57-723: The Werner Plan (or Werner Report) was drawn up by a working group chaired by Pierre Werner , Luxembourg 's Prime Minister and Minister for Finances , and presented in October 1970. It was conducted after the European Summit in The Hague in 1969, where the Heads of State and Government of the European Community agreed to prepare a plan for economic and monetary union . The three stage plan proposed gradual, institutional reform leading to
114-524: A common side showing the denomination or value, and a map in the background. Due to the linguistic plurality in the European Union , the Latin alphabet version of euro is used (as opposed to the less common Greek or Cyrillic) and Arabic numerals (other text is used on national sides in national languages, but other text on the common side is avoided). For the denominations except the 1-, 2- and 5-cent coins,
171-599: A national side showing an image specifically chosen by the country that issued the coin. Euro coins from any member state may be freely used in any nation that has adopted the euro. The coins are issued in denominations of €2 , €1 , 50c , 20c , 10c , 5c , 2c , and 1c . To avoid the use of the two smallest coins, some cash transactions are rounded to the nearest five cents in the Netherlands and Ireland (by voluntary agreement) and in Finland and Italy (by law). This practice
228-594: A budget deficit of less than 3% of their GDP, a debt ratio of less than 60% of GDP (both of which were ultimately widely flouted after introduction), low inflation, and interest rates close to the EU average. In the Maastricht Treaty, the United Kingdom and Denmark were granted exemptions per their request from moving to the stage of monetary union which resulted in the introduction of the euro (see also United Kingdom and
285-547: A foreign trading currency in Cuba since 1998, Syria since 2006, and Venezuela since 2018. In 2009, Zimbabwe abandoned its local currency and introduced major global convertible currencies instead, including the euro and the United States dollar. The direct usage of the euro outside of the official framework of the EU affects nearly 3 million people. Outside the eurozone, two EU member states have currencies that are pegged to
342-577: A medium-power satellite in Luxembourg, enabling his country to become a forerunner in global satellite telecommunications. Pierre Werner was also a member of the National Ethics Committee of Luxembourg. Single European currency The euro ( symbol : € ; currency code : EUR ) is the official currency of 20 of the 27 member states of the European Union . This group of states
399-500: A monetary agreement: British Overseas Territory : Unilateral adopters: The following EU member states committed themselves in their respective Treaty of Accession to adopt the euro. However they do not have a deadline to do so and can delay the process by deliberately not complying with the convergence criteria (such as by not meeting the convergence criteria to join ERM II). Bulgaria and Romania are actively working to adopt
456-583: Is a major donor to the EFSF. To be included in the eurozone, countries had to fulfil certain convergence criteria , but the meaningfulness of such criteria was diminished by the fact it was not enforced with the same level of strictness among countries. According to the Economist Intelligence Unit in 2011, "[I]f the [euro area] is treated as a single entity, its [economic and fiscal] position looks no worse and in some respects, rather better than that of
513-524: Is also the sole currency in three overseas territories of France that are not themselves part of the EU, namely Saint Barthélemy , Saint Pierre and Miquelon , and the French Southern and Antarctic Lands , as well as in the British Overseas Territory of Akrotiri and Dhekelia . The euro has been adopted unilaterally as the sole currency of Montenegro and Kosovo. It has also been used as
570-465: Is discouraged by the commission, as is the practice of certain shops of refusing to accept high-value euro notes. Commemorative coins with €2 face value have been issued with changes to the design of the national side of the coin. These include both commonly issued coins, such as the €2 commemorative coin for the fiftieth anniversary of the signing of the Treaty of Rome, and nationally issued coins, such as
627-445: Is officially known as the euro area or, more commonly, the eurozone . The euro is divided into 100 euro cents . The currency is also used officially by the institutions of the European Union , by four European microstates that are not EU members, the British Overseas Territory of Akrotiri and Dhekelia , as well as unilaterally by Montenegro and Kosovo . Outside Europe, a number of special territories of EU members also use
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#1732851269612684-679: The Bretton Woods conference which set up the International Monetary Fund (IMF). Werner was appointed as Finance Minister of Luxembourg in 1953, and was 19th and 21st Prime Minister from 1959 to 1974 and from 1979 to 1984. He also served as Minister for Culture. As head of government, he governed in coalition with the Democratic Party (1959–1964), then the Luxembourg Socialist Workers' Party (1964–1969), then
