The Single Currency 

The euro came into being on 1 January 1999. On the previous day, acting under Article 109 L(4) of the Treaty, ECOFIN by adopting Regulation EC No 2866/98 (OJ L 359) irrevocably fixed the conversion rates to apply between the currencies of the Member States participating in EMU and the euro. 

ECOFIN Ministers had announced in May 1998 that the current ERM bilateral central rates of the currencies of the Member States which will adopt the euro as their single currency on 1 January 1999 will be used in determining their irrevocable conversion rates against the euro. The aim of this announcement was to assist financial market stability in the run-up to the start of EMU.  

On 14 March 1998, the ERM central rate of the Irish pound was revalued by 3 per cent. This was done in the light of our expected participation in EMU from 1 January 1999 and with a view to helping to ensure that Ireland's economic success continues in a balanced and sustainable way.  

Since 1 January 1999 the euro is useable in cashless form (e.g. cheques, direct debits, credit transfers) but euro notes and coins are not yet available, so Irish pound notes and coins will continue in circulation. On 1 January 2002, euro notes and coins will be introduced into circulation and the withdrawal of Irish pound notes and coins will begin: within six months at most (probably a great deal less), Irish pound notes and coins will cease to be legal tender and the changeover to the euro will be complete.