May 2, 1998: first Euro countries announced

European solidarity took a big step forward on this day in 1998, when the European Central Bank named the 11 countries that would form the “first wave” of the adoption of the euro.

Those nations were Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain.

Each country’s currency ceased to be independent on January 1, 1999, with exchange rates fixed against each other based on the rates from the previous day. Physical euros would be introduced in 2002; some countries still honor the old currencies for exchange.

This was a big step toward fulfilling the goal of a single European monetary zone, as laid out in the 1992 Treaty of Maastricht. Today, 19 of the 28 European Union members have adopted the currency.

One downside for individual countries was the loss of autonomy with respect to monetary policy. Governments could no longer issue or buy back their own currency. Greece, which joined in 2000, has toyed with the idea of retiring to the drachma, although many economists believe that would be a disaster for them.

For more on the history of the euro, visit the National Bank of Belgium.