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20 years of the euro in your pocket

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Twenty years ago, on 1 January 2002, twelve EU countries changed their national currency banknotes and coins for the euro in the largest currency changeover in history. In these two decades, the euro has contributed to the stability, competitiveness and prosperity of European economies. Most importantly, it has improved the lives of citizens and made it easier to do business across Europe and beyond. With the euro in your pocket, saving, investing, travelling and doing business became much easier.

The euro is a symbol of EU integration and identity. Today, more than 340 million people use it across 19 EU countries, with 27.6 billion euro banknotes in circulation for a value of about €1.5 trillion. The euro is currently the second most widely used currency in the world behind the US dollar.

As it celebrates this 20th anniversary, the EU continues the work to strengthen the international role of the euro and adapt it to new challenges, including the rapid digitalisation of the economy and the development of virtual currencies. As a complement to cash, a digital euro would support a well-integrated payments sector and would offer greater choice to consumers and businesses.

Ursula von der Leyen, President of the European Commission, said: “It is now twenty years that we, European people, can carry Europe in our pockets. The euro is not just one of the most powerful currencies in the world. It is, first and foremost, a symbol of European unity. Euro banknotes have bridges on one side and a door on the other – because this is what the euro stands for. The euro is also the currency of the future, and in the coming years it will become a digital currency too. The euro also reflects our values. The world we want to live in. It is the global currency for sustainable investments. We can all be proud of that.”

David Sassoli, President of the European Parliament, said: “The euro is the embodiment of an ambitious political project to promote peace and integration within the European Union. But the euro is also a condition for protecting and relaunching the European economic, social, and political model in the face of the transformations of our time. The euro is a symbol, the coming to fruition of a historic political vision, an ancient vision of a united continent with a single currency for a single market.”

Charles Michel, President of the European Council, said: “The euro has come a long way — it’s a true European achievement. I would even say the euro has become part of who we are. And how we see ourselves as Europeans. Part of our mind-set. And part of our European spirit. The euro belongs to all of us all European citizens. But it isn’t just a success within our EU borders. It has also anchored itself on the international stage. Despite the crises, the euro has proven to be resilient — a symbol of European unity and stability. And never has that been truer than during COVID-19. The euro has served as a bedrock of stability. A stable asset for the Union. The euro also fuels our recovery. Unlocking the full potential of sustainable development, quality jobs, and innovation.”

Christine Lagarde, President of the European Central Bank, said: “The euros we hold in our hands have become a beacon of stability and solidity around the world. Hundreds of millions of Europeans trust it and transact with it every day. It is the second most international currency in the world. As European Central Bank President, I commit we will continue to work hard to make sure that we maintain price stability. And I also pledge that we will renew the face of those banknotes and that we will give them the digital dimension as well.”

Paschal Donohoe, President of the Eurogroup, said: “The euro has proven its mettle in dealing with great economic challenges. In particular, our response to the COVID 19 pandemic demonstrated that by sharing the euro we can achieve more collectively than we can individually. The euro has strengthened its foundations over the last 20 years. Now, we need to build on those foundations to make the euro the global currency for transitioning to a lower carbon future.”

A long journey

The euro has come a long way from the early discussions on an Economic and Monetary Union in the late 1960s. Specific steps towards a single currency were first approached in 1988 by the Delors Committee. In 1992, the Maastricht Treaty marked a decisive moment in the move towards the euro, as political leaders signed on the criteria that Member States had to meet to adopt the single currency. Two years later, the European Monetary Institute (EMI) started its preparatory work in Frankfurt for the European Central Bank (ECB) to assume its responsibility for monetary policy in the euro area. As a result, on 1 June 1998, the ECB became operational.

In 1999, the euro was launched in 11 Member States as an accounting currency on financial markets and used for electronic payments. It was finally on 1 January 2002 when Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain swapped their national notes and coins for euros. Slovenia joined the euro area in 2007, followed by Cyprus and Malta (2008), Slovakia (2009), Estonia (2011), Latvia (2014) and Lithuania (2015). Currently, Croatia is taking the preparatory steps to join the euro area, which it plans to do on 1 January 2023, provided it fulfils all the convergence criteria.

Twenty years of benefits for citizens and businesses

The euro has brought many benefits to Europe, especially to its citizens and businesses. The single currency has helped to keep prices stable and protected the euro area economies from exchange rate volatility. This has made it easier for European home buyers, businesses and governments to borrow money and has encouraged trade within Europe and beyond. The euro has also eliminated the need for currency exchange and has lowered the costs of transferring money, making travelling and moving to another country to work, study or retire simpler.

