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Euro Notes and Coins Launched

Amidst the pro-euro celebrations the Governor of the Bank of England, Sir Edward George, caused some controversy. French Bank workers also threatened the euro's introduction in France.

A mixture of celebration, strikes, caution and deference marked the launch of euro notes and coins over the Christmas period. The first coins hit the streets on December 14^th 2001. Just days away from the introduction of the single currency (in cash form), which is now legal tender in 12 of the 15 European Union member states, euro coin starter packs were made available to allow shoppers to familiarise themselves with the new coins. Many people though soon had to go back to using their old and outgoing national currencies. Even so, and where possible, change is now given in euros within the euro zone.

As euro preparations gathered pace, the euro debate continued in Britain and was once again put to the top of the news’ agenda. Bank of England Governor, Sir Edward George, revealed his doubts over the benefits of any future U.K. membership of the euro in an interview with Deutsche Welle (21^st December 2001). He warned that a one-fits-all interest rate policy, which is one of the realities of Economic and Monetary Union (EMU), represents a “particular risk.”

BBC News Online reports that Sir Edward said: “The same monetary policy isn't necessarily the best for every country at the same time.” Although his remarks caused much controversy, the BBC have backed Sir Edward’s claim that there was nothing new about his comments. Indeed there was very little new about the wider euro debate over the festive period. Even BBC News 24 seeming overjoyed by the introduction of the single currency. On Euro Day, January 1^st 2002, very few of its reporters interviewed the euro’s opponents. British newspapers were more divided.

Sir Edward, speaking to the BBC’s Today programme a day after his interview with Deutsche Welle, revealed that any decision by the British Government to join the euro would not be an economic one but a political one. The Government has often claimed that any recommendation for joining the single currency would be made on purely economic grounds. Sir Edward’s view is supported by the earlier comments of senior Treasury official Gus O’ Donnell. Mr. O’Donnell is in charge of assessing Chancellor of the Exchequer Gordon Brown’s five economic tests.

Other than some lonely voices like that of New Labour eurosceptic Frank Field, who correctly argued that opposition to the euro is not simply a Conservative Party issue, not everyone greeted the euro with such scepticism. Pro-euro Britain in Europe, the Government backed lobbying organisation for British membership to the single currency, took centre stage on the streets and on many television news’ programmes. It was joined by an array of British euro supporters, including Minister for Europe Peter Hain MP and Digby Jones, Director General of the CBI, amongst others.

Mr. Hain described the announcement that some UK retail outlets would be accepting the new currency, even though Britain remains outside of the euro zone, as “a process of Britain coming to terms with the fact that the euro is here to stay.” He welcomed the news by declaring: “I want our shops and retail outlets to gain from the euro - as they have clearly decided they want to in order to remain competitive - rather than to lose out.” Meanwhile Simon Buckby, Britain in Europe’s campaign director, said that Britain’s membership of the euro was essential for the survival of thousands of British jobs and British competitiveness. Eurosceptics argue that it is the other way around.

To the glee of europhiles even the eurosceptical chairman of the Dixons Group, Sir Stanley Kalms, said that euros could be spent at Dixons. Sir Stanley defended his decision by arguing that there was nothing new about accepting foreign currency at his Group’s retail outlets. This, along with some other events, was clearly seen as evidence by pro-euro supporters that the “euro is here to stay.” They also argued that eurosceptics could no longer afford to bury their heads in the sand.

Euro realities though don’t come so easily. French bank workers went on strike and threatened the otherwise smooth introduction of the new currency. There was some aggravation, resentment and confusion within the Eurozone too. In Perpignan it was impossible to pay for even a parking space in euros. The local authorities had not yet changed the ticket machines to allow for the new currency. It was only possible to pay in the outgoing French franc, which by now many had exchanged for euros. EU Commission President Romano Prodi also made one euro-reality quite clear: the euro is a political project of European integration and not simply an economic one.

By Graham Jarvis MA

5^th January 2002
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For more about the emerging euro story, and media speculation over a date for a British euro referendum and a potential entry for Britain to join the single currency, please use the search criteria “euro” to find relevant stories on BBC News Online.

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