Euro coins and notes set for low-key 10th anniversary

By Alexandra Mayer-Hohdahl Dec 29, 2011, 3:06 GMT

Brussels - They are used by millions of Europeans every day, but it will be with little fanfare that euro coins and banknotes turn 10 on Sunday - as politicians still struggle to end the debt crisis that has beleaguered the common currency area for nearly two years.

'We are not planning any particular celebration. That's not what the euro is here for. We are not here either to celebrate things,' a spokesman for the European Commission, Olivier Bailly, dryly told reporters in Brussels recently.

But, a decade ago, the mood was very different.

On January 1, 2002, the introduction of Europe's first-ever single currency was accompanied by midnight firework displays, speeches by politicians hailing a new sense of togetherness and people rushing to get their hands on the shiny coins and crisp notes.

'It is our money and it will be a symbol of European unity and power,' predicted France's then-prime minister, Lionel Jospin. 'Earlier, we used to say, 'The king is dead, long live the king'. Now we can say, 'Goodbye franc, long live the euro.''

France was joined by 11 other countries - Austria, Belgium, Finland, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain - in blazing the euro trail.

Five more nations have since introduced the common currency: Slovenia, Cyprus, Malta, Slovakia and most recently - on January 1, 2011 - Estonia.

Another six states in Europe have also been allowed to use the euro even though they are not part of the European Union: Andorra, Kosovo, Monaco, Montenegro, San Marino and Vatican City.

But the enthusiasm of prospective joiners has since plummeted. Poland, for instance, makes a point of not naming a target year for its euro adoption - even during its turn at the EU presidency, when its finance minister noted the currency area's 'significant ... flaws.'

But Bailly was quick to point out that the euro remains the second reserve currency in the world after the dollar, with 26 per cent of global reserves held in euros.

He also credited the euro for lowering inflation rates in Europe and saving the bloc 20 billion to 25 billion euros a year. Not having a multitude of currencies has also simply made life easier for European citizens, business and visitors, he argued.

'Twenty-three European countries, ... altogether 322 million citizens use this currency, which we are very proud of and which has a long future ahead of it,' he said.

Market speculators have not always agreed.

The euro was trading around 1.30 against the dollar this week, down from a high of 1.48 in May, after a summer of market jitters over whether eurozone politicians would be able to tame the debt crisis and prevent a collapse of the euro.

But officials are quick to point out that the euro has remained relatively stable if you look at the big picture - in January 2011, it once traded at 1.29 euros to the dollar.

'There clearly is today a problem of trust in the capacity of the European Union to overcome the debt crisis,' Bailly said. 'But the current crisis is not a crisis of the euro ... Its position on the international markets is extremely strong.'

EU Economy Commissioner Olli Rehn argued that the debt crisis - set aflame by Greece's application for a bailout in April 2010 and fed further by the subsequent rescues of Ireland and Portugal, as well as worries over Italy - should serve as an opportunity.

The European economic union that underlies the euro must be further strengthened, he argued, calling recently agreed tougher budget rules a good first step.

'We have the bricks and mortar, we have the manpower,' Rehn said in a statement. 'We now look forward to political will, strong determination and swift action to restore economic growth ... and restore confidence in investors and the public.'

In the meantime, Europe will at least be acknowledging the 10-year euro anniversary - if not celebrating it. A commemorative 2-euro coin has been created; 90 million of them will be minted and distributed around the bloc, according to Bailly.

'Today, it is important to remain proud of our single currency,' he said. 'We consider that it remains one of the major achievements of European history.'