A large majority of Europeans support the single currency. According to the latest Eurobarometer, 78% of citizens across the euro area believe the euro is good for the EU.

A strengthened international role

The euro is the second most important currency in the international monetary system. Its stability and credibility has made it an international invoicing currency, a store of value and a reserve currency, accounting for around 20% of foreign exchange reserves. Sixty other countries and territories around the world, home to some 175 million people, have chosen to use the euro as their currency or to peg their own currency to it. Today, the euro is used for almost 40% of global cross-border payments and for more than half the EU’s exports.

Since the global financial crisis of 2008 and the subsequent sovereign debt crisis, the EU has continued to strengthen and deepen the Economic and Monetary Union. The EU’s unprecedented recovery plan NextGenerationEU will further improve the euro-area’s economic resilience and enhance economic convergence. The issuance of high-quality-denominated bonds under NextGenerationEU will add significant depth and liquidity to the EU’s capital markets and make them and the euro more attractive for investors. The euro is also now the leading currency for green investment: half of the world’s green bonds are denominated in euros, and this figure is rising thanks to the new green bonds issued to finance NextGenerationEU.

To further develop the international role of the euro, the Commission has launched outreach initiatives to promote euro denominated investments, facilitate the use of the euro as an invoicing and denomination currency, and foster a better understanding of the obstacles for its wider use. This outreach will take the form of dialogues, workshops and surveys with the public and private sector, financial regulatory agencies, and institutional investors in regional and global partner countries of the EU.

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African nations leading the way on ‘food systems transformation’

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African countries are at the vanguard of a vital transformation of food systems to simultaneously address food security, nutrition, social and environmental protection – all while boosting resilience – said the UN chief on Thursday. 

António Guterres was addressing the start of a high-level policy dialogue at UN Headquarters in New York, part of the Africa Dialogue Series 2022, convened to strengthen resilience in food supplies across the continent, at a time when “decades of progress on hunger are being reversed.” 

Deep connections 

He said for too long, nutrition, food security, conflicts, climate change, ecosystems and health have been treated as separate concerns, “but these global challenges are deeply interconnected. Conflict creates hunger. The climate crisis amplifies conflict”, and systemic problems are just getting worse. 

He noted that after more than a decade of improvements, one in five Africans were undernourished in 2020, while 61 million African children are affected by stunting. Women and girls bear the brunt, and when food is scarce, “they are often the last to eat; and the first to be taken out of school and forced into work or marriage.” 

Mr. Guterres said that UN humanitarians and partners were doing their utmost to meet Africa’s needs amidst crisis, but aid “cannot compete with the systemic drivers of hunger.” 

Other “external shocks” were exacerbating the situation, such as an uneven recovery from the pandemic and the war in Ukraine, with African countries among the most heavily impacted by grain shortages and rising debt.  

Climate crisis frontline 

Building resilience also requires addressing the climate crisis. 

African farmers are on the frontlines of our warming planet, from rising temperatures to droughts and floods,” he said. 

“Africa needs a massive boost in technical and financial support to adapt to the impact of the climate emergency and provide renewable electricity across the continent.” 

He added that developed countries must deliver on their $100 billion climate finance commitment to developing countries, with the help of international financial institutions, so African countries, in particular, can invest in a strong recovery from the COVID-19 pandemic, on the tide of renewable energy.  

Food systems, said the Secretary-General, “connect all these challenges”, as highlighted at last September’s UN Food Systems Summit

“Many African Member States led the call for fundamental change, through inclusive transformation pathways, which aim to address – simultaneously – food security, nutrition, social protection, environmental conservation and resilience to shocks.” 

He welcomed the African Union (AU) decision to designate 2022 as the Year of Nutrition – a pledge to act on the strong commitments made at the Summit. 

Collective expertise 

“Through national, regional and global cooperation, we must build on lessons learned and harness collective expertise. Together, we must deliver on these pathways”, Mr. Guterres added. 

The international community must rise to the occasion”, he declared, adding that scaling back support when demand is at an all-time high, was “not an option.” 

Official Development Assistance, or ODA, based on a percentage of available public funds, is more necessary than ever, he said. 

“I urge all countries to demonstrate solidarity, invest in resilience, and prevent the current crisis from escalating further.” 

The UN chief said that during his recent visit to Senegal, Niger, and Nigeria, he had been inspired by the resilience and determination of the people he met. 

“Women and young people in particular were committed to lasting, sustainable solutions that enable them to live in peace with their neighbours and with nature.” 

If we work together, if we put people and planet before profit, we can transform food systems, deliver on the Sustainable Development Goals (SDGs) and leave no one behind.” 

