Euro introduced

On January 1, 1999, eleven European Union members — including Germany, France, Italy, Spain, and the Netherlands — irrevocably fixed their exchange rates and transferred monetary policy to the newly-created European Central Bank, forming the euro area. The currency existed only electronically at first; physical euro notes and coins entered circulation on January 1, 2002, replacing francs, marks, lira, and other national currencies. The single currency eliminated exchange-rate risk and conversion costs within the bloc and pushed member states toward the fiscal-discipline rules later tested severely during the 2010-2012 European debt crisis, when countries that had lost the ability to devalue their own currency had fewer tools to respond to recession.