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The euro - the EU single currency

Latest news about the European Union's single currency.

Treatment of Toxic Assets in the European Community Banking Sector - briefing 26 February 2009, 18:01 CET
The European Commission has provided guidance on the treatment of asset relief measures by EU Member States. Impaired assets correspond to categories of assets on which banks are likely to incur losses (e.g. US sub-prime mortgage backed securities). The Commission considers that a common European approach is presently needed to deal with the treatment of impaired assets, to make sure that foreseeable losses are disclosed and properly handled and banks can use their capital to resume their normal function of lending to the economy instead of fearing they would need this capital to cushion against possible losses. The Commission's Communication outlines various methods to deal with impaired assets, notably through asset purchase (including bad bank scenarios) or asset insurance schemes. It explains the budgetary and regulatory implications of asset relief measures and presents details concerning the application of the State aid rules to such measures. In particular, the guidance provides methodologies concerning the valuation of the impaired assets, the necessary remuneration of the State for the asset relief and the procedural steps that will be followed as well as the criteria that will be used to evaluate the State aid given to the banks as a result.

EC guidance for the treatment of toxic assets in the EU banking sector 26 February 2009, 00:09 CET
The European Commission has provided guidance on the treatment of asset relief measures by EU Member States. Impaired or 'toxic' assets correspond to categories of assets on which banks are likely to incur losses (e.g. US sub-prime mortgage backed securities). The Commission considers that a common European approach is presently needed to deal with the treatment of impaired assets, to make sure that foreseeable losses are disclosed and properly handled and banks can use their capital to resume their normal function of lending to the economy instead of fearing they would need this capital to cushion against possible losses. The Commission's Communication outlines various methods to deal with impaired assets, notably through asset purchase (including bad bank scenarios) or asset insurance schemes. It explains the budgetary and regulatory implications of asset relief measures and presents details concerning the application of the State aid rules to such measures. In particular, the guidance provides methodologies concerning the valuation of the impaired assets, the necessary remuneration of the State for the asset relief and the procedural steps that will be followed as well as the criteria that will be used to evaluate the State aid given to the banks as a result.

Bank account switching 08 December 2008, 20:14 CET
In its staff working document on the initiatives in the area of retail financial services, accompanying the Communication A single market for 21st century Europe, COM(2007)724 final, the European Commission invited the EU banking industry to develop a switching service to be offered by banks of all Member States to consumers who wish to switch their bank account from one bank to another at national level. In response to this invitation, the European Banking Industry Committee (EBIC) has adopted its Common Principles for Bank Account Switching.

Cross-border euro payments - briefing 16 October 2008, 01:39 CET
The European Commission has put forward a proposal modifying the provisions and extending the scope of the 2001 Regulation on cross-border euro payments, under which cross-border bank transfers in euro within the EU cost the same as domestic transfers. The proposal comes in response to the rapid evolution of the EU payments market. It aims at extending the principle of equality of charges to direct debit payments. It also contains some provisions enhancing the protection of consumer interests and rights and alleviating the statistical reporting burden.

Revision of EU rules on Deposit Guarantee Schemes - briefing 16 October 2008, 01:34 CET
The European Commission has put forward a revision of EU rules on deposit guarantee schemes that puts into action the commitments made by EU Finance Ministers on 7 October. The new rules are designed to improve depositor protection and to maintain the confidence of depositors in the financial safety net. Under the new rules, the minimum level of coverage for deposits will be increased within one year from €20,000 to €100,000, and initially to €50,000 in the intervening period. Individual Member States can choose to add to these minimum levels. In addition, the payout period in the event of bank failure will be reduced from three months to three days. The proposal now passes to the European Parliament and the Council of Ministers for consideration.

Commission guidance on state aid for banks in crisis - briefing 13 October 2008, 20:32 CET
The European Commission has published guidance on how EU Member States can best support financial institutions in the current financial crisis whilst respecting EU state aid rules and so avoiding excessive distortions of competition. The guidance is based in particular on EC Treaty rules allowing for aid to remedy a serious disturbance in the economy of a Member State (Article 87.3.b of the EC Treaty). The guidance will help Member States to put in place coordinated concrete measures to restore confidence in financial markets in accordance with the 12th October Eurogroup declaration. EU state aid rules require that measures taken do not give rise to disproportionate distortions of competition, for example by discriminating against financial institutions based in other Member States and/or allowing beneficiary banks to unfairly attract new additional business solely as a result of the government support. Other requirements include that measures must be limited in time and foresee adequate contributions from the private sector. The Commission will aim to approve schemes that comply with this guidance very quickly (within 24 hours, if possible).

EU finance ministers (Ecofin): Europe's immediate responses to financial turmoil 08 October 2008, 00:01 CET
The Council of European Union Finance Ministers (ECOFIN) today adopted conclusions on the immediate responses to take to the financial crisis, along with four statements on the following subjects: financial stability and financial supervision, a coordinated EU response to the economic slowdown, executive pay, and the fight against tax fraud.

