Coordinates	52°0′54″N4°21′24″N
Currency name	Euro
Image 1	Euro_banknotes.png
Image 2	Euro coins version II.png
Image title 1	Banknotes
Image title 2	Coins
Iso code	EUR (num. 978)
Inflation rate	1.8%, September 2010
Inflation source date	ECB, June 2009
Inflation method	HICP
Pegged by
Sub-unit ratio 1	1/100
Sub-unit name 1	cent
Sub-unit inline note 1	actual usage varies depending on language
Symbol	€
Plural	See Euro linguistic issues
Plural subunit 1	See article
Frequently used coins	1c, 2c, 5c, 10c, 20c, 50c, €1, €2
Other coins	1c, 2c (Not used in Netherlands and Finland)
Coin article	euro coins
Frequently used banknotes	€5, €10, €20, €50,€100, €200, €500
Banknote article	euro banknotes
Nickname	The single currency
Issuing authority	European Central Bank
Issuing authority website	www.ecb.europa.eu
Printer
Printer override with original text	Y
Printer website
Mint
Mint override with original text	Y
Mint website

The euro (sign: €; code: EUR) is the official currency of the eurozone: 17 of the 27 Member States of the European Union (EU). It is also the currency used by the EU institutions. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. The currency is also used in a further 5 European countries (Montenegro, Andorra, Monaco, San Marino and Vatican) with and without formal agreements, one disputed territory (Kosovo) and is consequently used daily by some 327 million Europeans. Additionally, over 175 million people worldwide use currencies which are pegged to the euro, including more than 150 million people in Africa.

The euro is the second largest reserve currency as well as the second most traded currency in the world after the U.S. dollar. , with more than €800 billion in circulation, the euro has the highest combined value of banknotes and coins in circulation in the world, having surpassed the U.S. dollar. Based on IMF estimates of 2008 GDP and purchasing power parity among the various currencies, the eurozone is the second largest economy in the world.

The name euro was officially adopted on 16 December 1995. The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) at a ratio of 1:1. Euro coins and banknotes entered circulation on 1 January 2002.

Administration

in Frankfurt, Germany, is in charge of the eurozone's monetary policy]] The euro is managed and administered by the Frankfurt-based European Central Bank (ECB) and the Eurosystem (composed of the central banks of the eurozone countries). As an independent central bank, the ECB has sole authority to set monetary policy. The Eurosystem participates in the printing, minting and distribution of notes and coins in all Member States, and the operation of the eurozone payment systems.

The 1992 Maastricht Treaty obliges most EU Member States to adopt the euro upon meeting certain monetary and budgetary requirements, although not all states have done so. The United Kingdom and Denmark negotiated exemptions, while Sweden turned down the euro in a 2003 referendum, and has circumvented the obligation to adopt the euro by not meeting the monetary and budgetary requirements. All nations that have joined the EU since 1993 have pledged to adopt the euro in due course.

Characteristics

Coins and banknotes

The euro is divided into 100 cents (sometimes referred to as euro cents, especially when distinguishing them from other currencies, and referred to as such on the common side of all cent coins). In Community legislative acts the plural forms of euro and cent are spelled without the s, notwithstanding normal English usage. Otherwise, normal English plurals are recommended and used; with many local variations such as 'centime' in France.

All circulating coins have a common side showing the denomination or value, and a map in the background. For the denominations except the 1-, 2- and 5-cent coins that map only showed the 15 Member States which were members when the euro was introduced. Beginning in 2007 or 2008 (depending on the country) the old map is being replaced by a map of Europe also showing countries outside the Union like Norway. The 1-, 2- and 5-cent coins, however, keep their old design, showing a geographical map of Europe with the 15 Member States of 2002 raised somewhat above the rest of the map. All common sides were designed by Luc Luycx. The coins also have a national side showing an image specifically chosen by the country that issued the coin. Euro coins from any Member State may be freely used in any nation which has adopted the euro. The coins are issued in €2, €1, 50c, 20c, 10c, 5c, 2c, and 1c denominations. In order to avoid the use of the two smallest coins, some cash transactions are rounded to the nearest five cents in the Netherlands (by voluntary agreement) and in Finland (by law). This practice is discouraged by the Commission, as is the habit of certain shops to refuse to accept high value euro notes.