741-720: The Cours Supérieurs de Luxembourg (a forerunner to the University of Luxembourg ) from 1933 to 1934 and continued his higher education at the Law Faculty of the University of Paris and the École libre des sciences politiques from 1934 to 1937. In 1938, he completed a PhD in law in Luxembourg. He was involved in several student organisations, becoming chairman of the Association of Catholic Students from 1935 to 1937 and vice-president of
798-626: The Pax Romana movement (The International Movement for Intellectual and Cultural Affairs) in 1937. In 1938 he became a lawyer in Luxembourg City, before becoming a banker instead. During the Nazi occupation of Luxembourg (1940–1945) Werner gave clandestine support to the resistance against the occupation forces. After World War II he became the Controller of the banking system in his country. He attended
855-591: The dobra of São Tomé and Príncipe was officially linked with the euro. Additionally, the Moroccan dirham is tied to a basket of currencies, including the euro and the US dollar, with the euro given the highest weighting. These countries generally had previously implemented a currency peg to one of the major European currencies (e.g. the French franc , Deutsche Mark or Portuguese escudo ), and when these currencies were replaced by
912-501: The " eurozone ", some 347 million people in total as of 2023 . According to bilateral agreements with the EU , the euro has also been designated as the sole and official currency in a further four European microstates awarded minting rights (Andorra, Monaco, San Marino and the Vatican City). All but one (Denmark) current, and any potential future EU members, are obliged to adopt the euro when economic conditions permit. The euro
969-647: The DP again (1969–1974). Werner and the CSV went into opposition for the first time since World War II from 1974 to 1979. When he returned to power, his last government was another coalition with the DP (1979–1984). Werner was instrumental in solving the "empty chair" crisis provoked in 1965 by President Charles de Gaulle who, dissatisfied with the orientations of European integration at that time, had decided France would suspend its participation in meetings with other Member States; Werner persuaded France to resume its seat, thus re-enabling
1026-627: The ECB's banknotes are put into circulation by the NCBs, thereby incurring matching liabilities vis-à-vis the ECB. These liabilities carry interest at the main refinancing rate of the ECB. The other 92% of euro banknotes are issued by the NCBs in proportion to their respective shares of the ECB capital key, calculated using national share of European Union (EU) population and national share of EU GDP, equally weighted. Member states are authorised to print or to commission bank note printing. As of November 2022 , these are
1083-475: The Grand Duchy. He placed Luxembourg on the map of global satellite communications. He is remembered for having used " tripartite " social mediation (industry, labour and government) to overcome the severe steel crisis which lasted from 1979 to 1984. He placed the process of European integration at the centre of the policy of his country. With friends such as Joseph Bech, Jean Monnet and Robert Schuman , Werner
1140-579: The Portuguese escudos , which ceased to have monetary value after 31 December 2002, although banknotes remained exchangeable until 2022. A special euro currency sign (€) was designed after a public survey had narrowed ten of the original thirty proposals down to two. The President of the European Commission at the time ( Jacques Santer ) and the European Commissioner with responsibility for
1197-648: The US dollar again had a face value higher than the Euro, at around US dollar 0.95 per euro. The euro is managed and administered by the European Central Bank (ECB, Frankfurt am Main ) and the Eurosystem , composed of the central banks of the eurozone countries. As an independent central bank, the ECB has sole authority to set monetary policy . The Eurosystem participates in the printing, minting and distribution of euro banknotes and coins in all member states, and
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#17328512696121254-478: The US or the UK" and the budget deficit for the euro area as a whole is much lower and the euro area's government debt/GDP ratio of 86% in 2010 was about the same level as that of the United States. "Moreover", they write, "private-sector indebtedness across the euro area as a whole is markedly lower than in the highly leveraged Anglo-Saxon economies". The authors conclude that the crisis "is as much political as economic" and
1311-719: The United Kingdom, in 1930, Werner was Honorary President of the Optimists Cricket Club , which he promoted during, between, and after his premierships. In his honour, Luxembourg's main cricket ground, the Pierre Werner Cricket Ground in Walferdange , is named after him. Pierre Werner died on 24 June 2002, in Luxembourg City. Pierre Werner served as 'President of the Government' (Prime Minister) from 1959 to 1974 and from 1979 to 1984. On each occasion this post
