Editing European Currency Unit (section)

== Euro replaces the ECU ==

On 1 January 1999, the euro (with the code EUR and symbol ⟨[[Euro sign|€]]⟩) replaced the ECU at par (one-to-one).<ref name=Sauder /> Unlike the ECU, the euro is a real currency, although not all member states participate (for details on euro membership see [[Eurozone]]). Two of the countries in the ECU basket of currencies, the UK and [[Denmark]], did not join the eurozone, and a third, [[Greece]], joined late. On the other hand, [[Finland]] and [[Austria]] joined the eurozone from the beginning, even though their currencies were not part of the ECU basket, since they had joined the EU in 1995, two years after the ECU composition was "frozen".

=== Legal implications ===

Due to the ECU being used in some international financial transactions, there was a concern that foreign courts might not recognize the euro as the legal successor to the ECU. This was unlikely to be a problem, since it is a generally accepted principle of [[private international law]] that states determine their currencies, and that therefore states would accept the [[European Union]] legislation to that effect. However, for abundant caution, several foreign jurisdictions adopted legislation to ensure a smooth transition. Of particular importance, the [[U.S. state]]s of [[Illinois]] and [[New York (state)|New York]] adopted legislation to ensure a large proportion of international financial contracts recognized the euro as the successor of the ECU.<ref>{{cite web |last1=Lenihan |first1=Niall |title=The legal implications of the European Monetary Union under U.S. and New York Law |url=https://ec.europa.eu/economy_finance/publications/pages/publication_summary11222_en.htm |website=ec.europa.eu |publisher=Directorate General for Economic and Financial Affairs |access-date=6 February 2022 |date=1998}}</ref>