Commemorative coins with €2 face value have been issued with changes to the design of the national side of the coin. These include both commonly issued coins, such as the €2 commemorative coin for the fiftieth anniversary of the signing of the Treaty of Rome, and nationally issued coins, such as the coin to commemorate the 2004 Summer Olympics issued by Greece. These coins are legal tender throughout the eurozone. Collector's coins with various other denominations have been issued as well, but these are not intended for general circulation, and they are legal tender only in the Member State that issued them.

The design for the euro banknotes has common designs on both sides. The design was created by the Austrian designer Robert Kalina. Notes are issued in €500, €200, €100, €50, €20, €10, €5. Each banknote has its own colour and is dedicated to an artistic period of European architecture. The front of the note features windows or gateways while the back has bridges. While the designs are supposed to be devoid of any identifiable characteristics, the initial designs by Robert Kalina were of specific bridges, including the Rialto and the Pont de Neuilly, and were subsequently rendered more generic; the final designs still bear very close similarities to their specific prototypes; thus they are not truly generic. Some of the highest denominations such as the €500 are not issued in all countries due to criminal use, though they remain legal tender throughout the eurozone.

Payments clearing, electronic funds transfer

Capital within the EU may be transferred in any amount from one country to another. All intra-EU transfers in euro are considered as domestic payments and bear the corresponding domestic transfer costs. This includes all Member States of the EU, even those outside the eurozone providing the transactions are carried out in euro. Credit/debit card charging and ATM withdrawals within the eurozone are also charged as domestic, however paper-based payment orders, like cheques, have not been standardised so these are still domestic-based. The ECB has also set up a clearing system, TARGET, for large euro transactions.

Currency sign

and handwritten.]] A special euro currency sign (€) was designed after a public survey had narrowed the original ten proposals down to two. The European Commission then chose the design created by the Belgian Alain Billiet. The official story of the design history of the euro sign is disputed by Arthur Eisenmenger, a former chief graphic designer for the EEC, who claims to have created it as a generic symbol of Europe.

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The European Commission also specified a euro logo with exact proportions and foreground/background colour tones. While the Commission intended the logo to be a prescribed glyph shape, font designers made it clear that they intended to design their own variants instead. Typewriters lacking the euro sign can create it by typing a capital 'C', backspacing and overstriking it with the equal ('=') sign. Placement of the currency sign relative to the numeric amount varies from nation to nation, but for texts in English the symbol (and the ISO-standard "EUR") should precede the amount.

Introduction of the euro

The euro was established by the provisions in the 1992 Maastricht Treaty. To participate in the currency, Member States are meant to meet strict criteria, such as a budget deficit of less than three per cent of their GDP, a debt ratio of less than sixty per cent of GDP, low inflation, and interest rates close to the EU average. In the Maastricht Treaty, the United Kingdom and Denmark were granted exemptions per their request from moving to the stage of monetary union which would result in the introduction of the euro.

Economists who helped create or contributed to the euro include Fred Arditti, Neil Dowling, Wim Duisenberg, Robert Mundell, Tommaso Padoa-Schioppa and Robert Tollison. (For macro-economic theory, see below.) The name euro was devised on 4 August 1995 by Germain Pirlot, a Belgian Esperantist and ex-teacher of French and history, and officially adopted in Madrid on 16 December 1995.

Due to differences in national conventions for rounding and significant digits, all conversion between the national currencies had to be carried out using the process of triangulation via the euro. The definitive values in euro of these subdivisions (which represent the exchange rates at which the currency entered the euro) are shown at right.

The rates were determined by the Council of the European Union, based on a recommendation from the European Commission based on the market rates on 31 December 1998. They were set so that one European Currency Unit (ECU) would equal one euro. The European Currency Unit was an accounting unit used by the EU, based on the currencies of the Member States; it was not a currency in its own right. They could not be set earlier, because the ECU depended on the closing exchange rate of the non-euro currencies (principally the pound sterling) that day.

