Weekly Online Lesson Online Lesson Archive Grade Level: 7-12 Subject: Social Studies/Math

Greece Adopts the Euro

On January 1, 2001, Greece became the twelfth member of the European Union to adopt the single currency, the euro, after working to meet the EU's economic convergence criteria.

In less than two years, the Greek central bank worked to bring high interest rates down to euro levels of 4.75 percent. Greece also squeezed double digit inflation in the early 1990s down to 4.2 percent. Control of the country's monetary policy will now be turned over to the European Central Bank.

Shops have already started displaying prices in both drachmas (Greek currency) and euros —well ahead of a January deadline for bigger firms and March for small businesses. Thousands of Greeks welcomed both the New Year and the euro with midnight fireworks and late night dancing in Athens's central Syntagma square.

As with the eleven other EU Member States adopting the single currency, actual euro notes are scheduled to be in circulation by January 2002, and after March 2002 the drachma will no longer be legal tender.

This week's online lesson is about the European Union and a single currency for European countries.

Welcome to Europa

Europa is the portal site of the European Union, providing up-to-date coverage of European Union affairs and essential information on European integration. Start your exploration of this week's topic by learning some basic information about the EU. Click Abc and read about the European Union member states, the objectives of the EU, and the governing institutions. For additional historical information, visit the History of European Integration since 1946 and click any date.

Given the stated objectives, how will the EU influence the lives of European citizens today? What are European citizen's rights? See Citizen's Rights for more details.

What countries are among the Member States of the European Union? Click Member States to see a map list, and then click the name of each member to learn basic country information.

The Euro

On January 1, 1999, eleven of the fifteen EU Member States adopted the euro as the official currency. Although euro notes and coins will not be circulated until 2002, the new currency is being used as "written money" in such forms as bank checks, traveler's checks, bank transfers, credit cards, etc. Visit the Euro home page and select your native language (English for most of you reading this).

Start by clicking the Timetable link. Study the currency integration timetable, paying particular attention to the events of January 1, 2002. What measures are being taken to ensure an orderly changeover?

Now that you know the integration timetable, click Coins - Notes - Sign to find a description of the coming bank notes and coins. As you read the descriptions, click Notes or Coins to see mock-ups of the new currency.

Value of the Euro

What is the current value of one euro? Find out by visiting the web site of the European Central Bank (the institution responsible for EU monetary policy) and then click Daily euro foreign exchange reference rates. In the chart, find your local currency (USD for US dollar) and note the Spot exchange rate. This figure shows the price you would pay to buy one euro.

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