On January 1, 1999, eleven European Union countries formed
an economic and monetary union (EMU) and started using a single
currency - the euro. These countries locked the exchange rates
of their national currencies to the euro and are sharing the
new currency.
However, euro notes and coins will not be available until
January 1, 2001. Until then, the old national currency notes
and coins (French francs, Deutschmarks, etc.) will continue to
circulate. But legally, they are part of the euro. Their value in
euro is completely fixed. All kinds of cashless monetary
transactions like cheques or wire transfers are possible in
euro.
You can find more information about the euro at:
http://europa.eu.int/euro .