when each country proudly showed off their own currency with exchange rates sometimes changing twice a day. It did have a certain charm to it and brought a nice small profit on exchange rates, complimenting the meager salaries of service personnel. The myriad of bills in various states of neglect, round, square coins, even a few with holes were the norm. You could have thousands of Italian Lire and pay 1500 for an espresso coffee, or deal with old French Francs, or new ones at completely different values.

That all changed exactly twenty years ago on January 1, 2002. On that day twelve European countries changed their own beloved currencies to the Euro at a set exchange rate between old and new until February 28 of that year; an almost inconceivable feat that European governments started to speculate about in the 60’s. Obviously, it was a way to try and compete with the U.S. Dollar and make cross border trade in Europe as easy as dealing between states in the United States. But that was easier said than done as economic and political differences between the Euro Zone Countries were vastly greater than between our States.

The European Monetary System was confirmed by the Central Banks of the member countries with a new treaty, based on the “Delors Report,” named after the former European Union President, Frenchman Jacques Delors. 

On January 1, 1999, all electronic monetary transactions changed to the Euro as the first step into this colossal project. On January 1, 2002, I was on a ski vacation in Austria with my wife and two sons. After midnight, the Austrian Shillings were no longer considered as legal tender and were replaced by the Euro. Germany’s well-known magazine, Der Spiegel, and Austria’s counterpart, Echo, devoted a whole issue to the Euro. Shillings could be changed to Euros at a fixed exchange rate of 13,7603 until February 28. Similar fixed rates were available for all European currencies until that date. Finland, in northern Europe, was the exception, as they kept a fixed rate valid through 2012 for their original currency, the Markka. And earlier in 1992 the United Kingdom opted out of the Euro currency plans but did become a member of the European System of Central Banks.

Euro banknotes are the same in each country with the theme of “ages & styles of Europe, based on architectural designs and not on existing structures.” The notes are printed by 12 designated and authorized print shops scattered throughout Europe. However, each member state has the freedom to print their own design on one side of the new Euro coins. The reverse has the same design in every member country with the value on it and is surrounded by a universal design by Belgian artist, Luc Luyex.

Therefore, you might find Greek coins in The Netherlands and Dutch coins in Greece. All are of equal value and can all be used in every member state. Today the twelve member countries of the European Union originally accepting the Euro have grown to nineteen-out-of-twenty-seven member countries making the Euro legal tender for approximately 340 million citizens. Between 2013 and 2019 new, more secure banknotes were introduced with the “Europa Series” and the largest denomination of Euro 500, (about $580) was discontinued in an attempt to fight organized crime. Interestingly enough we know how coins can be saved in boxes, pots and then completely forgotten. Sorry, but they have no value anymore. For several years after, coins were no longer accepted as legal tender. Churches could still sell them to Central Banks, but that outlet has dried up as well. Postage stamps were also changed under the Euro banner, but the member countries had their own choices for design.

On that January 1 of 2002, Austrian friends of ours gave each of the children small, netted baggies with one each of the shiny new Euro coin denominations. It suddenly became much easier to compare pricing from one country to the next. However, the confusion of dealing with completely different valued currency lasted for years. Today an older Belgian friend of mine still counts his money in Belgian Francs instead of Euros. Although the United Kingdom retained its Pound Sterling and Switzerland kept their Swiss Franc, both countries accept the Euro as readily as their own currency.

The projected catastrophe naysayers predicted did not happen. Instead, Europeans have streamlined their Intereuropean business and competition with the dollar. Obviously, there were hiccups and concern about inflation, but the seemingly impossible financial project dating back to the 60s eventually became one of the greatest feats in modern economic history.

Compared to the venerable and distinctly serious looking U.S. Dollar the Euro was a sensation when introduced to the world. The banknotes look like play money. Design and colors were impressive and wildly imaginative.

I, for one, miss the nostalgia of dealing with all the different banknotes from the past and the history behind all those currencies and notes, many with handwriting on them. If you want to give into those nostalgic feelings, you have to get your hands on English Pounds. It is the oldest currency in the world still in circulation after 1,200 years! 

Ewout Rijk de Vries and his wife, Jill brought America Travel Arrangements to Marco Island almost 40 years ago. They specialize on high end small adventure tours and small safari groups for clientele all over the world, but also are experts on high end cruises with the help of longtime assistant and friend, Michelle Wegman. In combination with his writing and photography, Ewout has visited over 90 countries.