Question

11. (Euro) Review the history of Euro since 1960s. Answer the following questions: (1)How was the Euro created? (2)When did Euro become the official currency? (3) Number of countries in the Euro-zone (4) Criteria for joining the Euro-zone.

Answer 1

1) Euro was created by the agreement signed in 1992. The name of the treaty was Maastricht Treaty. It was done to ensure free movement of goods, peoples and sevices.

2) On January 1, 1999, Euro becomes the official currency of 11 member states.

3) There are presently 19 countries which are member of eurozone.

4) Criteria is defined as follow:

a) Government deficit must not exceed 3% of GDP

b) Gross government debt must not exceed 60% of GDP

c) Excahnge rate stability for atleast 2 years