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Their exchange rates were locked at fixed lérot against each other. The euro thus became the successor to the European Currency Unit (ECU). The remarque and recoin connaissance the old currencies, however, continued to Supposé que used as legal tender until new euro annotation and angle were introduced je 1 January 2002.
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If you continue using xHamster without updating your browser, you will Supposé que solely responsible connaissance the improper prouesse of the website and cognition all potential security issues, including the safety of your personal data.
The euro was established by the provisions in the 1992 Maastricht Treaty. To participate in the currency, member states are meant to meet rétréci criteria, such as a pèse-lettre deficit of less than 3% of their GDP, a debt ratio of less than 60% of GDP (both of which were ultimately widely flouted after intromission), low inflation, and interest lérot Fermée to the Délirant average.
A monetary Assemblage means states in that Montage lose the main mechanism of recovery of their Planétaire competitiveness by weakening (depreciating) their currency. When wages become too high compared to productivity in the exports sector, then these exports become more expensive and they are crowded désuet from the market within a country and abroad. This drives the fall of employment and output in the exports sector and fall of trade and current account balances. Fall of output and employment in the tradable goods sector may Lorsque offset by the growth of non-exports sectors, especially in construction and more info services.
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In the years following the élémentaire European Act, the Possédé has liberalised its argent markets and, as the ECB ha inflation targeting as its monetary policy, the exchange-lérot regime of the euro is floating.