On 1st January 1999 eleven member states of the European Union, including Ireland, will form an Economic and Monetary Union (EMU) and will create a single currency, the
euro, Greece joined on 1st January 2001. However, euro notes and coins will not come into circulation until 1st January 2002. This document describes how the changeover will happen. Our aim is to stimulate interest in the new currency among teachers and to get you thinking about what effects it might have on your work in class. The aim is to do this by posing a series of questions and providing answers relevant to you in your work.
Which Member States are adopting the euro?
In May 1998, EU leaders confirmed that eleven EU member states met the qualifying criteria to adopt the euro with effect from 1st January 1999. The eleven are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain.
Greece met the criteria and joined from 1st January 2001. Denmark and the UK decided not to join at this point and Sweden
did not meet the qualifying criteria.
What is the euro?
The euro is the new currency that will replace the national currencies of the eleven participating states. There will be 100 cent to the euro and there will be coins of 1, 2, 5,10, 20, and 50 cent and 1 and 2 euro. The new notes will be in denominations of 5, 10, 20, 50, 100, 200 and 500 euro. The exact worth of the euro will not be known until 1st January 1999 - the day the euro will come into being. However, as an illustration, you might think of the euro being worth 80 Irish pence: this would mean that an Irish pound would get you 1 euro and 25 cents.
How has the single currency, the euro, come about?
The idea of a single currency has a long history going back at least to 1970. In 1979, the European Monetary System (EMS) was founded to help ensure currency stability in the Community. In the late 1980's the Single Market programme gave fresh impetus to it. The decision to move towards Economic and Monetary Union (EMU) was enshrined in the
Maastricht Treaty in 1992. On 1st January 1999, EMU will commence. On that day the euro will come into being as the currency of those member states participating in EMU, including Ireland.
What will be the effects of the euro?
The introduction of the euro brings with it several advantages such as: the elimination of exchange rate risks and foreign currency transaction costs for trade, tourism and investment among participating member states; the likelihood of low and fairly uniform interest rates; promotion of price stability, sound public finances and sustained low inflation growth.
There are, potentially, certain disadvantages. For example, a participating member state
will no longer be able to devalue its currency or change its interest rates in response to
changes in economic circumstances. A single monetary policy also involves a certain pooling
of sovereignty. The changeover itself may involve short-term costs for business and others. However, these should be outweighed by the longer term advantages of the euro outlined above.
How will the euro affect my work as a Primary Teacher?
The current curriculum provides opportunities for teachers to develop in children, particularly at the senior end of the school, an awareness and appreciation of their European citizenship. The revised curriculum, when it becomes available, will more formally provide these opportunities, particularly when teaching the new Social, Personal and Health Education (SPHE) and Social, Environmental and Scientific Education (SESE) programmes. In the case of Mathematics, it would not be sound educationally to introduce the euro formally until the school year 2001/2002 during which the notes and coins will come into circulation and can be used in teaching the concept of money. The revised Mathematics syllabus strongly reaffirms the use of manipulatives in the teaching of mathematical concepts. It is envisaged that senior classes will undertake conversion exercises in the run up to the formal introduction of the euro notes and coins on 1st January, 2002. The revised Mathematics syllabus will facilitate a smooth transition to the euro at the appropriate time as alternative exemplars, involving the new currency, are incorporated.
Guidelines in relation to the euro and primary teaching will be prepared for issue to teachers early next year (1999).
How will the euro affect my work as a Postprimary Teacher?
Some subjects at postprimary level will be affected, even if in a limited way in most cases, by the introduction of the euro. In subjects where its impact is likely to be significant, the NCCA will be asked to review the syllabi in the light of the currency changeover. Guidelines will be given to schools and teachers as to how any new arrangements can be incorporated into existing courses and programmes. The guidelines will also highlight opportunities for treatment of the euro within existing courses and programmes. They will be prepared for issue to teachers early next year
(1999).
Where revised syllabi are being introduced into schools, the in-career programmes and documentation will include specific guidance as to how the new currency can be appropriately included.
In the case of Certificate Examinations in relevant subjects and topics, it is expected that the euro will be the basis for all examinations from June 2002 onwards. Formal notice will be provided to schools, colleges and teachers at least two academic years before the appropriate exams, to allow for any necessary changes in their teaching plans and programmes.