The ambitious goals, he concluded, of ending hunger and malnutrition by the fast-approaching 2030 deadline, were realistic, and achievable. 

“The United Nations stands by your side, every step of the way.” 

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UNICEF urges leaders to keep schools safe following deadly Texas shooting

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Governments must take greater action to ensure school remains a safe place for boys and girls, the head of the UN children’s agency, UNICEF, said on Wednesday, following the latest deadly school shooting in the United States. 

At least 19 children and two teachers were killed on Tuesday when 18-year-old gunman Salvador Ramos opened fire at Robb Elementary School in the small city of Uvalde, Texas, located near the border with Mexico. 

How many more? 

Catherine Russell, UNICEF’s Executive Director, said there have already been “horrific attacks” this year on schools in Afghanistan, Ukraine, the US, West Africa and beyond. 

“Tragedy after tragedy, shooting after shooting, young life after young life: how many more children will die before government leaders act to keep children and their schools safe? Because until they do, these horrors will continue,” she said in a statement. 

Ms. Russell emphasized that outside of their homes, school is the one place where children should feel safest. 

She noted that in addition to the lives lost, “many more children, teachers and school staff who witnessed the carnage will bear the emotional and psychological scars for the rest of their lives.” 

Shock and sadness 

UN Secretary-General António Guterres was deeply shocked and saddened by “the heinous mass shooting”, saying it was particularly heart-wrenching that most of the victims are children.  

Mr. Guterres has extended his heartfelt condolences to the families and loved ones of the victims and to the entire community, his Spokesperson said in a statement issued on Tuesday. 

UN Deputy Secretary-General Amina Mohammed expressed her outrage in a post on Twitter. 

“When children go to school, they should only be concerned about learning,” she wrote.  “Children should not go to school fearing for their lives!” 

Ms. Mohammed said her heartfelt prayers are with the families, classmates and teachers who are mourning this “devastating loss”. 

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Zimbabwean peacekeeper selected as UN Military Gender Advocate of the Year 2021 Award

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Following reports of sexual and gender-based violence against women collecting firewood in Rubkona, South Sudan, Captain Irene Wilson Muro and and Major Winnet Zharare (2nd from the right) reached out to local women to discuss ways to stem the abuse. Photo: UNMISS

A Zimbabwean peacekeeper who recently completed her assignment with the UN Mission in South Sudan, will receive the 2021 United Nations Military Gender Advocate of the Year Award. 

Military Observer Major Winnet Zharare, 39, served in Bentiu, South Sudan in 2021-2022, and will receive the award from the Secretary-General António Guterres during a ceremony marking the International Day of UN Peacekeepers on Thursday, 26 May 2022.

Created in 2016, the United Nations “Military Gender Advocate of the Year Award” recognizes the dedication and efforts of an individual military peacekeeper in promoting the principles of UN Security Resolution 1325 on Women, Peace and Security, as nominated by Heads and Force Commanders of UN peace operations.

Secretary-General António Guterres commended Major Winnet for her award. “Major Zharare is a role model and a trailblazer. Through her service, she has demonstrated the invaluable role that women play in building trust, advocating for change and forging peace,” he said. “Her example shows how we will all gain with more women at the decision-making table and gender parity in peace operations,” Mr. Guterres added. 

Major Zharare expressed her gratitude and pride in receiving  the award which, she said, “motivated [her] to maintain [her] course towards gender equality.”

“My parents gave us equal opportunities with my brothers, so I believe that equal opportunities should be given to both men and women in all aspects of life,” she added.

Major Winnet Zharare deployed to UNMISS in November 2020. Throughout her 17-month-long service, she advocated for gender parity and women’s participation, within her own ranks, among local military counterparts, and in host communities.

As the Chief Military Information Officer in UNMISS’  Bentiu field office, she helped ensure that patrols included both women and men to improve protection efforts as well as build trust between host communities and the Mission. Her efforts also contributed to an increase in  gender-aggregated data so that issues raised by local women and girls would gain appropriate attention.

Advocating for gender parity and womens’ participation in an environment where they are traditionally excluded from decision-making, she encouraged local civilian and military authorities and community representatives to involve both men and women in meetings with the UN. Her diligence and diplomatic skills quickly gained her the trust of local military commanders who would systematically reach out to her on issues pertaining to women’s protection and rights. During her patrols and numerous community engagement initiatives, Major Zharare also successfully encouraged men and women to work together in farming and in the construction of dikes around Bentiu town to alleviate food shortages and prevent further displacement.

Major Zharare is the first Zimbabwean peacekeeper to receive this prestigious award.

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