Capital Requirements Directive - briefing 02 October 2008, 22:38 CET
The European Commission has put forward a revision of EU rules on capital requirements for banks that is designed to reinforce the stability of the financial system, reduce risk exposure and improve supervision of banks that operate in more than one EU country. Under the new rules, banks will be restricted in lending beyond a certain limit to any one party, while national supervisory authorities will have a better overview of the activities of cross-border banking groups. The proposal, which amends the existing Capital Requirements Directives, reflects extensive consultation with international partners, Member States and industry. It now passes to the European Parliament and the Council of Ministers for consideration.

Review of the international role of the euro 10 July 2008, 22:26 CET
The European Central Bank (ECB) published on 9 July 2008 its "Review of the international role of the euro", focusing on developments during the year 2007.

Financial inclusion - guide 29 May 2008, 00:52 CET
The study “Financial Services Provision and Prevention of Financial Exclusion”, prepared for the European Commission, aims at identifying and analysing the most effective policy measures to prevent financial exclusion of people facing poverty or social exclusion.

2008 Convergence Report of the European Commission 07 May 2008, 17:56 CET
The European Commission concluded on 7 May 2008 that Slovakia meets the criteria for adopting the euro and made a proposal to the Council to this effect. The regular Convergence Report on euro readiness, adopted by the Commission, shows that the other nine countries with a so-called 'derogation' have made progress on the road to the single currency, but do not yet meet all the conditions for euro adoption. The Council of EU finance ministers (ECOFIN) will take the final decision on the adoption of the euro in Slovakia in July, after Parliament has given its opinion and EU heads of state and government have discussed the subject at their summit meeting in June.

EMU and the euro - guide 07 May 2008, 16:50 CET
The euro is a resounding success, says the European Commission today. The protection provided by an international currency with a market of nearly 320 million people, supported by sound public finances and stable macroeconomic policies, is particularly welcome in these times of uncertainty and worrying increases in the prices of energy and food. But as we complete 10 years of Economic and Monetary Union (EMU), the Commission says we must acknowledge that there is still work to be done. The euro area’s governance and coordination of economic policies must be improved. This will involve both deepening and broadening economic surveillance arrangements to guide fiscal policy over the cycle and in the long term and, at the same time, address divergences in growth, inflation and competitiveness. We also need to better project our voice in the global arena, to reflect the euro’s weight as an international currency used well beyond its borders. Only then will the benefits of the single currency become fully apparent to the citizens of the euro area.

Towards EMU@10 - Research resources 02 May 2008, 18:35 CET
This umbrella project embraces a wide array of research activities to mark 10 years of Economic and Monetary Union (EMU). In May 2008, it will be 10 years since the final decision in May 1998 to move to the third and final stage of EMU - together with the decision on which Member States would participate – followed by the launch of the euro on 1 January 1999. The project has three dimensions: assessing the economic achievements of the euro area’s first decade; identifying current and future challenges; and developing policy proposals in response to those challenges.

Commission investigation into UK restructuring aid package for Northern Rock - guide 02 April 2008, 11:18 CET
The European Commission on 2 April 2008 launched an in-depth investigation under the EC Treaty’s rules on state aid into the UK authorities' package of measures to support the restructuring of Northern Rock, the UK mortgage bank. The Commission received the notification of these measures on 17th March 2008. The opening of an in-depth investigation gives interested parties the possibility to comment on the proposed measures but it does not prejudge the outcome.

The United Kingdom and the euro 04 February 2008, 01:05 CET
The United Kingdom joined the European Union in 1973. It has negotiated an 'opt-out' from the euro and is thus not obliged to introduce it.

Sweden and the euro 04 February 2008, 01:02 CET
Sweden joined the European Union in 1995 and has not yet adopted the euro, but in accordance with the Treaty it will do so once it meets the necessary conditions.

Finland and the euro 04 February 2008, 00:54 CET
Finland joined the European Union in 1995 and was one of the first-wave EU countries to adopt the euro on 1 January 1999.

Slovakia and the euro 04 February 2008, 00:49 CET
Slovakia joined the European Union in 2004 and has aspirations to adopt the euro in 2009.

Slovenia and the euro 04 February 2008, 00:46 CET
Slovenia joined the European Union in 2004 and, on 1 January 2007, became the first of the new EU countries to adopt the euro.

Romania and the euro 04 February 2008, 00:41 CET
Romania joined the European Union on 1 January 2007 and has committed to adopt the euro once it fulfils the necessary conditions.

Portugal and the euro 04 February 2008, 00:37 CET
Portugal joined the European Union in 1986 and was one of the first-wave EU countries to adopt the euro on 1 January 1999.

Poland and the euro 04 February 2008, 00:32 CET
Poland joined the European Union in 2004 and is currently preparing to adopt the euro.

Austria and the euro 04 February 2008, 00:29 CET
Austria joined the European Union in 1995 and was in the first wave of EU countries to adopt the euro on 1 January 1999.

The Netherlands and the euro 04 February 2008, 00:25 CET
The Netherlands is a founding member of the European Union and was one of the first-wave EU countries to adopt the euro on 1 January 1999.

Malta and the euro 04 February 2008, 00:19 CET
Malta joined the European Union in 2004 and adopted the euro on 1 January 2008.