The 'Euro' has arrived.

Florida Bar JournalVol. 73 Nbr. 9, October 1999

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Summary


Includes discussion of interaction with Florida law

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Extract


The 'Euro' has arrived.

The Legal Framework for its Introduction and Effect Under Florida Law

"Money speaks sense in a language all nations understand."

Aphra Behn, The Rover

A monetary union for Europe? Plato could only dream of such. Caesar, Charlemagne, and Charles V tried to impose their versions of a "monetary union" by force. On January 1, 1999, the European Union (EU) realized by consensus this long gestating supranational project in giving birth to the "euro"--the new single currency for 11 of the 15 EU nations. As designated by the Council of the European Union on May 3, 1998, the countries of Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain constitute the 11 nations of the new "euro zone" (also referred to unofficially as "Euroland"). Only the United Kingdom, Sweden, Denmark, and Greece have not selected--or have failed to qualify for--participation in the single currency. Between now and January 1, 2002, referred to as the "transitional period," these euro zone nations will be busy implementing the legal rules devised by the EU concerning the changeover from their national currencies to the new euro.

Not only are these legal rules of vital necessity to the countries concerned for the smooth transition from their national currencies to the euro, but also these rules will be of utmost importance to the international business community and, of course, international law practitioners. For example, what is the result of this transition to the euro for Florida lawyers facing outstanding contracts denominated in Deutsche marks or French francs, or securities earning interest governed by the now disappeared Paris Interbank Offered Rate (PIBOR)? Will parties to such legal instruments be entitled to cease performance thereunder based upon the defenses of "impossibility," "frustration of purpose," or "commercial impracticability" under Florida law? Accordingly, this article will introduce the Florida...

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