The procedure used to fix the irrevocable conversion rate between the drachma and the euro was different, since the euro by then was already two years old. While the conversion rates for the initial eleven currencies were determined only hours before the euro was introduced, the conversion rate for the Greek drachma was fixed several months beforehand.

The currency was introduced in non-physical form (traveller's cheques, electronic transfers, banking, etc.) at midnight on 1 January 1999, when the national currencies of participating countries (the eurozone) ceased to exist independently. Their exchange rates were locked at fixed rates against each other, effectively making them mere non-decimal subdivisions of the euro. The euro thus became the successor to the European Currency Unit (ECU). The notes and coins for the old currencies, however, continued to be used as legal tender until new euro notes and coins were introduced on 1 January 2002.

The changeover period during which the former currencies' notes and coins were exchanged for those of the euro lasted about two months, until 28 February 2002. The official date on which the national currencies ceased to be legal tender varied from Member State to Member State. The earliest date was in Germany, where the mark officially ceased to be legal tender on 31 December 2001, though the exchange period lasted for two months more. Even after the old currencies ceased to be legal tender, they continued to be accepted by national central banks for periods ranging from several years to forever (the latter in Austria, Germany, Ireland and Spain). The earliest coins to become non-convertible were the Portuguese escudos, which ceased to have monetary value after 31 December 2002, although banknotes remain exchangeable until 2022.

US economists on the euro, 1989–2002

A survey of US economists and their views on the EMU and euro from 1989–2002 finds that the euro has gone much better than many expected. Academic economists, overall, were more skeptical than Federal Reserve economists who adopted a more pragmatic approach. The skepticism appears to have resulted from the strong influence of the optimum currency area theory; failure to see monetary unification as an evolutionary process; failure to identify pegged exchange rates, rather than floating rates, as the practical alternative to a single European currency; and the belief that the single currency for Europe was primarily a political project that ignored economic fundamentals.

Fred Bergsten of the Peterson Institute for International Economics in Washington DC was one of a few American economists optimistic about the euro. His analysis focused on European political economy rather than technical considerations like the theory of optimum currency area seeing its implications as ambiguous enough to permit a basically political decision. In the same vein, Jeffry Frieden, Political Scientist at Harvard, points out that most US economists failed to systematically include political factors in their analysis. By focusing only on the pure economics of the matter, they led themselves to unrealistic predictions. Charles Goodhart of the London School of Economics echoes a similar sentiment.

Some believed that a strong central state, which a sound euro seemingly required, would impede European economic liberalization. On the other hand, some credit the euro's success to the European Central Bank's (ECB) ability to follow a stability-oriented monetary policy without undue influence from national interests. This would not be possible without a certain amount of centralized power and decent incentives. George Selgin suggests that the ECB had an incentive to keep inflation low out of a desire to secure for the euro a prominent position in the international monetary market.

There are signs, however, that the success of the euro is beginning to unravel. Roland Vaubel points to a few institutional and procedural changes that could make the euro's future unlike its past. Or at least they bid caution to declaring EMU a success story too soon.

Direct and indirect usage

Direct usage

The euro is the sole currency of 17 EU Member States: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. These countries comprise the "eurozone", some 326 million people in total.

With all but two of the remaining EU members obliged to join, together with future members of the EU, the enlargement of the eurozone is set to continue further. Outside the EU, the euro is also the sole currency of Montenegro and Kosovo and several European micro states (Andorra, Monaco, San Marino and Vatican City) as well as in three overseas territories of EU states that are not themselves part of the EU (Mayotte, Saint Pierre and Miquelon and Akrotiri and Dhekelia). Together this direct usage of the euro outside the EU affects over 3 million people.

It is also gaining increasing international usage as a trading currency, in Cuba, North Korea and Syria. There are also various currencies pegged to the euro (see below). In 2009 Zimbabwe abandoned its local currency and used major currencies instead, including the euro and the United States dollar.

