not fit the criteria. While there was criticism that some of the criteria were "fudged" in order to permit wider participation, there is evidence of some tangible changes in member state macroeconomic policy to meet these criteria. On May 1, 1991, the European Council decided which member states met the criteria for entry. Only one member state which wanted to participate was excluded, Greece. The UK, Sweden, and Denmark did not request admission into EMU. The portion of the EU participating in the EMU has been known as "Euroland". The French objected to that designation because it was not the same in French. Thus, the commonly used designation is now "Zone euro" which is the same in French.
On January 1, 1999, conversion rates between the euro and national currencies are irrevocably fixed. For instance, the conversion rate of the Deutsche Mark was set at 1.9583 which means that 1 DM equals slightly more than half a euro. The chart below gives the final conversion rates. This fixing of exchange rates means that EMU member state currencies will no longer fluctuate against one another. On that same date the euro replace the ECU on a one for one basis.
Between January 1, 1999 and December 31, 2001, the euro and national currencies will exist side by side. The euro will exist only for purposes of paper transactions. It will be used for public debt and payment may be made by check in euros by private citizens. During this period, no private concern will be forced to use the euro, payments are permitted in either euros or national currency. There are regulations which cover bank charges for conversion from euros to national currency or the reverse. For instance an account holder who has an account in euros but receives a payment in French Francs may not be charged for the conversion into euros. All financial markets within Zone euro have converted to to trading in euros thus, any stock quotes will be given in euros. Although dual pri...