5 euro cent coin
The 5 euro cent coin has a value of one twentieth of a euro and is composed of copper-covered steel. All coins have country-specific obverse; the coin has been used since 2002 and was not re-designed in 2007 as was the case with the higher-value coins. The coin dates from 2002, when euro coins and banknotes were introduced in the 12-member eurozone and its related territories; the common side was designed by Luc Luycx, a Belgian artist who won a Europe-wide competition to design the new coins. The design of the 1 to 5 cent coins was intended to show the European Union's place in the world while the one and two euro coins showed the 15 states as one and the 10- to 50-cent coins showed separate EU states; the design of the national sides fifteen was the subject of national competitions, but was subject to some uniform specifications such as the requirement to include twelve stars. National designs were not allowed to change until the end of 2008, unless a monarch dies or abdicates; this happened in Monaco and the Vatican City, resulting in three new designs in circulation.
National designs have seen some changes as new rules required that national designs should include the name of the issuing country: neither Finland and Belgium had shown their name, so made minor changes. As the EU's membership has since expanded in 2004 and 2007, with further expansions envisaged, the common face of all euro coins from the value of 10 cent and above were redesigned in 2007 to show a new map; the 1- to 5-cent coins, did not change, as the highlighting of the old members over the globe was so faint it was not considered worth the cost. However, new national coin designs were added in 2007 with the entry of Slovenia, in 2008 with Cyprus and Malta and Slovakia in 2009. In 2011 Estonia, in 2014 Latvia and Lithuania in 2015; the coins are composed of copper-covered steel, with a diameter of 21.25 mm, a 1.67 mm thickness and a mass of 3.92 grams. Coincidentally, the dimensions are nearly identical to those of Canadian and United States 5-cent coins; the coins' edges are smooth. The coins have been used from 2002, though some are dated 1999, the year the euro was created as a currency, but not put into general circulation.
The reverse displays a globe in the bottom right. The members of the EU are highlighted and the northern part of Africa and the western part of Asia are shown. Six fine lines cut diagonally behind the globe from each side of the coin and have twelve stars at their ends. To the top left is a large number 5 followed, in smaller text, by the words "Euro Cent"; the designers initials, LL, appear to the right of the globe. The obverse side of the coin depends on the issuing country. All have to include twelve stars, the engraver's initials and the year of issue. New designs have to include the name or initials of the issuing country; the side cannot repeat the denomination of the coin unless the issuing country uses an alphabet other than Latin. Austria and Greece will at some point need to update their designs to comply with guidelines stating they must include the issuing state's name or initials, not repeat the denomination of the coin. In addition, there are several EU states; some of them have agreed upon their coin designs.
See enlargement of the Eurozone for expected entry dates of these countries. In the Netherlands, the coin carries the nickname stuiver, carried over from the previous currency; the three copper coins are nicknamed koper, ros or rostjes in Flemish. "National sides: 5 cents". European Central Bank. Retrieved 18 August 2009
In the foreign exchange market and international finance, a world currency, supranational currency, or global currency is a currency, transacted internationally, with no set borders. In the 17th and 18th centuries, the use of silver Spanish dollars or "pieces of eight" spread from the Spanish territories in the Americas westwards to Asia and eastwards to Europe, forming the first worldwide currency. Spain's political supremacy on the world stage, the importance of Spanish commercial routes across the Atlantic and the Pacific, the coin's quality and purity of silver helped it become internationally accepted for over two centuries, it was legal tender in Spain's Pacific territories of the Philippines, Micronesia and the Caroline Islands and in China and other Southeast Asian countries until the mid-19th century. In the Americas it was legal tender in all of South and Central America and in the US and Canada until the mid-19th century. In Europe the Spanish dollar was legal tender in the Iberian Peninsula, in most of Italy including: Milan, the Kingdom of Naples, Sardinia, the Franche-Comté, in the Spanish Netherlands.