Use as reserve currency

Since its introduction, the euro has been the second most widely held international reserve currency after the U.S. dollar. The share of the euro as a reserve currency has increased from 17.9% in 1999 to 26.5% in 2008, at the expense of the U.S. dollar (its share fell from 70.9% to 64.0% in the same timeframe) and the Yen (it fell from 6.4% to 3.3%). The euro inherited and built on the status of the second most important reserve currency from the German mark. The euro remains underweight as a reserve currency in advanced economies while overweight in emerging and developing economies: according to the IMF the total of euro held as a reserve in the world at the end of 2008 was equal to USD 1.1 trillion, with a share of 22% of all currency reserves in advanced economies, but a total of 31% of all currency reserves in emerging and developing economies.

The possibility of the euro becoming the first international reserve currency is now widely debated among economists. Former Federal Reserve Chairman Alan Greenspan gave his opinion in September 2007 that it is "absolutely conceivable that the euro will replace the dollar as reserve currency, or will be traded as an equally important reserve currency." In contrast to Greenspan's 2007 assessment the euro's increase in the share of the worldwide currency reserve basket has slowed considerably since the year 2007 and since the beginning of the worldwide credit crunch related recession and sovereign debt crisis.

With the exception of Bosnia (which pegged its currency against the German mark) and Cape Verde (formerly pegged to the Portuguese escudo) all of these non-EU countries had a currency peg to the French Franc before pegging their currencies to the euro. Pegging a country's currency to a major currency is regarded as a safety measure, especially for currencies of areas with weak economies, as the euro is seen as a stable currency, prevents runaway inflation and encourages foreign investment due to its stability.

Within the EU several currencies have a peg to the euro, in most instances as a precondition to joining the eurozone. The Bulgarian Lev was formerly pegged to the German mark, other EU memberstates have a direct peg due to ERM II: the Danish krone, the Lithuanian litas and the Latvian lats.

In total, over 150 million people in Africa use a currency pegged to the euro, 25 million people outside the eurozone in Europe and another 500,000 people on Pacific islands.

Economics

Optimal currency area

In economics, an optimum currency area (or region) (OCA, or OCR) is a geographical region in which it would maximize economic efficiency to have the entire region share a single currency. There are two models, both proposed by Robert A. Mundell: the stationary expectations model and the international risk sharing model. Mundell himself advocates the international risk sharing model and thus concludes in favour of the euro. However, even before the creation of the single currency, there were concerns over diverging economies. Yet the chances of a state leaving the euro, or the chances that the whole zone would collapse, are extremely slim.

Transaction costs and risks

The most obvious benefit of adopting a single currency is to remove the cost of exchanging currency, theoretically allowing businesses and individuals to consummate previously unprofitable trades. For consumers, banks in the eurozone must charge the same for intra-member cross-border transactions as purely domestic transactions for electronic payments (e.g., credit cards, debit cards and cash machine withdrawals).

The absence of distinct currencies also removes exchange rate risks. The risk of unanticipated exchange rate movement has always added an additional risk or uncertainty for companies or individuals that invest or trade outside their own currency zones. Companies that hedge against this risk will no longer need to shoulder this additional cost. This is particularly important for countries whose currencies had traditionally fluctuated a great deal, particularly the Mediterranean nations.

Financial markets on the continent are expected to be far more liquid and flexible than they were in the past. The reduction in cross-border transaction costs will allow larger banking firms to provide a wider array of banking services that can compete across and beyond the eurozone.

Price parity

Another effect of the common European currency is that differences in prices – in particular in price levels – should decrease because of the 'law of one price'. Differences in prices can trigger arbitrage, i.e. speculative trade in a commodity across borders purely to exploit the price differential. Therefore, prices on commonly traded goods are likely to converge, causing inflation in some regions and deflation in others during the transition. Some evidence of this has been observed in specific markets.

