Yahoo! Finance - Euro Centre UK

The UK Euro Centre

Euro Centre Home

Resources

· Yahoo! Finance

· Exchange Rates

· Calendar

· FAQ

· Glossary

Yahoo! Categories

· UK Treasury

· European Union: Political Issues

· Regions: Europe

· European News and Media

Frequently Asked Questions

What is Economic and Monetary Union?
On January 1, 1999, the 11 European Union countries who have chosen to do so will form an economic and monetary union (EMU) and start using the euro. The 11 countries will lock their exchange rates to the euro. On January 21, 2002, euro notes and coins will start becoming available. Until then the old national currency notes and coins will continue to circulate, though their value will be fixed to the euro.
The 11 countries will also share a single interest rate, set by the European Central Bank (ECB), and a single foreign exchange rate policy. From this date, the ECB will be responsible for the monetary policy of these 'euro zone' countries.
Which countries are joining the euro zone on January 1, 1999?
Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain.
What is the new money called?
The new currency is called the euro. A euro will be made up of 100 cents.
When and where can I use the euro?
If you have a euro bank account you may be able to use the euro in cheque and credit card transactions from January 1, 1999. But remember: euro banknotes and coins will not start circulating until January 2002.
What happens on January 1, 2002?
From January 1, 2002, euro notes and coins will be legal tender anywhere in the participating countries, regardless of the country of origin. They will circulate alongside national notes and coins. Old national notes and coins will gradually be removed from circulation; by July 2002 only euros will be in circulation. The period from January-July is sometimes referred to as the "dual circulation" period.
Can I have a euro bank account?
Some British banks may decide to offer euro bank accounts. They may also offer cheque and credit card services in euro, which you would be able to use from January 1, 1999.
Can I pay my taxes in euros?
This is something that the government and Inland Revenue are currently working on.
Can I use the euro in the UK?
While the UK is outside EMU the euro will be like any other foreign currency. Businesses can decide to accept the euro if they wish.

Business headlines