Euro notes and coins arrive, but not in Britain

More than 300 million people in 12 European countries have begun using euro notes and coins, in the biggest currency changeover in history.

The new money came into circulation at midnight on 1 January, replacing currencies including the French franc, the German mark, the Italian lira and the Irish punt. Britain is not taking part.

A smooth start

Cash machines across the eurozone began issuing euros as the new year arrived, and many people queued to withdraw their first notes. Banks and shops reported that the changeover had gone largely smoothly.

The old currencies will be withdrawn over the next two months. After that, they can only be exchanged at central banks.

The euro itself was introduced in 1999 for electronic payments and financial markets, but until now people have continued to use their national notes and coins.

The countries

The 12 countries using the euro are Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

The notes, which are the same in every country, show bridges, windows and gateways from different periods of European architecture. The coins have a common side and a national side with a design chosen by each country.

Britain stays out

Britain, Denmark and Sweden have chosen not to adopt the euro for now. The government has said Britain will join only if five economic tests set by the Chancellor, Gordon Brown, are met, and if the public approves in a referendum.

Opinion polls suggest most British people are opposed to joining. Supporters say being outside the euro will harm trade and investment, while opponents say Britain should keep control of its own interest rates.

What it means for British travellers and business

British holidaymakers will find it easier to travel around much of Europe, needing only one currency instead of several. Businesses that trade with the eurozone will also benefit from simpler pricing, although they will still face the cost of changing pounds into euros.

Some shops in Britain, particularly in tourist areas, have begun accepting euros.

A political project

The euro is one of the most ambitious projects in the history of the European Union. Supporters say it will bring Europe's economies closer together and make it the world's largest single market.

Critics warn that a single interest rate may not suit every country.