EU president Jacques Santer said "the euro is at long last with us" and paid tribute to the "subtle alchemy" that has led to the advent of the single currency against a background of a closer Europe that can "direct its own future" in a unified way.

“The euro is now in your hands, it is in your interests to use and to give it life." Mr Santer told the 290m people of the eurozone which stretches from the Arctic Circle to the Mediterranean.

The birth of the euro confirms the emergence of a powerful new currency bloc centred on the industrialised economies of Europe. The euro will join the US dollar and the Japanese yen as the major trading currencies on international financial markets with its architects hoping for a stable unit that will encourage economic expansion in Europe.

ECB executive board member and chief economist Otmar Issing said in an interview with Boersen-Zeitung newspaper the euro is expected to be stable after its launch.

“I cannot even say approximately in how far the euro will be used internationally shortly after its launch," Mr Issing said.

Time differences

The rates agreed take full legal effect at midnight local time in each of the eurozone countries. It will happen first in 2200 GMT in Finland, which is one hour ahead of most of the other eurozone countries.