The euro turns 20: the maturity of a currency that was born as a symbol of economic stability

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The euro turns 20: the maturity of a currency that was born as a symbol of economic stability

The euro turns 20: the maturity of a currency that was born as a symbol of economic stability

The common currency of a large part of European countries has been in circulation for two decades and, despite the rise in prices, experts agree that it has … 01.01.2022, Sputnik World

2022-01-01T09: 00 + 0000

2022-01-01T09: 00 + 0000

2022-01-01T12: 07 + 0000

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January 1, 2022 will mark the 20th anniversary of the entry into circulation of the euro as the official currency of Spain. That dawn you could still buy the churros with pesetas, but that new currency was already worth it, which used to come paired with a “changer” where the necessary amount was translated. Suddenly, you went from 1,000 to six. And even worse: from 100 you went to one, which in comparison was much more than the previous price. Both figures appeared on the tickets, to the usual astonishment of the customer. With the euro, in Spain prices rose by up to 66% on certain products. Even so, there was a certain joy in leaving those small and fat dogs that had shown the faces of various monarchs, of the dictator Francisco Franco and that of the emeritus king, Juan Carlos I. It was an illusion to be one of the 19 countries that drew that silver metal with a gold border. For some, it was a blow to the pocket. For others, a way to stabilize the economy of the area and to compete with other powerful currencies such as the US dollar or the Chinese yuan. As a general rule, the balance, two decades later, is positive. Despite the fact that the road has been dotted with potholes. During the 2008 crisis, for example, there were doubts as to whether certain nations, such as Greece, could stick with it or would have to leave it. In the end, he has resisted. With doubts and skepticism in large doses, but also with confidence and pride. According to several experts consulted by the Efe agency, the conclusion is firm: it fostered a framework of exchange and monetary stability that has favored growth capacity and progress in convergence with the European Union (EU). That explains Juan Ignacio Crespo, financial analyst. The balance, he claims, seems “extremely positive.” “And more in a stage in which we have had to experience catastrophes such as the financial crisis of 2008 and later the crisis caused by the pandemic in the last two years. It would have been much more complicated if we had been out of the euro,” he says. His resolution does not fully agree with that of Albert Guivernau, professor of Business and Economics at the Abat Oliba CEU University. The teacher believes that all the advantages of the euro did not serve to cushion the financial crisis and that this “had a very similar impact on all EU countries, whether or not they were part of the eurozone.” In addition, Guivernau argues, the EU carries a burden and it is the inequality between the productive structures of the member countries and the lack of mobility of workers. Neither is there a complete banking union or fiscal integration. Javier Fernández-Pacheco, professor at EAE Business School, points out that “at the European level, the single currency has decisively helped to facilitate intra-community trade.” Something that has benefited Spain, whose main export markets are France and Germany. With the change, apart, there was this increase in cost. The rise raised inflation from 2.7% in December 2001 to 4% in December 2002. It was one of the complaints from the Organization of Consumers and Users (OCU), which revealed how among the most notable increases there were not only prices private, but also public: transport tickets, postal rates or sports vouchers. The then Secretary of State for the Economy, Luis de Guindos, acknowledged that the entry of the euro had caused price increases, but stressed that the new currency had allowed the country to grow above 2% and create jobs at a time of slowdown. Their arrival in coexistence with the pesetas led the Bank of Spain to open a period to exchange the previous banknotes and coins, valid between 1868 and 2002. The period lasted until June 30, 2021 and, according to the institution published, it had been exchanged 96.8%, about 48,750 million euros. Most of it was changed in the first six months of the life of the new currency, but queues could also be seen in the last hours: the amount of pesetas not exchanged amounts to about 1,575 million euros. Now it is expected that they will only have value as a collector’s item or souvenir, perhaps to obtain a higher quantity and to be able to buy some churros. No frights or double bills.

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The common currency of most European countries has been in circulation for two decades and, despite the rise in prices, experts agree that it has favored growth.