PRINCIPAL QUESTIONS ASKED BY THE CHILDREN
The following topics represent a synthesis of the principal questions asked by schoolchildren (average age 12 years) during a project on the awareness of the euro conducted by Euroconsult Monaco and Pearl-Online at the Antony Fabre Elementary School in Villeneuve-Loubet, Alpes Martimes, France during the month of April 1998.
1. Value of the euro
(a) How much is a euro worth? Why?
2. Introduction of the euro
(a) How and when will we change from the franc to the euro ?
(b) How will information on the euro be given ?
(c) Which countries will participate in the euro? Which countries
refuse to participate?
(d) What measures will be taken to avoid disruption in the participating
countries ?
(e) Will all the countries introduce the euro at the same time?
(f) What will happen to the franc?
(g) Who will issue the euro?
(h) Will there be false euro ?
3. Coins and bank notes
(a) What will the coins and bank notes be like? Number, look,
metal?
(b) What designs will be on the bank notes?
4. Origin of the euro
(a) How was money created ?
(b) Who authorises the issue of the currency ?
(c) Why was the euro invented ?
(d) Who invented the euro? Where does the name come from?
5. Practical aspects
(a) What will be the impact on our life? What will change? Will
there be less unemployment ?
(b) What will be the obligations of shopkeepers? Of banks?
(c) Will the euro be used in the overseas Departements and
Territories ?
(d) Will one be able to change euro everywhere ?
(e) What will happen to bank accounts? To credit cards?
(f) What will happen to machines which operate with coins? (vending
machines, motorway tolls)
(g) Will there be calculators to convert into euro ?
(h) Why are euro already made today (Leclerc supermarkets)? Do
they have a value?
6. Economic impact of the euro
(a) What will be the impact of the euro in the world?
(b) What will be the advantages of the euro ?
(c) Will the euro be stronger than the dollar ?
(a) How much is a euro worth? Why?
The euro would be worth approximately FRF 6.60 today, based on the current value of the ECU (the basket of twelve European currencies). The ECU will become the euro on January 1, 1999. Since the ECU contains three currencies which will not be part of the euro from the beginning - in particular the British pound - we will not know the final conversion rate between the franc and the euro until January 1, 1999. However, this should not differ materially from the current rate versus the ECU.
(a) How and when will we change from the franc to the euro?
On January 1, 1999 the euro will become the official currency of the participating countries - in scriptural form. As from January 1, 2002 the physical or fiduciary money (bank notes and coins) will be introduced. As from January 1, 1999 the euro will be used for a major proportion of commercial transactions as well as by supermarkets etc.
The programme for the introduction of the euro has already been announced (see
2(a) above). Additional details will be given within the framework of information
campaigns.
There are eleven countries which will participate in the euro as from January
1, 1999: Germany, France, Italy, Spain, The Netherlands, Belgium, Austria, Finland,
Portugal, Ireland and Luxembourg. Greece is not qualified to participate for
the moment, but aims to join the single currency in 2001. The United Kingdom,
Denmark and Sweden have declined to join for the time being, but their participation
is expected within a few years.
A transition period of three years is foreseen for the introduction of the euro, i.e. from 1999 to 2001. During this period one has the right to use either the euro or the national currencies, even if, in practice, the changeover to the euro will probably be faster than one may imagine today.
The eleven participating countries will introduce the euro at exactly the same
time.
As from January 1, 1999 the French franc will no longer be a currency, but simply
a temporary denomination of the euro. Franc bank notes and coins will nevertheless
continue to circulate until June 30, 2002, on which date they will be definitively
withdrawn from circulation.
The bank notes will be issued by the European Central Bank in co-operation with
the national central banks of the participating countries. The coins will be
issued by the governments of the participating countries. Naturally, there will
be co-ordination between the various issuing authorities.
One hopes not! Unfortunately, particularly during the preliminary phase following
the introduction of coins and bank notes, there may possibly be some cases of
false euro. On the other hand, the technology used in the production of bank
notes and coins make the counterfeiting of money increasingly difficult.