Macroeconomic stability

Low levels of inflation are the hallmark of stable and modern economies. Because a high level of inflation acts as a tax (seigniorage) and theoretically discourages investment, it is generally viewed as undesirable. In spite of the downside, many countries have been unable or unwilling to deal with serious inflationary pressures. Some countries have successfully contained them by establishing largely independent central banks. One such bank was the Bundesbank in Germany; as the European Central Bank is modelled on the Bundesbank, it is independent of the pressures of national governments and has a mandate to keep inflationary pressures low. Member countries that join the bank commit to lower inflation, hoping to enjoy the macroeconomic stability associated with low levels of expected inflation. The ECB (unlike the Federal Reserve in the United States of America) does not have a second objective to sustain growth and employment.

Many national and corporate bonds denominated in euro are significantly more liquid and have lower interest rates than was historically the case when denominated in legacy currencies. While increased liquidity may lower the nominal interest rate on the bond, denominating the bond in a currency with low levels of inflation arguably plays a much larger role. A credible commitment to low levels of inflation and a stable debt reduces the risk that the value of the debt will be eroded by higher levels of inflation or default in the future, allowing debt to be issued at a lower nominal interest rate.

Evidence on the effect of the introduction of the euro

In conformity with the economic predictions, empirical studies have found that the introduction of the euro has had a positive impact on the movement of goods, financial assets, and people within the eurozone. In addition, countries which previously had weak currencies have benefited from lower interest rates and their firms now have easier access to capital.

Trade

The consensus from the studies of the effect of the introduction of the euro is that it has increased trade within the eurozone by 5% to 10%. On the lower bound, one study suggested an increase of 3%. A recent study estimates this effect to be between 9 and 14%. Nevertheless, a recent meta-analysis of all available studies suggests that the prevalence of positive estimates is caused by publication bias and that the underlying effect may be negligible.

Investment

Studies have found a positive effect of the introduction of the euro on investment. Physical investment seems to have increased by 5% in the eurozone due to the introduction. Regarding foreign direct investment, a study found that the intra-eurozone FDI stocks have increased by about 20% during the first four years of the EMU. Concerning the effect on corporate investment, there is evidence that the introduction of the euro has resulted in an increase in investment rates and that it has made it easier for firms to access financing in Europe. The euro has most specifically stimulated investment in companies that come from countries that previously had weak currencies. A study found that the introduction of the euro accounts for 22% of the investment rate after 1998 in countries that previously had a weak currency. The effect is however less clear for firms coming from the strong currency countries; the introduction has not been beneficial for most of them.

Inflation

The introduction of the euro has led to extensive discussion about its possible effect on inflation. In the short term, there was a widespread impression in the population of the eurozone that the introduction of the euro had led to an increase in prices. Paradoxically, this impression has not been supported by general indices of inflation, showing no major effect of the introduction of the euro. A study of this paradox has found that it is due to an asymmetric effect of the introduction of the euro on prices: while it had no effect on most goods, it had an effect on cheap goods which have seen their price round up after the introduction of the euro. The study found that consumers based their beliefs on inflation of those cheap goods which are frequently purchased. It has also been suggested that the jump in small prices may be because prior to the introduction, retailers made fewer upward adjustments and waited for the introduction of the euro to do so.

Exchange rate risk

One of the advantages of the adoption of a common currency is the reduction of the risk associated with changes in currency exchange rates. It has been found that the introduction of the euro created "significant reductions in market risk exposures for nonfinancial firms both in and outside of Europe". These reductions in market risk "were concentrated in firms domiciled in the eurozone and in non-Euro firms with a high fraction of foreign sales or assets in Europe". These changes were however "statistically and economically small".

Financial integration

The introduction of the euro seems to have had a strong effect on European financial integration. According to a study on this question, it has "significantly reshaped the European financial system, especially with respect to the securities markets [...] However, the real and policy barriers to integration in the retail and corporate banking sectors remain significant, even if the wholesale end of banking has been largely integrated." Specifically, the euro has significantly decreased the cost of trade in bonds, equity, and banking assets within the eurozone. On a global level, there is evidence that the introduction of the euro has led to an integration in terms of investment in bond portfolios, with eurozone countries lending and borrowing more between each other than with other countries.

