Euro Celebrates Decade of Existence Amid Talk of Overtaking Dollar

The euro has come a long way since its introduction 10 years ago. At first, it existed only as an electronic currency and took three more years for Europeans in the initial 12 countries to use physical coins and notes.

Its launch was surrounded by controversy as governments manipulated their debt ratios to meet the strict euro rules. The idea of a single central bank setting interest rates for diverse economies was also met with skepticism, particularly among Germans who worried about carrying weaker economies on their shoulders.

However, 10 years on, the euro is still in use by 16 member states, including Slovakia, which recently joined. It has gained almost 40% against sterling and is appreciating against the dollar.

The euro's success has sparked talk of it replacing the dollar as the world's reserve currency within 20 years. This could happen if investors stop financing America's massive budget deficits by buying US government paper, which may not be cashed.