BRUSSELS, Belgium, Dec. 31 -- The European Commission has proposed the official rates for the euro, which on New Year's Day becomes the common currency of most of the 15-member European Union. The commission announced today that one euro will be worth: 6.55957 French franc 1.95583 deutschmarks 1936.27 Italian lira 40.3399 Belgium (and Luxembourg) franc 166.386 Spanish pesetas 0.787564 Irish punts 2.20371 Dutch guilders 13.7603 Austrian schillings 200.482 Portuguese escudos 5.94573 Finnish markas There are 11 countries joining the monetary union, but only 10 currencies, because Luxembourg and Belgium already have a currency union.
Except for the change of name and the promise of real money in two years, the euro will replace the ECU on a one-to-one basis. At present, the ECU or 'synthetic euro' equals about $1.12. On New Year's Day, the euro will be launched in 11 countries for non- cash transactions alongside national currencies. On Jan. 1, 2002, euro bills and coins will be issued alongside national currencies. On July 1, 2002, national currencies of the 11 participating countries will be withdrawn as legal tender. Britain is staying out, while Sweden and Denmark want to wait and see. Greece needs to do more to fix its ailing economy before it can qualify to join. Although the euro does not become cash until January 2002 -- it will be good in the interim only for banking, credit card transactions and trade -- no one doubts the three intervening years will be a trying dress rehearsal for the real thing, already designed for minting and ready to roll into the shops. ---
Copyright 1998 by United Press International. All rights reserved. ---