Effect on interest rates

The introduction of the euro has decreased the interest rates of most members countries, in particular those with a weak currency. As a consequence the market value of firms from countries which previously had a weak currency has very significantly increased. The countries whose interest rates fell most as a result of the euro are Greece, Ireland, Portugal, Spain, and Italy.

Price convergence

The evidence on the convergence of prices in the eurozone with the introduction of the euro is mixed. Several studies failed to find any evidence of convergence following the introduction of the euro after a phase of convergence in the early 1990s. Other studies have found evidence of price convergence, in particular for cars. A possible reason for the divergence between the different studies is that the processes of convergence may not have been linear, slowing down substantially between 2000 and 2003, and resurfacing after 2003 as suggested by a recent study (2009).

Tourism

A study has found that the introduction of the euro has had a positive effect on tourism flows within the EMU, with an increase of 6.5%.

Exchange rates

Flexible exchange rates

The ECB targets interest rates rather than exchange rates and in general does not intervene on the foreign exchange rate markets, because of the implications of the Mundell-Fleming Model which suggest that a central bank cannot maintain interest rate and exchange rate targets simultaneously because increasing the money supply results in a depreciation of the currency. In the years following the Single European Act, the EU has liberalised its capital markets, and as the ECB has chosen monetary autonomy, the exchange rate regime of the euro is flexible, or floating.

Against other major currencies

The Euro is one of the major reserve currencies together with the United States dollar, Japanese yen, Pound sterling and Swiss franc. After its introduction in 4 January 1999 the exchange rate of the Euro against the other major currencies fell reaching its historical lowest exchange rates in 2000 (25 Oct vs the US Dollar, 26 Oct vs Japanese Yen, 3 May vs Pound Sterling). Afterwards the Euro regained and its exchange rate reached its historical highest point in 2008 (15 July vs US Dollar, 23 July vs Japanese Yen, 29 Dec vs Pound Sterling). With the advent of the current global financial crisis the exchange rates of the Euro initially fell, only to regain later (below its maximum value but above its lowest value).

Current and historical exchange rates against 29 other currencies (European Central Bank)

Current dollar/euro exchange rates (BBC)

Historical exchange rate from 1971 until now

Linguistic issues

The formal titles of the currency are euro for the major unit and cent for the minor (one hundredth) unit and for official use in most eurozone languages; according to the ECB, all languages should use the same spelling for the nominative singular. This may contradict normal rules for word formation in some languages; e.g., those where there is no eu diphthong. Bulgaria has negotiated an exception; euro in the Cyrillic alphabet is spelled as eвро (evro) and not eуро (euro) in all official documents. The European Commission's Directorate-General for Translation states clearly that the plural forms euros and cents should be used in English.

Alloys

The euro 1 and 2 coins are two-toned. The "gold" is an alloy, 75% copper, 20% zinc and 5% nickel. The "silver" is cupronickel, 75% copper, 25% nickel. The 10, 20 and 50-cent coins are a proprietary alloy known as "Nordic gold", consisting of 89% copper, 5% aluminium, 5% zinc and 1% tin. The 1, 2 and 5-cent coins are copper-coated steel fourrées.

No constituent metal is toxic to human beings. The copper alloys make the coinage antimicrobial. The nickel alloy could cause contact dermatitis in sensitive people, but this condition could only be a problem if a Euro-1 or 2 is worn next to the skin for an extended period, perhaps as jewelry. The alloys are hypoallergenic.

Notes

References

Further reading

. . Jonung, Lars and Eoin Drea. "It Can't Happen, It's a Bad Idea, It Won't Last: U.S. Economists on the EMU and the Euro, 1989-2002". Econ Journal Watch 7(1): 4-52.

