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If you've planned a holiday
to Europe with your family this Summer you'll probably be
paying for your meals and entertainment in Euros, Europe's
new single currency. The Euro became legal tender on 1st January
1999 in Austria, Belgium, Finland, France, Germany, Ireland,
Italy, Luxembourg, the Netherlands, Portugal and Spain. Greece
joined on 1st January 2001. For the time being, Britain, Sweden
and Denmark have opted out of the European common currency.
Since 1st January this year, all old currencies have been
phased out and replaced by the Euro.
At the beginning of this year, more than
14 billion euro bank notes and 50 billion euro coins replaced
almost as many national currency bank notes and coins. Never
before has an operation of this scale taken place - it affected
300 million people and took 10 years of preparation.
Although some are sceptical about this
huge change and abolition of traditional money in European
countries, there are some real pluses to having a single currency
in Europe:
1) Many prices have been pushed down as
retailers compete to match the lowest price - but beware of
some retailers who have in fact used the Euro as a chance
to increase prices.
2) Transaction costs are cheaper. You
will be able to use the same currency throughout your holiday
and will incur no exchange charges. For example, when visiting
a museum in France you can pay the entrance fee from euro
coins leftover from your stay in Spain, or when eating out
in Italy, you can use euro notes which you withdrew from a
bank in Portugal. This will save you both time and money.
3) Also, when shopping in Europe all prices
will be given in euros making it easier to compare prices
and help you make the right choice. No longer will you have
to struggle to convert four million Italian lire!
4) This system should make it easier to
work out exactly how much your money is worth. Using a simple
decimal system will make it easier to calculate how much you
have paid and how much change to expect. As the time of writing
the euro is worth 63p.
5) You don't need to worry about using
up handfuls of small change just as you are about to enter
another country as the euro coins can probably still be used
over the border.
There are seven different notes and eight
coins which have replaced the notes and coins of the participating
countries. The denominations for the notes are 5, 10, 20,
50, 100, 200 and 500 euro. They are all exactly the same throughout
the euro area and they depict architectural styles in the
history of Europe; windows and bridges bringing people together.
The denominations for the coins are 1, 2, 5, 10, 20, 50 cent
and 1 and 2 euro. One side of the coin is universal and the
reverse side reflects the nationality. All coins, whatever
the national face are accepted in all euro area countries.
Before travelling it is worthwhile taking
time to study the new currency to familiarise yourself with
it. Euros can be obtained from all UK banks and building societies,
bureaux de change and many travel agents. It will still be
necessary to shop around until you find the best conversion
rates and the lowest commissions.
Although your old currencies from each
of the twelve countries can no longer be used as payment for
goods, you can still exchange the old national bank notes
against the euro free of charge. This can be done at the national
central banks in the twelve countries listed above at least
until the end of this year, in most countries the redemption
periods are longer or indefinite.
On the high street in the UK, several
major retailers have decided to accept euros as payment for
goods. WH Smith, Dixons and Virgin will accept the single
European currency nationwide, whilst Body Shop, Boots and
Marks and Spencer will accept the currency in some of the
larger stores.
HAPPY HOLIDAYS!!
For further information
about the euro, visit the following websites:
www.euro.ecb.int
www.euro-info.org.uk
www.euro.gov.uk
www.euro-institut.org
or call the euro helpline on 08456 010199
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