It was used in other European states including the Austrian Habsburg territories. Prior to and during most of the 19th century, international trade was denominated in terms of currencies that represented weights of gold. Most national currencies at the time were in essence different ways of measuring gold weights. Hence some assert; the emerging collapse of the international gold standard around the time of World War I had significant implications for global trade. Before 1944, the world reference currency was the United Kingdom's pound sterling; the transition between pound sterling and United States dollar and its impact for central banks was described recently. In the period following the Bretton Woods Conference of 1944, exchange rates around the world were pegged to the United States dollar, which could be exchanged for a fixed amount of gold; this reinforced the dominance of the US dollar as a global currency. Since the collapse of the fixed exchange rate regime and the gold standard and the institution of floating exchange rates following the Smithsonian Agreement in 1971, most currencies around the world have no longer been pegged to the United States dollar.
However, as the United States has the world's largest economy, most international transactions continue to be conducted with the United States dollar, it has remained the de facto world currency. According to Robert Gilpin in Global Political Economy: Understanding the International Economic Order: "Somewhere between 40 and 60 percent of international financial transactions are denominated in dollars. For decades the dollar has been the world's principal reserve currency; some of the world's currencies are still pegged to the dollar. Some countries, such as Ecuador, El Salvador, Panama, have gone further and eliminated their own currency in favor of the United States dollar. Only two serious challengers to the status of the United States dollar as a world currency have arisen. During the 1980s, the Japanese yen became used as an international currency, but that usage diminished with the Japanese recession in the 1990s. More the euro has competed with the United States dollar in international finance.
The euro inherited its status as a major reserve currency from the German mark and its contribution to official reserves has increased as banks seek to diversify their reserves and trade in the eurozone expands. As with the dollar, some of the world's currencies are pegged against the euro, they are Eastern European currencies like the Bulgarian lev, plus several west African currencies like the Cape Verdean escudo and the CFA franc. Other European countries, while not being EU members, have adopted the euro due to currency unions with member states, or by unilaterally superseding their own currencies: Andorra, Kosovo, San Marino, Vatican City; as of December 2006, the euro surpassed the dollar in the combined value of cash in circulation. The value of euro notes in circulation has risen to more than €610 billion, equivalent to US$800 billion at the exchange rates at the time. A 2016 report by the World Trade Organisation shows that the world's energy and services trade are made 60% with US dollar and 40% by euro.
As a result of the rapid internationalization of the renminbi, as of 2013 it was the world's 8th most traded currency. At the end of November, 2015, the Chinese renminbi was designated as one of the world's global currencies, became one of the currency in the currency basket known as special drawing rights. On 16 March 2009, in connection with the April 2009 G20 summit, the Kremlin called for a supranational reserve currency as part of a reform of the global financial system. In a document containing proposals for the G20 meeting, it suggested that the International Monetary Fund should be instructed to carry out specific studies to review the following options: Enlargement of the list of currencies used as reserve ones, based on agreed measures to promote the development of major regional financial centers. In this context, we should consider possible establishment of specific regional mechanisms which would contribute to reducing volatility of exchange rates of such reserve currencies. Introduction of a supra-national reserve cur
Euro starter kits
Euro starter kits are packs of euro coins of all the eight denominations sealed in a plastic bag. The scope of these kits is to familiarise the citizens of a nation, going to join the eurozone with the new currency, the euro. Another objective is to fill up cash registers well in advance of €-Day; these kits are available from the local banks some weeks before the euro changeover. There are two types of starter packs: business starter kits and kits for the general public; the difference is in the number of coins per pack. Business kits are intended for retailers, thereby they contain around 100 euro or more of coins and are contained in rolls, whereas the mini-starter kits are intended for the general public and have a small volume of coins; the Austrian euro starter kits were released on 15 December 2001. The general public kit was sold for €14.54, whereas the business starter kits were available much earlier, on 1 September 2001, each kit contained €145,50 in Austrian euro coins. The quantity of the public and business starter kits produced was 6,000,000 and 750,000 kits, respectively.
