The Problem with the Euro
The Euro has been around for almost 20 years now as an idea, an obligation on member states of the European Union under the 1992 Maastricht Treaty. On January 1, 1999 the Euro moved from being an idea to an abstract entity; you could get it in travelers cheques and see it reflected on a bank statement, but you couldn't hold one. For the average European, that didn't happen for another three years – until Euro notes and coins were released on January 1, 2002.
Sixteen of the 27 member states in the European Union use the Euro. They are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. Together they constitute the Eurozone. All the countries in the EU are supposed to be working toward replacing their traditional currency with the Euro.
Now the Euro is under stress. Greece has attracted the most attention in the news, but several of the EU's poorer member states are having problems managing their debts. The crisis in Greece may soon become the crisis in Portugal. And while debt (and the ability to make payments on national loans), deficits are an issue, too. Greece, Spain, and the UK have the highest budget deficits.
The current situation is going to mean stronger EU states (like France and Germany) bailing out weaker economies. Germany in particular resents that situation. It's also going to mean austerity measures that workers in Ireland and Italy seem prepared to rebel against.
