Euro is the basic unit of currency of the member states that are the participant of European Union (EU).

It was in 1999 when European Union first introduced euro in the financial community, and then in 2002 the coins and paper notes of that currency emerged. ESCB or European System of Central Banks prints and manages this currency. “EUR” is the symbol that represents and abbreviates euro.

According to Investopedia, the currency which member states of European Union (EU) use for trade is known as euro. These countries include Spain, Portugal, Luxemburg, Holland, Ireland, Italy, Germany, Greece, Finland, France, Belgium and Austria. These countries have created a Eurozone in which euro is used as the common currency of all the participating nations of the European Union.

Euro has proved quite beneficial to improve trade and financial ties among the different European countries, as it allows them to trade freely without the fears and risks involved in exchange rates.  But some experts also seem to criticize this currency system, and they believe that it bringing negative consequences like contraction of power to European Central Bank in setting monetary policy and this factor doesn’t allow the European nations to implement monetary policy particular to their specific country. And similarly, it forces them to follow the monetary police that the entire Eurozone establishes for itself.

ECU or European Currency Unit was replaced by the Euro and it was on 1st of January 2002 when euro paper notes and coins came into circulation and replaced all the currencies of the European Union member states.

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