The Belgian starter kits were sold at 500 Belgian francs. Cyprus, together with Malta, joined the eurozone on 1 January 2008. On 3 December 2007, the Central Bank of Cyprus issued mini-starter packs and business kits, so the Cypriots would have enough euro cash before €-Day. Forty thousand starter kits, worth €172 each, were available for businesses, but only 22.000 were sold. Since these starter kits contained rolled coins, the remaining kits could be used by the banks after €-day. Another 250,000 mini-kits, worth €17.09 each, were available for the general public. Some 189,000 mini-kits were sold. According to the Eurobarometer survey, more than 70% of the citizens who had bought a mini-kit opened it and used the coins after the changeover, while some 20% kept it untouched. After the changeover, the unsold mini-kits were exported to satisfy the demand of coin collectors abroad. Cypriot euro coins worth €3.5 million were exported in the first three weeks of January 2008. Estonia joined the eurozone on 1 January 2011.
It was the 17th member state of the eurozone. Mini-euro starter kits were issued on 1 December 2010 and it has issued 2 types of business kits. One business kit contains €111 worth of coins packed in rolls, whereas the other kit contains 15 rolls worth €198. France was not just one of the founders of the European Union but was one of the first countries to adopt the euro; the French euro starter packs were made available to the public on 14 December 2001. The nominal price of these packs was 100 French francs, equivalent to €15.25. The kits contained coins from the years 1999, 2000 and 2001. In Germany, each starter kit contained 20 coins for a total of €10.23, equivalent to 20.01 DEM. They were released to the public on 17 December 2001. There are five different kinds of one for each mint; the following are the mintage quantities per mint: A: 12,100,000 Kits D: 11,600,000 Kits F: 12,100,000 Kits G: 8,100,000 Kits J: 9,600,000 Kits The Greek kit contained coins with a total value of €14.67, or ₯5,000.
More it contained: €2.00 x 2 €1.00 x 5 €0.50 x 6 €0.20 x 7 €0.10 x 8 €0.05 x 6 €0.02 x 6 €0.01 x 5 Ireland issued 750,000 starter packs on 14 December 2001. Each starter pack contained 19 coins worth €6.35 in total, or IR£5. It contained: €2.00 * 1 €1.00 * 2 €0.50 * 2 €0.20 * 4 €0.10 * 4 €0.05 * 2 €0.02 * 1 €0.01 * 3 Italy issued 30,000,000 starter kits. Each starter kit had a face value of €12,91, equivalent to 25,000 Italian lira. There are two variations of these packs. In December 2013 Latvia issued 800,000 starter kits; each starter kit had a face value of €14,23, equivalent to 10 Latvian lats. In Lithuania, each starter kit contained 23 coins for a total of €11.59, equivalent to 40.02 LTL. They were released to the public on 1 December 2014. Lithuania issued 900,000 public mini-starter kits. Except for different text on the bag and different national sides, Luxembourg's starter sets were the same as the Belgian sets, as Belgium and Luxembourg were in a pre-existing currency union; each set had the equivalent of 500 francs in euro coins.
The first Maltese euro coins were made available to the public on 1 December 2007, as business starter packs worth €131 each were introduced for small businesses to fill up their cash registers with a sufficient amount of euro coins before €-day. Mini-kits each worth €11.65 were made available to the general public on 10 December 2007. Malta issued 330,000 starter kits for the general public. All the 33,000 starter kits for businesses were sold. Despite not being a member of the European Union, in 1999 Monaco adopted the euro; this is because Monaco never had its own currency and was using the French one, so when France switched to the euro Monaco had no option but to follow suit. The European Union has a special agreement with Monaco that allows this country to mint a limited number of euro coins. Late in 2001, Monaco issued 51,200 starter kits for the nominal price of €15,25 each; the Netherlands issued two different starter kits, intended to educate its citizens about the euro. One contained one of each coin and was distributed in a card, for free to the citizens of the Netherlands.
Packaged, mint condition cards have since become collector items. Additional bags of assorted euro coins could be purchased to familiarise oneself with them; these bags contained €11.34 worth of coins and sold for 25 guilders, the same as the value of the coins. One million sta
Economy of the European Union
The European Union is the second largest economy in the world in nominal terms and according to purchasing power parity or PPP. The European Union's GDP was estimated to be $18.8 trillion in 2018, representing ~22% of global economy. The euro, used by 19 of its 28 members, is the second largest reserve currency as well as the second most traded currency in the world after the United States dollar; the euro is the official currency in 25 countries, in the eurozone and in six other European countries or de facto. The European Union economy consists of an internal market of mixed economies based on free market and advanced social models; the GDP per capita was $37,800 in 2017, compared to $59,495 in the United States, $42,695 Japan and $16,636 in China. There are significant disparities in GDP per capita between member states ranging from $105,148 in Luxembourg to $21,678 in Bulgaria. With a low Gini coefficient of 31, the European Union has a more egalitarian repartition of incomes than the world average.
