RP272 Money Talks— in Many Languages

 RP272 Money Talks— in Many Languages!

It was a long and difficult birth. Proponents had been fighting for it since the 1960s, slowly overcoming strong resistance. Despite arguments and protests, the euro was finally put into circulation on January 1, 2002. An entire continent— in theory, at least— could now use the same eight coins and seven notes.

The euro is the official currency of the eurozone, which had 12 member states when euros were first issued and now has 19. Previously, these countries used their own national currencies. The euro, however, gave them a common currency to trade with. In most of the eurozone, it has replaced old currencies both within individual countries and across borders.

While each country in the eurozone prints its own euros with its own design on one side, all euros have exactly the same value. This equality is the point of the currency. The euro is managed by the European Central Bank, which must try to please all members of the eurozone. That's often hard to do. Having a single currency means individual nations cannot manipulate its value to solve their debt problems. It also means that economic difficulties in any eurozone country affect the entire community.

Greece is a prime example. Extreme debt has forced the country to borrow huge sums from its eurozone partners in recent years. In return, the eurozone has demanded that Greece find ways to save money. Tax increases, smaller pensions for retired workers, and cuts in social spending have caused outrage and even riots in Greece.

Like political union, economic union has caused Europe some problems. Smaller states feel discriminate d against by larger ones. Wealthy states resent having to give money to poor ones. Prices rose in some countries with the introduction of the euro, but wages didn't.

Still, the euro remains one of the world's strongest and most traded currencies. The global financial crisis has certainly not avoided Europe. But for now, the single currency first imagined over 50 years ago is doing better than most.