1368-430: The United States were relatively strong creditors – gained attention in summer 2012 even as Germany received a debt-rating warning of its own. The euro is the sole currency of 20 EU member states : Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. These countries constitute
1425-464: The coin to commemorate the 2004 Summer Olympics issued by Greece. These coins are legal tender throughout the eurozone. Collector coins with various other denominations have been issued as well, but these are not intended for general circulation, and they are legal tender only in the member state that issued them. A number of institutions are authorised to mint euro coins: The design for the euro banknotes has common designs on both sides. The design
1482-490: The decision-making process. In 1970, Werner was given the mandate by the heads of State or government to draft, with a group of experts, a blueprint for an economic and monetary union within the EEC. His report advocated gradual reforms, the irreversible fixing of exchange rates, and the introduction of a single currency within a decade. As it happened, the plan was not implemented at the time, due to internal political disagreements, and
1539-537: The euro ( Yves-Thibault de Silguy ) then chose the winning design. Regarding the symbol, the European Commission stated on behalf of the European Union : The symbol € is based on the Greek letter epsilon (Є), with the first letter in the word "Europe" and with 2 parallel lines signifying stability. The European Commission also specified a euro logo with exact proportions. Placement of the currency sign relative to
1596-543: The euro ). The name "euro" was officially adopted in Madrid on 16 December 1995. Belgian Esperantist Germain Pirlot , a former teacher of French and history, is credited with naming the new currency by sending a letter to then President of the European Commission , Jacques Santer , suggesting the name "euro" on 4 August 1995. Due to differences in national conventions for rounding and significant digits, all conversion between
1653-682: The euro , which is a precondition to joining the eurozone. The Danish krone and Bulgarian lev are pegged due to their participation in the ERM ;II . Additionally, a total of 21 countries and territories that do not belong to the EU have currencies that are directly pegged to the euro including 14 countries in mainland Africa ( CFA franc ), two African island countries ( Comorian franc and Cape Verdean escudo ), three French Pacific territories ( CFP franc ) and two Balkan countries, Bosnia and Herzegovina ( Bosnia and Herzegovina convertible mark ) and North Macedonia ( Macedonian denar ). On 1 January 2010,
1710-485: The euro as their currency. Additionally, over 200 million people worldwide use currencies pegged to the euro . The euro is the second-largest reserve currency as well as the second-most traded currency in the world after the United States dollar . As of December 2019, with more than €1.3 trillion in circulation, the euro has one of the highest combined values of banknotes and coins in circulation in
1767-449: The euro their currencies became pegged to the euro. Pegging a country's currency to a major currency is regarded as a safety measure, especially for currencies of areas with weak economies, as the euro is seen as a stable currency, prevents runaway inflation, and encourages foreign investment due to its stability. In total, as of 2013 , 182 million people in Africa use a currency pegged to
Werner Plan - Misplaced Pages Continue
1824-592: The euro, while the remaining states do not have a migration plan in progress. The euro is divided into 100 cents (also referred to as euro cents , especially when distinguishing them from other currencies, and referred to as such on the common side of all cent coins). In Community legislative acts the plural forms of euro and cent are spelled without the s , notwithstanding normal English usage. Otherwise, normal English plurals are used, with many local variations such as centime in France. All circulating coins have
1881-421: The eurozone are also treated as domestic transactions; however paper-based payment orders, like cheques, have not been standardised so these are still domestic-based. The ECB has also set up a clearing system , TARGET , for large euro transactions. The euro was established by the provisions in the 1992 Maastricht Treaty . To participate in the currency, member states are meant to meet strict criteria , such as
1938-479: The former currencies. Between December 1999 and December 2002, the euro traded below the US dollar, but has since traded near parity with or above the US dollar, peaking at US$ 1.60 on 18 July 2008 and since then returning near to its original issue rate. On 13 July 2022, the two currencies hit parity for the first time in nearly two decades due in part to the 2022 Russian invasion of Ukraine . Then, in September 2022,
1995-548: The initial designs by Robert Kalina were of specific bridges, including the Rialto and the Pont de Neuilly , and were subsequently rendered more generic; the final designs still bear very close similarities to their specific prototypes; thus they are not truly generic. The monuments looked similar enough to different national monuments to please everyone. The Europa series, or second series, consists of six denominations and no longer includes
