of a two-year transition period.The ChangeoverThe changeover has four main dates established by the three phases discussed earlier. January 1, 1999 This is when the euro became the single currency for eleven EU member states; Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, the Netherlands, Spain, and Portugal. The national currencies of these eleven members are, in effect, subdivisions of the euro. National notes and coins will stay in use only until 2002, when they will then be withdrawn permanently and replaced by the euro. The conversion rates between these national currencies and the euro are fixed irrevocably. Also, a single monetary policy is set forth by the European Central Bank. January 1, 1999 to December 1, 2001 This is the transition period during which national currencies are phased out of use in favor of the euro. Although the euro can be used, it exists mainly as an accounting currency in order to allow a period of adjustment. While some places of business may accept the euro, it cannot be expected to be widely used or accepted until the end of the transition period. Since this transition cannot occur overnight, this transition period has allowed for an orderly changeover to the euro by the whole community. During this transition period on January 1, 2001, Greece adopted the euro as their national currency and became a member of the euro-zone increasing it to twelve countries. January 1, 2002 This date begins the circulation of the euro into the economy. The national banknotes and coins of member countries begin to be withdrawn. A short dual circulation period is set forth, which allows two months for the national banknotes and coins to be completely withdrawn from the economy. All public administration and scriptural transactions must now use the euro. February 28, 2002 This date marks the end of the dual circulation period and officially completes the changeover. National banknotes and coin...
