Switzerland faces the euro

The euro has made its appearance all over Europe. europa.eu.int

As Swiss banks and shops reopen after the holidays, they face a new reality: the euro has made its debut among more than 300 million Europeans.

Switzerland, which is surrounded by euro-land states, cannot expect to remain unaffected by the appearance of the most widely used currency unit in Europe since the Roman Empire.

Although Switzerland retains the Swiss franc as its currency, millions of European tourists will use the euro in the country, and Swiss tourists travelling to participating states will also become accustomed to it.

The introduction of the new single European currency seems to have been largely problem-free in the 12 members of the European Union that have made it their official currency.

Parallel currency?

Many retailers, including the shopping giant Migros, have decided to accept the euro as legal tender, although change will be returned in Swiss francs.

Some analysts expect the euro to become almost a parallel currency in Swiss border towns.

Change bureaus are already reporting keen interest in the new currency, with more than one million euros purchased in Switzerland in the first two days of the New Year.

After the Swiss Federal Railways opened change bureaus at mainline stations in Zurich and Basel at the stroke of midnight on New Year’s Day, the sale of the euro surpassed all expectations.

Long lines

Several hundred people queued up for hours in order to get hold of the new currency as soon as possible, and exchange offices had to extend their opening times.

The almost glitch-free introduction of the euro was welcomed with a huge sigh of relief on the currency markets and helped the euro enjoy one of the best days of its volatile three-year life.

There was a glitch in Austria, however, where more than 2,000 automated cash machines broke down for an hour, then were restored to service.

The euro posted gains of more than one and a half per cent against the dollar, rising above the $0.90 mark. It also gained against the Swiss franc to stand at around SFr1.4860 and posted its biggest ever one-day increase against the British pound.

Rallying round the pound

Britain remains one of three EU countries not to adopt the single European currency but the successful launch of the euro notes and coins increased speculation that the British government might call a referendum on the issue next year.

The other EU countries opting out of the euro are Sweden and Denmark.

But for all the gains it made in the last couple of days, the euro remains well below the levels at which it was launched as a trading currency three years ago.

Then, it was introduced at $1.16 and around SFr1.60.

swissinfo with agencies