Euro Reaches 27th Anniversary on New Year's Day
The currency launched operationally on Jan. 1, 1999, entering everyday circulation following a three-year transitional phase.
Physical euro banknotes and coins debuted Jan. 1, 2002, supplanting predecessor currencies throughout participating nations.
Presently, the euro functions as official currency in Austria, Belgium, Bulgaria, Croatia, Estonia, Finland, France, Germany, Greece, the Greek Administration, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
Bulgaria Embraces Euro on New Year's Day
The European Commission, European Central Bank (ECB), and EU finance ministers determined Bulgaria had satisfied requirements to adopt the euro at the new year's commencement.
Bulgaria, an EU member since 2007, entered the eurozone on Jan. 1, formally adopting the currency on New Year's Day.
EU nations utilizing the euro as primary currency constitute the eurozone. The Eurosystem, comprising the ECB and member state central banks, manages eurozone monetary policy.
The ECB's mandate centers on maintaining price stability throughout the eurozone. The bank targets 2% medium-term inflation.
The ECB oversees banking institutions, monitors financial systems, manufactures euro banknotes, and secures card-based and online euro payment transactions while investigating crypto assets.
Euro Serves Over 350M Users
More than 350 million Europeans utilize the euro. The currency features varied banknotes in distinct colors and dimensions, including seven denominations: 5, 10, 20, 50, 100, 200, and 500 euro bills, alongside coins valued at 1, 2, 5, 10, 20, and 50 euro cents, plus 1- and 2-euro coins in active circulation.
Production of the highest-value 500-euro banknotes ceased in 2019 to counter terrorist financing and money laundering operations.
The 500-euro note has been withdrawn from everyday transactions, with these banknotes exclusively depositable into banking accounts or exchangeable at financial institutions.
All EU member states excluding Denmark must transition to the euro upon satisfying specific benchmarks.
Denmark rejected euro adoption via referendum and continues resisting conversion from its domestic currency despite fulfilling all economic and additional requirements.
Additional nations yet to adopt the euro include Hungary, Poland, Romania, and Sweden.
EU member states retaining national currencies operate monetary systems independently, preserving autonomy over economic conditions and monetary policy.
Ups and Downs
Upon 1999 launch, €1 equaled $1.17, though the currency rapidly depreciated against the dollar post-inception, plummeting to $0.83 by October 2000.
Between 2002–2008, the euro strengthened versus the US dollar, hitting a record $1.6 peak in 2008 before gradually declining thereafter.
The euro/US dollar exchange rate registered 1.03 at 2025's opening, hovering near 1.18 in late December.
Throughout 2025, the euro appreciated approximately 15% against the US dollar.
The currency enjoys widespread international market usage as the second-most-utilized reserve currency behind the US dollar.
The US dollar comprises 58% of global international reserves, while the euro represents 20%.
High Public Debt
Eurozone nations confront excessively elevated debt burdens.
Total eurozone public debt reached €13.6 trillion ($15.9 trillion), with debt increasing €578 billion ($678.4 billion) over the preceding year.
The eurozone's public debt-to-gross domestic product (GDP) ratio climbed to 88.2% this year, rising from 87.7% previously.
Greece maintains the highest public debt-to-GDP ratio among EU member states at 151.2%, trailed by Italy at 138.3%, France at 115.8%, Belgium at 106.2%, Spain at 103.4%, Portugal at 96.8%, and Finland at 88.4%.
Under standard conditions, EU member state public debt should not surpass 60% of GDP.
EU countries have failed implementing debt reduction measures and austerity policies for numerous years, causing this substantial public debt to burden the regional economy.
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