The United Kingdom, Sweden, Greece and Denmark are not participating in the first wave of the euro. Greece did not satisfy the criteria in 1997 but has announced its intention to join the EMU in 2001 and introduce notes and coins in 2002. Bilateral conversion rates between currencies participating in EMU on 1 January 1999 were pre-announced by the European Council of May 1998 but the rates of national currencies against the euro were not definitely fixed until 31 December 1998. Creation of the European Central Bank, headquartered in Frankfurt. Financial and banking sectors finalise changeover preparations.
Businesses accelerate preparation efforts.
The euro is established as the currency of EMU since 1 January 1999. National currencies continue to exist as expressions of the euro. Monetary, capital, foreign exchange and interbank markets converted to euros. Payment instruments such as cheques, traveller's cheques and payment cards work in euros but those denominated in national currency unit continue to circulate. A number of large companies start operating in euros and encourage suppliers to transact in euros.