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The roots of the euro currency originated in the European Monetary System in 1979 which involved creation of the European Currency Unit. Per history of Euro, originally twelve (12) of the 15 EU countries (Germany, France, Austria, Spain, Portugal, Italy, Belgium, Luxembourg, the Netherlands, Finland, Greece and Ireland) were members of the so-called Eurozone. Euro history tells us that these states were joined later by Slovenia (2007), Cyprus (2008), Malta (2008), and Slovakia (2009).

The history of Euro is that on January 1, 2002 the Euro replaces the old national currencies. We can see in the history of Euro chart above that European currencies have always fluctuated against the dollar, even as debates have raged about the Euro.

The Euro became the single currency of 12 European states in 2002. Other states joined the currency later.
Benefits in the history of Euro
The Euro was implemented with the goal of creating a more stable European economy. Looking at the history of euro, we can see that the Euro improved economic growth across Europe and offered more integration among financial markets. The euro history also shows that the Euro currency strengthened European presence in the global economy through being a reserve currency. The history of euro also proves that the Euro helped ease exchange rate volatility among different European nations.
Euro history problems
The history of euro has brought also a number of problems. While the euro improved stability of the region, all nations have to have relatively similar interest rate to avoid interest rate arbitrage. This has created problems for some economies in the euro history, such as Germany. The Euro has taken away the interest rate as a tool of the fiscal policy. If the local economy slows, the local government cannot lower interest rates to stimulate growth.

Tags:  roots euro currency eurozone replaces economic reserve nations economies policy