2052-447: The irrevocable fixing of exchange rates and the adoption of a single currency within a decade, but it did not recommend the establishment of a central bank . The plan was never implemented because of pressure of the United States ( France retired its support after a France-US meeting in the Azores at the end of 1971). There are several references to "the transfer of responsibility from
2109-497: The map only showed the 15 member states of the union as of 2002. Beginning in 2007 or 2008 (depending on the country), the old map was replaced by a map of Europe also showing countries outside the EU . The 1-, 2- and 5-cent coins, however, keep their old design, showing a geographical map of Europe with the EU member states as of 2002, raised somewhat above the rest of the map. All common sides were designed by Luc Luycx . The coins also have
2166-542: The national authorities to Community authorities". Pierre Werner Pierre Werner (29 December 1913 – 24 June 2002) was a Luxembourgish politician in the Christian Social People's Party (CSV) who was the 19th prime minister of Luxembourg from 1959 to 1974 and the 21st from 1979 to 1984. Pierre Werner was born in Saint-André-lez-Lille , Nord, France, to parents from Luxembourg. He studied at
2223-680: The national currencies ceased to be legal tender varied from member state to member state. The earliest date was in Germany, where the mark officially ceased to be legal tender on 31 December 2001, though the exchange period lasted for two months more. Even after the old currencies ceased to be legal tender, they continued to be accepted by national central banks for periods ranging from several years to indefinitely (the latter for Austria, Germany, Ireland, Estonia and Latvia in banknotes and coins, and for Belgium, Luxembourg, Slovenia and Slovakia in banknotes only). The earliest coins to become non-convertible were
2280-554: The national currencies had to be carried out using the process of triangulation via the euro. The definitive values of one euro in terms of the exchange rates at which the currency entered the euro are shown in the table. The rates were determined by the Council of the European Union , based on a recommendation from the European Commission based on the market rates on 31 December 1998. They were set so that one European Currency Unit (ECU) would equal one euro. The European Currency Unit
2337-688: The numeric amount varies from state to state, but for texts in English published by EU institutions, the symbol (or the ISO -standard "EUR") should precede the amount. Following the U.S. financial crisis in 2008, fears of a sovereign debt crisis developed in 2009 among investors concerning some European states, with the situation becoming particularly tense in early 2010 . Greece was most acutely affected, but fellow Eurozone members Cyprus , Ireland , Italy , Portugal , and Spain were also significantly affected. All these countries used EU funds except Italy, which
Werner Plan - Misplaced Pages Continue
2394-523: The obligation to adopt the euro by not meeting the monetary and budgetary requirements. All nations that have joined the EU since 1993 have pledged to adopt the euro in due course. The Maastricht Treaty was amended by the 2001 Treaty of Nice , which closed the gaps and loopholes in the Maastricht and Rome Treaties. The 20 participating members are EU Outermost Regions : Overseas Territories : Special Autonomous Territories : Microstates with
2451-518: The oil crisis; however the “ Werner Plan ” was later revived and extended by Jacques Delors . Its principles were enshrined in the Treaty of Maastricht , paving the way for the single European currency , i.e. the euro . As Prime Minister, Werner, a Christian Democrat , undertook the diversification of the national economy, hard hit by a major Europe-wide crisis in the steel industry, by attracting new industrial investments, as well as financial services to
2508-444: The operation of the eurozone payment systems. The 1992 Maastricht Treaty obliges most EU member states to adopt the euro upon meeting certain monetary and budgetary convergence criteria , although not all participating states have done so. Denmark has negotiated exemptions, while Sweden (which joined the EU in 1995, after the Maastricht Treaty was signed) turned down the euro in a 2003 non-binding referendum , and has circumvented
2565-403: The printers: Capital within the EU may be transferred in any amount from one state to another. All intra-Union transfers in euro are treated as domestic transactions and bear the corresponding domestic transfer costs. This includes all member states of the EU, even those outside the eurozone providing the transactions are carried out in euro. Credit/debit card charging and ATM withdrawals within
2622-512: The project having been fostered by Erna Hennicot-Schoepges , then Minister for Culture, Universities and Research in Luxembourg. IPW organises seminars and conferences aimed at promoting better understanding among the three founding countries, but also more widely throughout Europe. Werner, a sponsor of culture and especially music, actively promoted the restoration of Luxembourg's heritage (e.g. Vianden Castle ). A fan of cricket since living in London,
