Best Exchange Rates: Timeline of the European Union single foreign currency

December 6th, 2011

Best Exchange Rates UK, takes a look at the timeline of the European Union single foreign currency:

1957: The Treaty of Rome stated that a common European market would increase economic prosperity and help promote closer relationships throughout countries within the European Union.

1969: A European summit is held at The Hague and makes a single foreign currency an official objective of the EU.

1970: A report named the Werner report envisaged a single foreign currency across the EU to be achievable over 10 years. The oil crisis and economic differences within the EU means that only Germany, Denmark and the Benelux take on the EU as their main foreign currency.

1979: The European Monetary System (EMS) is created with the intention to link all countries’ currencies to prevent currency fluctuations within the EU. Many elements were decided under the arrangement including the exchange rate mechanism (ERM) defining rates in relation to the European Currency Unit (ECU). The ECU was a basket of the currencies, which paved the way for the euro.

1986: The Single European Act is passed which modifies the Treaty of Rome. It sets up a framework for the Single European Market. It set up a customs union, where people could trade freely with a common external tariff on goods coming into the EU. Making sure the euro foreign currency was common throughout the EU.

1991: Plans for a single foreign currency by the year 2000 are agreed under the Treaty of the European Union. Strict rules are made for those countries wanting to adopt the euro, including targets for inflation, interest rates and budget deficits. The UK explicitly states its reasons for not joining the EU.

1995: The “euro” is chosen to be the new foreign currency.

1997: The UK Chancellor Gordon Brown announces five tests to be assessed before the UK adopts the new foreign currency.

1999: 11 member states have adopted the euro. The Euro is now fully launched as a unique foreign currency electronically to be used by banks, foreign currency exchange and stock markets. Foreign currency exchange rates are set for participating countries.

2002: Euro coins and notes overtake national currencies and become the legal tender within the EU.

2003: The British position on the euro – decide that the time is not right.

2011: The UK still haven’t entered the Euro and it seems as if it won’t be adopting the foreign currency for the foreseeable future. People travelling from the UK to the Eurozone try and get the best exchange rate pound to euro in the ever changing foreign exchange market.

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