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January 2024 marks the 25th anniversary of the euro, which was introduced as an accounting currency in 1999 before being issued as physical coins and banknotes in 2002.
Eleven member states of the European Union (including Luxembourg) adopted their new common currency on 1 January 1999. Today, 20 out of 27 EU member countries (together making up the euro area, or Eurozone) use the euro as their official currency. Croatia was the latest country to join the euro area, introducing the common currency on 1 January 2023. One year later, the euro is celebrating its 25th anniversary.
The European Central Bank (ECB) was created on 1 June 1998, in preparation for the introduction of the euro, and thus celebrated its own 25th anniversary last year. At the time, ECB President Christine Lagarde stated: "The euro is more than a currency [...]. It is the strongest form of European integration and stands for a united Europe that works together, protecting and benefiting all its citizens."
One of the first countries to adopt the euro, Luxembourg was among twelve member states to officially introduce euro banknotes and coins on 1 January 2002, following a three-year transitional period. The Central Bank of Luxembourg (Banque Centrale du Luxembourg) continued to exchange national coins (Luxembourg franc) until 31 December 2004. National banknotes can still be exchanged.
Following the US dollar, the euro is currently the second largest reserve currency and the second most traded currency worldwide. About 350 million EU citizens use the currency daily. It is also a de facto domestic currency in Kosovo and Montenegro (non-EU countries). After Croatia, Bulgaria is expected to be the next country to adopt the euro, on 1 January 2025 (initially planned for 1 January 2024).