In respect of non-examination programmes, such as Transition Year, teachers are encouraged to incorporate the new currency into relevant areas and to use the changes to highlight the increased European dimension evidenced by the new arrangements.
In general, it is suggested that the school authorities should consider putting the euro on the agenda of staff, and other appropriate meetings, for information, discussion and planning purposes.
Textbooks
It is not anticipated that, in general, there will be any need for new editions of textbooks solely on foot of the new currency. Where programmes need to be updated, it is planned that the guidelines refered to earlier will be sufficiently comprehensive to allow current
books to be utilised by teachers and students.
Road to the Euro
| 1951 |
The Treaty of Paris initiated the drive towards greater integration in Europe by setting up the European Coal and Steel Community which brought the coal and steel industries of Belgium, France, Germany, the Netherlands, Italy, and Luxembourg under a single controlling body. |
| 1957 |
The Treaty of Rome set up the Common Market which aimed to increase trade between member states and to develop and implement common economic policies. |
| 1979 |
The European Monetary System was set up to help facilitate a stable exchange rate environment. |
| 1987 |
The Single European Act provided for the free movement of capital, labour, goods and services. |
| 1992 |
The Maastricht Treaty sets out, inter alia, a timescale for the completion of full monetary union, including a single currency, the euro. |
Three Stages to EMU
| Stage 1 |
Completion of the EU's Single Market and closer co-ordination of economic policies. |
| Stage 2 |
Began on 1st January, 1994 and involved intensified co-ordination of economic policies e.g. monitoring of budgetary performance of Member States. This stage saw the establishment of the European Monetary Institute, the forerunner of the European Central Bank. |
| Stage 3 |
Begins on 1st January 1999, when the euro will come into being. |
The EMU Criteria
Member states which qualified to join the euro had to meet a number of criteria. In summary, these limit the extent of government borrowing and the level of government debt and require low inflation and monetary stability.
Timetable for Introduction of the Euro
| May 1998 |
The 11 participating member states were confirmed and the bilateral exchange rates between their currencies to apply from 1st January, 1999 were announced.
The European Central Bank was established in June 1998 and has begun the process
towards a single monetary policy. |
| 1st January 1999 |
The euro will come into being and the conversion rates will be irrevocably fixed between the participating currencies and the euro. From then, it will be possible to carry out non-cash transactions in euro. Irish pound notes and coins will continue in circulation. |
| 1st January 2002 |
Euro notes and coins will be put into circulation and Irish pound notes and coins will begin to be withdrawn. |
| 1st July 2002 |
At the latest (and probably a good deal earlier) the changeover to the euro will be complete. |
The Design of Euro Notes and Coins
Designs for euro notes (which are common for all participating states) were chosen following an EU-wide design competition, based on the theme "Ages and Styles of Europe", reflecting Europe's cultural heritage. Windows and gateways will be the main elements of the obverse faces of each banknote. The reverse faces will bear the representations of bridges typical of different
ages of European development. The notes will also carry the word euro in both the Latin and Greek alphabets, the initials of the European Central Bank (ECB) in five variants, and the signature of the President of the ECB.
The coins will have a European face and a national face. The designs for the European
face were chosen following an EU-wide design competition while the Irish face was the result of a competition, conducted by the Central Bank of Ireland.
The European face represents the EU in a range of forms: the 1, 2 and 5 cent coins
show Europe situated in the world, the 10, 20 and 50 cent coins show Europe as a collection
of nations, and the 1 and 2 euro coins show the EU without borders. The Irish face for all eight coins shows the 12 stars of the EU flag , the year, the harp, and the word "Éire".
Additional Information Sources:
The Euro Changeover Board of Ireland
15 Lower Hatch Street,
Dublin 2.
Tel: 01-639 6200.
Fax: 01-639 6201
LoCall: 1890 20 10 50
Web site: www.euro.ie
In-career Development Unit (ICDU),
Department of Education and Science,
Floor 3,
Hawkins House,
Dublin 2.
Tel: 01-809 5018
Fax: 01-878 8612
National Council for Curriculum and Assessment (NCCA)
24 Merrion Square,
Dublin 2.
Tel: 01-661 7177/8
Fax: 01-661 7180
Acknowledgments
This information document was prepared by the Department of Education and Science and the National Council for Curriculum and Assessment with the assistance of primary and postprimary
teachers and with the financial support of the Euro Changeover Board of Ireland and the European Commission.
