The history of the European currency union in its contemporary form begins with economic unification strategies pursued throughout the latter half of the 20th century. The Bretton Woods Agreement, adopted by Europe in 1944, focused on a fixed exchange rate policy to prevent the wild market speculations that caused the Great Depression.8 Other agreements reinforced European economic unity, such as the 1951 Treaty of Paris establishing the European Steel and Coal Community, which was later consolidated into the European Economic Community in 1957. However, the global economic hardships of the 1970s prevented further European economic integration until efforts were renewed in the late 1980s.9
European Union. “The history of the European Union.” Accessed Dec. 20, 2020.
The eventual formation of the European Economic and Monetary Union was made possible by the signing of the 1992 Maastricht Treaty.10 Thus, the European Central Bank was created in 1998, with fixed conversion and exchange rates established between member states.11
In 2002, twelve member states of the European Union adopted the euro as a single European currency.2 As of 2020, nineteen countries use the euro for their currency.1