Major economic hubs and financial centres where the large number of institutions and banks is located are Amsterdam, Bucharest, Frankfurt, Göteborg, Lisbon, Madrid, Milan and Warsaw. Euronext is the main stock exchange of the Eurozone and the 7th world largest by market capitalisation. Foreign investments made in the European Union total $5.1 trillion in 2012, while the EU's investments in foreign countries total $9.1 trillion, by far the highest domestic and foreign investments in the world. Since the beginning of the public debt crisis in 2009, opposite economic situations have emerged between Southern Europe on one hand, Central and Northern Europe on the other hand: a higher unemployment rate and public debt in the Mediterranean countries with the exception of Malta, a lower unemployment rate with higher GDP growth rate in the Eastern and in Northern member countries. In 2015, public debt in the European Union was 85% of GDP, with disparities between the lowest rate, Estonia with 9.7%, the highest, Greece with 176%.
The ten largest trading partners of the European Union are the United States, Switzerland, Turkey, Norway, South Korea and India. The EU is represented as a unified entity in the World Trade Organization, the G-20 and G7, alongside with the EU's member countries participating. Beginning in the year 1999 with some EU member states, now 19 out of 28 EU states use the euro as official currency in a currency union; the remaining 9 states continued to use their own currency with the possibility to join the euro later. The euro is the most used currency in the EU. Since 1992 the Maastricht treaty sets out rigid economic and fiscal convergence criteria for the states joining the euro. Starting 1997, the Stability and Growth Pact has been started to ensure continuing economic and fiscal stability and convergence. Denmark and the United Kingdom, not members of the eurozone, have special opt-outs concerning the joining of the euro. Sweden can opt out by choosing when or whether to join the European Exchange Rate Mechanism, the preliminary step towards joining.
The remaining states are committed to join the euro through their Treaties of Accession. Starting with Greece in 2009, five of the 19 eurozone states have been struggling with a sovereign debt crisis, by many called the European debt crisis. All these states got bailout packages; as of 2015, all countries but Greece have recovered from their debt crisis. Other non-eurozone states experienced a debt crisis and went through successful bailout programmes, i.e. Hungary and Latvia; the operation of the EU has an agreed budget of €141 billion for the year 2011, €862 billion for the period 2007–2013, this represents around 1% of the EU's GDP. The services sector is by far the most important sector in the European Union, making up 74.7% of GDP, compared to the manufacturing industry with 23.8% of GDP and agriculture with only 1.5% of GDP. Financial services are well developed within the Single Market of the Union. Companies have a greater reliance on bank lending than in the United States, although a shift towards companies raising more funding through capital markets is planned through the Capital Markets Union initiative, the EU plan put forward by the Commission in September 2015 to mobilise the free movement of capital within the EU.
The plan aims "to establish the building blocks of an integrated capital market in the EU by 2019". The CMU initiative comprises 33 measures in all; the plan was updated in June 2017. The Commissioner for Financial Stability, Financial Services and Capital Markets Union, Valdis Dombrovskis, former Prime Minister of Latvia, is responsible for delivery of the initiative. Many EU cities are financial centres. For example, UK-located banks underwrite around half of the debt and equity issued by EU companies, UK-located banks are counterparty to over half of the over-the-counter interest rate derivatives traded by companies and banks in the EU, 30 million EEA policyholders are insured through an insurer based in the UK. Central counterparties located in the UK provide services to EU clients in a range of markets and asset managers operating in the UK account for 37% of all assets managed across Europe. According to the Global Financial Centres Index, after the United Kingdom leaves the EU in March 2019, the two larg
International status and usage of the euro
The international status and usage of the euro has grown since its launch in 1999. When the euro formally replaced 12 currencies on 1 January 2002, it inherited their use in territories such as Montenegro and replaced minor currencies tied to the pre-euro currencies, such as in Monaco. Four small states have been given a formal right to use the euro, to mint their own coins, but all other usage has been unofficial outside the eurozone. With or without an agreement these countries, unlike those in the eurozone, do not participate in the European Central Bank or the Eurogroup, its international usage has grown as a trading currency, acting as an economic or political alternative to using the United States dollar. Its increasing usage in this sense has led to its becoming the only significant challenger to the US dollar as the world's main reserve currency. Several European microstates outside the EU have adopted the euro as their currency. For EU sanctioning of this adoption, a monetary agreement must be concluded.