There will be seven bank notes in denominations of 5, 10, 20, 50, 100, 200 and
500 euro. As designs, these bank notes will show examples of European architecture
throughout the centuries. The bank notes will not bear any national symbol.
There will be eight coins: 1, 2, 5, 10, 20 and 50 cents and 1 and 2 euro. The
small coins will be in copper and the medium coins in nickel, whilst the 1 and
2 euro coins will be bimetallic, like the 10 and 20 franc coins are today. One
side of the coins will have a common design, whilst the other will bear a national
symbol .
European architecture throughout the centuries: bridges, arches, buildings,
which are all fictitious.
Money was created in order to facilitate the comparison of prices and also as a means of exchange for the transfer of products and services as well as a means for savings. Following the era of barter, money was issued by rulers, governments etc.
Today, it is above all the central banks which authorise the issue of currency.
The euro has been invented as a common currency for all the countries of the
European Union. The fact that we presently have 14 different currencies is an
obstacle to the free exchange of goods and services. With the single currency
we shall have a total transparency of prices throughout the large European single
market.
Ever since the establishment of the European Economic Community, the single
currency has been considered as the final phase of the attainment of economic
union in Europe. In 1968 there was the Werner Plan, which was not realised at
the time. The present single currency has its origins in the Delors Plan of
1989. According to the Treaty of Maastricht, the single currency should have
been called the "ECU". However, in December 1995 the members of the European
Council (heads of state and government) decided to rename it the "euro"..
For the consumer, there will no longer be a need to change money if he or she
visits another euro-zone country; furthermore the transparency of prices throughout
the large European single market will lead to a marked reduction in real prices
for many goods and services. The euro itself cannot eliminate unemployment,
which in fact is structural in nature. However, in view of the low rates of
inflation and interest which are stipulated in the charter of the European Central
Bank, unemployment should decline thanks to economic growth.
During the transition period from 1999 to 2001 shopkeepers must accept both
the national currencies and the euro. In their own interest they should, as
from 1999, mark all their prices both in euro and francs. The banks will give
the possibility of operating bank accounts either in euro or in French francs
prior to 2002, when all accounts shall be converted to euro obligatorily.
Yes, the euro will be introduced in the overseas Departements and Territories
as in Metropolitan France, with the exception of French Polynesia.
In view of the world role of the euro, one will be able to change euro everywhere in the world, as is the case today with the US dollar.
Bank accounts can be converted to euro as from 1999 or it will be possible to wait until the year 2002 to have them converted obligatorily. During the transition period, debits and credits in the other denomination will not result in bank charges. During the transition period credit cards can be used for payments either in the national currencies or in euro.
Machines operating with coins will have to be converted as soon as the new coins
are introduced, i.e. on January 1, 2002. The conversion of all the machines
which operate with coins in Europe will probably last for three months at most.
Machines operating with bank notes (for example, automatic teller machines)
will be converted much more quickly, since the conversion process is electronic
rather than mechanical.
Yes, there are already calculators for converting into euro, and many more will
certainly appear between now and January 1, 1999.
"False" euro have been made by, for example, Leclerc supermarkets solely with
the aim of familiarising the population with the fact that there will soon be
a new currency. Such "coins" have no value outside the establishments, which
issued them.
The euro will become one of the two most important currencies in the world.
It will certainly be as important as the US dollar, and this will allow us to
effect transactions with many third countries in our own currency instead of
using the US dollar, which is often the case today and which is very expensive
in terms of foreign exchange commissions.
The principal advantages of the euro will be the reduction in real prices resulting
from the competition arising from the transparency of prices as well as the
simplification of transactions everywhere in the single market which will be
effected in the same currency.
In the short term the relative strength or weakness of a currency is often due
to the level of interest rates resulting above all from the phase of the economic
cycle. In the long term, however, the euro has a good chance to become much
stronger than the US dollar, due to the fact that the European countries traditionally
have a surplus in their balance of trade, whilst the United States have a chronic
deficit.