Here is something that is somewhat rare on a modern European stamp. The idea that something new is coming and it will be great. What a challenging undertaking the Euro currency was. If it failed, the old currencies would have reemerged at a much lower rate and everyone would be poorer. If it worked, Europe would have a potential rival to the United States Dollar and with it more equal status. So slip on your smoking jacket, fill your pipe, take your first sip of your adult beverage, and sit back in your most comfortable chair. Welcome to todays offering from The Philatelist.
It is said that great minds think alike. A while back we did a 1980s stamp from Saint Vincent, that promoted their then new Carribean currency union. See https://the-philatelist.com/2018/10/01/saint-vincent-against-all-odds-has-a-stable-currency-even-if-joshua-gone-barbados/. This is almost the exact issue with denominations of the stamp coordinated with the new coin on the stamp. In Saint Vincent, there was controversy of political leaders galivanting around in negotiation while the people suffered. The mood was captured in the Johnny Cash song, “Joshua gone Barbadoes” see https://youtu.be/nN5ui3QOYAk. By the time of the Euro’s introduction in 2002, Johnny Cash was older so Luxembourg Prime Minister Werner’s travels went unsung. Too bad.
Todays stamp is issue A437, a 1 Euro/40 Luxembourg Franc stamp issued by the Grand Dutchy of Luxembourg on October 1st, 2001. During the last days of the old currency it was fixed to the new Euro. It was a 6 stamp issue in various denominations. According to the Scott catalog, the stamp is worth $1.75 cents used.
The European Economic Community had long had a goal of a single currency. This would be difficult to achieve as the different countries often persued different monetary policies and joining a single currency would take away some of the ability to do that. In 1970, French President De Gaulle pulled out of the talks as they were not getting anywhere. Luxembourg Prime Minister Pierre Werner convinced him to return and France then convinced all the countries to charge Prime Minister Werner with putting together a proposal on how a single currency could be achieved in 10 years. Werner proposed that countries would initiate a series of economic reforms that would bring their policies more in line with West Germany. The legacy currencies would then be fixed at a rate verses the new Euro and the new currency would exist in terms of wire transactions for a few years before the actual currency hit the street.
Werner’s proposal was followed quite closely but only many years later. Time must be allotted for politicions to go to Barbadoes and stay at the big hotel. Johnny Cash had that part right. Prime Minister Werner did live to see his currency become a reality, he died in 2002 at the age of 88.
For the most part, the currency has been a success. It has proved difficult to bring poorer countries in as they are more likely to be incapable of sticking to the dictates of the currency authority and the result is a shortage of money there. This is predictable and was also true with the early days of the USA Dollar in places like Appalachia. The Euro came on in 2002 at a rate of $1.16 per Euro and as of today sits at $1.11 per Euro. As a comparison, the Chinese Juan went from $.12 to $.14 cents in the same period.
Well my drink is empty and I will pour another to toast Prime Minister Werner. He must have been frustrated to find his proposal took so long to implament. Perhaps getting invited to all the conferances and staying in the big hotel made up for it. Come again tomorrow for another story that can be learned from stamp collecting.