Prior to the launch of the euro, agreements were reached with Monaco, San Marino, Vatican City by EU member states allowing them to use the euro and mint a limited amount of euro coins to be valid throughout the Eurozone. However, they cannot print banknotes. All of these states had had monetary agreements to use yielded eurozone currencies; the Vatican and San Marino had their currencies pegged to the Italian lira and Monaco used the Monegasque franc, pegged to the French franc. Between 2010 and 2012, new agreements between the EU and Monaco, San Marino and the Vatican City came into force. A similar agreement was negotiated with Andorra and came into force on 1 April 2012. Andorra did not have an official currency. Prior to 2002, it used both the French franc and Spanish peseta as de facto legal tender currencies, though they never had an official monetary arrangement with either country, switched to the euro when it was introduced on 1 January 2002. After years of negotiations over concerns with banking secrecy, the EU and Andorra signed a monetary agreement on 30 June 2011 which made the euro the official currency in Andorra and allowed them to mint their own euro coins as early as 1 July 2013, provided they comply with the agreement's terms.
However, the first Andorran euro coins did not enter into circulation until January 2015. Outside the EU, there are three French territories and a British territory that have agreements to use the euro as their currency. All other dependent territories of eurozone member states that have opted not to be a part of EU with Overseas Country and Territory status, use local currencies which are pegged to the euro or US dollar; as non-sovereign entities, dependent territories which have adopted the euro are not permitted to mint euro coins like the European microstates, nor do they get a seat in the European Central Bank or the Eurogroup. France is responsible for ensuring that the laws governing the EMU apply in their territories which use the euro; the first OCTs to adopt the euro through a monetary agreement were the French overseas territories of Saint-Pierre-et-Miquelon, located off the coast of Canada, Mayotte in the Indian Ocean. They both adopted the euro on 1 January 1999 when the currency was first introduced at the electronic level.
Mayotte subsequently held a referendum in 2009 in which it decided to become an integral part of France. Its status was changed from an OCT to an OMR, where EU laws apply without separate agreements, on 1 January 2014, which rendered the previous monetary agreement unnecessary. On 22 February 2007, Saint Barthélemy and Saint Martin were politically separated from the French Outermost region Guadeloupe to form two new French overseas collectivities; this caused their status in the EU to be in legal limbo until ratification of the Treaty of Lisbon reaffirmed both territories remained in the EU. The euro continued to be used in both territories throughout this time without incident; when Saint Barthélemy subsequently became an overseas territory of the European Union on 1 January 2012, changing its status to an OCT, the territory had to sign a monetary agreement to continue using the euro. With the adoption of the euro by Cyprus per 1 January 2008, the Sovereign Base Areas of Akrotiri and Dhekelia, which had used the Cypriot pound decided to adopt the euro.