2679-502: The public; a design competition will also be held. Since 1 January 2002, the national central banks (NCBs) and the ECB have issued euro banknotes on a joint basis. Eurosystem NCBs are required to accept euro banknotes put into circulation by other Eurosystem members and these banknotes are not repatriated. The ECB issues 8% of the total value of banknotes issued by the Eurosystem. In practice,
2736-455: The result of the fact that the euro area lacks the support of "institutional paraphernalia (and mutual bonds of solidarity) of a state". The crisis continued with S&P downgrading the credit rating of nine euro-area countries, including France, then downgrading the entire European Financial Stability Facility (EFSF) fund. A historical parallel – to 1931 when Germany was burdened with debt, unemployment and austerity while France and
2793-464: The successor to the European Currency Unit (ECU). The notes and coins for the old currencies, however, continued to be used as legal tender until new euro notes and coins were introduced on 1 January 2002. The changeover period during which the former currencies' notes and coins were exchanged for those of the euro lasted about two months, until 28 February 2002. The official date on which
2850-472: The world. The name euro was officially adopted on 16 December 1995 in Madrid . The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1 (US$ 1.1743 at the time). Physical euro coins and banknotes entered into circulation on 1 January 2002, making it the day-to-day operating currency of its original members, and by March 2002 it had completely replaced
2907-433: The €500 with issuance discontinued as of 27 April 2019. However, both the first and the second series of euro banknotes, including the €500, remain legal tender throughout the euro area. In December 2021, the ECB announced its plans to redesign euro banknotes by 2024. A theme advisory group, made up of one member from each euro area country, was selected to submit theme proposals to the ECB. The proposals will be voted on by
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#17328512696122964-663: Was Chairman of the Governing Board of the Compagnie luxembourgeoise de télédiffusion (CLT, Radio Luxembourg). Werner placed Luxembourg on the map of global satellite communications. From 1989 to 1996, he was chairman of the board directors of the Société Européenne des Satellites , becoming honorary chairman in 1996. During this last term of office, he had laid the ground for the establishment of this company. He worked hard both within Luxembourg and abroad to realise his vision for
3021-475: Was a determined advocate of European integration. During his terms in office, he negotiated the relocation of several European institutions to Luxembourg. The Pierre Werner Institute (Institut Pierre Werner, IPW) was created in Luxembourg in 2003 at the behest of the Foreign Ministers of France, Germany and Luxembourg (at the time, respectively Dominique de Villepin , Joschka Fischer and Lydie Polfer ),
3078-560: Was already two years old. While the conversion rates for the initial eleven currencies were determined only hours before the euro was introduced, the conversion rate for the Greek drachma was fixed several months beforehand. The currency was introduced in non-physical form ( traveller's cheques , electronic transfers, banking, etc.) at midnight on 1 January 1999, when the national currencies of participating countries (the eurozone) ceased to exist independently. Their exchange rates were locked at fixed rates against each other. The euro thus became
3135-496: Was an accounting unit used by the EU, based on the currencies of the member states; it was not a currency in its own right. They could not be set earlier, because the ECU depended on the closing exchange rate of the non-euro currencies (principally pound sterling ) that day. The procedure used to fix the conversion rate between the Greek drachma and the euro was different since the euro by then
3192-667: Was combined with several ministerial portfolios : Werner was a member of parliament and leader of the CSV from 1974 to 1979. During this period he was the leader of the parliamentary opposition. In 1979 the CSV won the parliamentary elections in Luxembourg. At this time, Werner was also elected to the European Parliament but he chose not to sit as an MEP, to serve as President of the Government. After withdrawing from politics in 1984, Pierre Werner continued to assume some official duties and pursue cultural activities. From 1985 to 1987, he
3249-505: Was created by the Austrian designer Robert Kalina . Notes are issued in €500 , €200 , €100 , €50 , €20 , €10 , and €5 . Each banknote has its own colour and is dedicated to an artistic period of European architecture. The front of the note features windows or gateways while the back has bridges, symbolising links between states in the union and with the future. While the designs are supposed to be devoid of any identifiable characteristics,
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