Software & Finance - Monthly Magazine Online

Volume 2 - Issue 7

July 2012

What is the Future for Euro?

Euro is the official curreny of Euro Zone. The symbol for Euro is: €.


27 member states are coming under European Union. Out of which 17 countries have come up with Euro Zone and they are listed below:


  1. Austria
  2. Belgium
  3. Cyprus
  4. Estonia
  5. Finland
  6. France
  7. Germany
  8. Greece
  9. Ireland
  10. Italy
  11. Luxembourg
  12. Malta
  13. Netherlands
  14. Portugal
  15. Slovakia
  16. Slovenia
  17. Spain

The 6 countries Andorra, Kosovo, Montenegro, Monaco, San Marino, and the Vatican City  are not part of EU members but they use Euro as their local currency.


The European Currency Unit (ECU) weightage as per 21-Sep-1989 through 31-Dec-1999 is given in the following table


ISO Currency Value Weight (%)
 DEM   German Marks   0.6242  31.915
 FRF   French Francs   1.332  20.306
 GBP   British Pounds   0.08784  12.452
 NLG   Dutch Guilders   0.2198  9.87
 BEF   Belgian Francs   3.301  8.183
 ITL   Italian Lira   151.8  7.84
 ESP   Spanish Peseta   6.885  4.138
 DKK   Danish Krones   0.1976  2.653
 IEP   Irish Punts   0.008552  1.086
 PTE   Portugese Escudos   1.393  0.695
 GRD   Greek Drachmas   1.44  0.437
 LUF   Luxembourg Francs   0.13  0.322


Germany, France, UK, Netherlands and Belgium are contributing more than 80% to ECU. Currently the sovereign-debt crisis happening on Greece, Ireland, Portugal, Spain and Cyprus. The effect on Euro Zone currency from these problematic countries are less. The powerful nations such as Germany, France, UK, etc needs to give bail out package to the suffering nations to save the Euro. But if the problem may spread to other countries such as Itlay and Belgium, etc, then future of Euro would be a big question mark. If this problem continues, then powerful nations will dominate and make the suffering nations to go default. Hence powerful nations can keep their local curreny stable by ignoring Euro. The Euro Zone crisis would be very severe than people might think off. Since other countries such as USA, China, etc have heavily invested in Europe. Currently there is no surprise if Euro would not exist in the future!