Introduction to Finance

eurozone members
. Slovenia became a eurozone member in 2007, Cyprus 
and Malta joined in 2008, Slovakia joined in 2009 and Estonia became a member in 2011. 
Latvia was admitted as a eurozone member in 2014 and Lithuania joined in 2015 bringing 
total eurozone membership to 19 country states. 
The Euro
On January 1, 1999, the 
euro
became the offi
cial currency of 11 EMU members. Greece 
qualifi ed to adopt the euro in 2000 and was admitted in 2001. Euro coins and currency were 
introduced on January 1, 2002, and began replacing (phasing out) the national currencies of 
the 12 Eurozone members. Only the euro coins and currency were legal tender by July 2002. 
Designing the euro paper currency was a diffi
cult task. It could not include images (e.g., 
the Eiff el Tower) that could be associated with a single country. Likewise, portraits of indi-
viduals (e.g., royalty, military leaders) could not be used. Ultimately, the euro was designed to 
include “gates” and “windows” for the front of the bills “to symbolize the future”; “bridges” 
were chosen for the back of the bills. The paper currency uses multicolored ink, watermarks, 
and three-dimensional holographic images to thwart counterfeiting eff orts. Seven denomina-
tions, from 5 to 500 euros were issued.
European Union Financial Crises
CRISIS
The European Union suff ered many of the economic problems that the United States 
went through in the 2007–08 fi nancial crisis involving the fear of a worldwide fi nancial system 
collapse. However, while the United States was able to recover from its 2008–09 Great Reces-
sion, the economies of many European Union countries continue to face economic develop-
ment uncertainties and high levels of unemployment. Tax receipts often have been less than 
government expenditures in many of the EU countries, causing national debts to grow rapidly 
and resulting in some countries having diffi
culty paying interest due on their debts. 
Some EU countries have been forced into austerity government expenditure plans at 
a time of no economic growth and high unemployment, in some instances causing social 
unrest. Greece continues to experience the need to make diffi
cult economic trade-off s, and 
concerns exist as to whether the country will remain a eurozone member. Concern also has 
been expressed about the economic and fi nancial viability of Spain, Portugal, and Italy.