EUROPEAN UNION 1 January 2009 Europe marks 10th anniversary of introduction of European Monetary Union and euro 

European Monetary Union was finalized on 1 Jan 1999, with the European single currency, the euro, becoming the currency of 11 European Union countries. After a difficult birth marked by modest growth and growing pains, it will end the decade with 16 countries in the club. It is second only to the United States dollar in importance and influence. Experts see the global financial crisis as trouble ahead for the euro.

The euro area has so far defied economist Milton Friedman's forecast that it would splinter as soon as the “global economy hits a real bump.” While the euro region remains in one piece amid its deepest financial crisis, according to Bloomberg, the turmoil is placing new demands on the European Central Bank. Among the most urgent: shifting focus as the recession quashes the inflation threat that dominated the ECB's agenda for the last decade.

The bloc is celebrating the anniversary with the introduction of a 2-euro coin that will be available early in 2009.

The euro is now the national currency of some 320 of 495 million Europeans.

The initial signatories were France, Austria, Belgium, Germany, Finland, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Greece joined the euro zone in 2001, Slovenia in 2007 and Cyprus and Malta in 2008. Slovakia joins on Jan 1.

Analysts see Poland's possible entry in 2012 or 2013.

RELATED READING:

Trichet economy meets Friedman's bump (Bloomberg 8 Dec 2008)
http://www.bloomberg.com/apps/news?pid=20601068&sid=aeh7yJg7sTz4&refer=home

ECOFIN EU presidency's Bajuk says euro zone inflation is 'very serious problem' (Thompson/Hemscott 12 Feb 2008)