The base areas are an overseas territory of the United Kingdom, an EU member state which itself does not use the euro, but these bases are outside of the EU and under military jurisdiction. Their laws and currency have been aligned with those of the Republic of Cyprus, leading to the euro's adoption in the two areas. Montenegro and Kosovo have used the euro since its launch, as they used the German mark rather than the Yugoslav dinar. Unlike the states above, they do not have a formal agreement with the EU to use the euro as their currency, have never minted marks or euros. There were political concerns that Serbia could use the currency to destabilise these territories so they received Western help in adopting and using the mark, they switched to the euro. In North Kosovo, populated by the Serbian minority, the Serbian dinar, which replaced the Yugoslav dinar, continues to be used despite its lack of recognition or use elsewhere in Kosovo
Economy of Europe
The economy of Europe comprises more than 740 million people in 50 different countries. Formation of the European Union and in 1999, the introduction of a unified currency – the euro brings participating European countries closer through the conveniece of a shared currency and has led to a stronger European cash flow; the difference in wealth across Europe can be seen in former Cold War divide, with some countries breaching the divide. Whilst most European states have a GDP per capita higher than the world's average and are highly developed, some European economies, despite their position over the world's average in the Human Development Index, are poorer. Throughout this article "Europe" and derivatives of the word are taken to include selected states whose territory is only in Europe – such as Turkey and the Russian Federation – and states that are geographically in Asia, bordering Europe and culturally adherent to the continent – such as Armenia and Cyprus. Europe in 2010 had a nominal GDP of $19.920 trillion.
Europe's largest national economies with GDP of more than $1 trillion are: Germany, United Kingdom, Italy, Spain, Netherlands,Other large european economies are that of Turkey, Poland, Switzerland and Austria. European Union generates about 75-80 % of Europe's GDP; the EU as a whole is the wealthiest and largest economy in the world, topping the US by more than 2 trillion at the time of the financial crisis. In 2009 Europe remained the world's wealthiest region, its $33 trillion in assets under management represented more than one-third of the world's wealth. Unlike North America it was one of few regions. Of the top 500 largest corporations measured by revenue, 184 have their headquarters in Europe. 161 are 15 in Switzerland, 6 in Russia, 1 in Turkey, 1 in Norway. As noted in 2010 by the Spanish sociologist Manuel Castells, the average standard of living in Western Europe is high: "The bulk of the population in Western Europe still enjoys the highest living standards in the world, in the world's history."
Prior to World War II, Europe's major financial and industrial states were the United Kingdom and Germany. The Industrial Revolution, which began in Britain, had spread across Europe, before long the entire continent was at a high level of industry. World War I had led to the industries of some European states stalling, but in the run-up to World War II Europe had recovered well, was competing with the ever-increasing economic might of the United States of America. However, World War II caused the destruction of most of Europe's industrial centres, much of the continent's infrastructure was laid to waste. Following World War II, European governments were in tatters. Many non-Socialist European governments moved to link their economies, laying the foundation for what would become the European Union; this meant a huge increase in cross-border trade. Whilst these European states improved their economies, by the 1980s, the economy of the COMECON was struggling due to the massive cost of the Cold War.
The GDP and the living standards of Central and Eastern European states were lower than in other parts of Europe. The European Community grew to 12 in this period. Average living standards in Europe rose during the post-war period, as characterised by these findings:Per capita private consumption in 1980 Luxembourg: 5495 France: 5395 Germany, Federal Republic: 5319 Belgium: 5143 Denmark: 4802 Netherlands: 4792 United Kingdom: 4343 Italy: 4288 Ireland: 3029Per capita personal disposable income in 1980 Belgium: 6202 France: 6044 Germany, Federal Republic: 5661 Netherlands: 5490 Italy: 5378 Denmark: 4878 United Kingdom: 4698 When the'Eastern Bloc' dissolved around 1991, these states struggled to adapt to free-market systems. There was, however, a huge variation in degrees of success, with Central European states such as the Czech Republic, Slovakia and Poland adapting reasonably whilst states that used to form the USSR such as Russia and Ukraine struggled to reform their crumbling infrastructures.
Many developed European countries were quick to develop economic ties with fellow European states, where democracy was reintroduced. After the Revolutions of 1989, states in Central Europe and the Baltic states dealt with change, former Yugoslavian republics descended into war and Russia and Belarus are still struggling with their old systems. Europe's largest economy, struggled upon unification in 1991 with former communist German Democratic Republic, or East Germany, influenced by the Soviet Union; the GDR had much of its industrial infrastructure removed during the Cold War, for many years unified Germany struggled to build infrastructure in the former East Germany up to the level of former West Germany. Peace did not come to Yugoslavia for a decade, by 2003, there were still many NATO and EU peacekeeping troops present in Bosnia and Herzegovina and Kosovo. War hampered economic growth, with only Slovenia making any real progress in the 1990s; the European economy was affecte