This week the single European currency passed into legal tender in 12 countries.

While sterling soldiers on into 2002, the franc, mark, lira, peseta and eight other historic currencies have already begun to fade into the background. And February 28 is the last day the old national currencies will be legal tender.

Political arguments aside, Barnet residents will inevitably come into contact with the euro, whether travelling on the continent, trading with Europe or simply through the fluctuations of the international money markets.

Britain's entry into the single European currency is still the subject of fierce debate but one thing is sure: the euro will affect all of us.

History of the currency
The single European currency has been around in principle since the 1957 Treaty of Rome, but the specific idea of economic and monetary union was introduced in 1992.

But Chancellor Gordon Brown said in October 1997 that Britain would not join the single currency unless it was in the national economic interest.

On January 1, 1999, all 11 countries participating in the European Monetary Union (EMU) developed a common policy, with the launch of the euro as a non-cash currency and setting of exchange rates. Greece joined in January 2001.

The British Government says its current stance on euro entry is based on five economic tests: alignment between economy and euro; flexibility to cope with economic change; effect on investment; impact on financial services, and impact on employment. The Chancellor says these tests will be carried out within two years of the start of this Parliament, in June 2001.

If the Government then recommends entry, it will be put to a parliamentary vote before a referendum of the British public. From government approval to introducing the euro would take more than three years.

Euro facts

How to exchange cash
Leftover holiday cash from the 12 countries in the eurozone must be changed before the end of the currency's bedding-in period.

Euro cash was introduced on Tuesday with a changeover period of up to two months while both old national currencies and the euro are accepted.

After February 28 at the latest, old currencies will no longer be legal tender and holidaymakers could face a hefty surcharge to change their old cash into euros.

Germany is not bothering with a changeover period the deutschmark ceased to be legal tender this week. The Dutch guilder will go from January 28, the Irish punt from February 9, French francs from February 17, with all other countries waiting until February 28.

There is greater flexibility in deadlines for changing old currencies into euros.

French banks will exchange francs until the end of June, as will Portugal and Spain. The Netherlands and Belgium are prepared to wait until the end of 2002. Banks in other countries have still to decide on a cut off date for exchanging old currency.

-- by Julian Hills