External links

;Official websites

The euro – Europa

European Central Bank

*Security features

*Exchange rates

;Other

The Euro Information Site – ibiblio

The symbolic power of the euro –

Historical Documentation of EMU and the euro

Euro in crisis dossier by Radio France Internationale in English June 2010

*

Category:1999 in economics Category:Economy of the European Union Category:Karlspreis recipients Category:Monetary unions Category:Symbols of the European Union Category:Currencies of the Kingdom of the Netherlands

Coordinates	52°0′54″N4°21′24″N
Name	Nigel Farage
Honorific-suffix	MEP
Office	Leader of the United Kingdom Independence Party
Term start	5 November 2010
Predecessor	Jeffrey Titford
Term start1	27 September 2006
Term end1	27 November 2009
Predecessor1	Roger Knapman
Successor1	The Lord Pearson of Rannoch
Constituency mp2	the South East
Parliament2	European
Term start2	15 July 1999
Birth date	April 03, 1964
Birth place	Kent, England, United Kingdom
Nationality	British
Party	UK Independence Party
Spouse	Kirsten MehrGráinne Hayes (div.)
Children	4
Alma mater	Dulwich College

Nigel Paul Farage (; born 3 April 1964) is a British politician and is the leader of the UK Independence Party (UKIP), a position he previously held from September 2006 to November 2009. He is a current Member of the European Parliament for South East England and co-chairs the Eurosceptic Europe of Freedom and Democracy group.

Farage was a founding member of the UKIP, having left the Conservative Party in 1992 after they signed the Maastricht Treaty. Having unsuccessfully campaigned in European and Westminster parliamentary elections for UKIP since 1994, he was elected as the MEP for South East England in the 1999 European Parliament Election and was re-elected in 2004 and 2009.

In September 2006, Farage became the UKIP Leader and led the party through the 2009 European Parliament Election in which it received the second highest share of the popular vote, defeating Labour and the Liberal Democrats with over two million votes. However he stepped down in November 2009 to concentrate on contesting the Speaker John Bercow's seat of Buckingham in the 2010 general election.

At the 2010 General Election, Farage failed to unseat John Bercow and only received the third highest share of the vote in the constituency. Shortly after the polls opened on 6 May 2010, Nigel Farage was injured in a plane crash in Northamptonshire. The two-seated PZL-104 Wilga 35A had been towing a pro-UKIP banner when it flipped over and crashed shortly after takeoff. Both Farage and the pilot were hospitalised with non life threatening injuries.

In November 2010, Farage successfully stood in the 2010 UKIP leadership contest, following the resignation of its leader, Malcolm Pearson. Farage was also ranked 41st (out of 100) in The Daily Telegraph's Top 100 most influential right-wingers poll in October 2009, citing his media savvy and his success with UKIP in the European Elections. Farage was ranked 58th in the 2010 list compiled by Iain Dale and Brian Brivati for the Daily Telegraph.

Political career

Conservative Party

Active in the Conservative Party from his school days until the resignation of Prime Minister Margaret Thatcher in 1990, Farage left the party in 1992 when John Major's government signed the Treaty on European Union at Maastricht.

UKIP and the European Parliament

Farage became a founding member of UKIP in 1993.

He was elected to the European Parliament in 1999 and re-elected in 2004 and 2009. Farage is currently leader of the thirteen-member UKIP contingent in the European Parliament, and co-leader of the multinational eurosceptic group, Europe of Freedom and Democracy.

UKIP party leadership

On 12 September 2006, Farage was elected leader of UKIP with 45% of the vote, 20% ahead of his nearest rival. He pledged to bring discipline to the party and to maximise UKIP's representation in local, parliamentary and other elections. In a PM programme interview on BBC Radio 4 that day he pledged to end the public perception of UKIP as a single-issue party and to work with allied politicians in the Better Off Out campaign, committing himself not to stand against the MPs who have signed up to that campaign (ten in all at this moment).

At his maiden speech to the UKIP conference on 8 October 2006, he told delegates that the party was "at the centre-ground of British public opinion" and the "real voice of opposition". Farage said: "We've got three social democratic parties in Britain — Labour, Lib Dem and Conservative are virtually indistinguishable from each other on nearly all the main issues" and "you can't put a cigarette paper between them and that is why there are nine million people who don't vote now in general elections that did back in 1992."

At 10pm on 19 October 2006, Farage took part in a three-hour live interview and phone-in with James Whale on national radio station talkSPORT. Four days later, Whale announced on his show his intention to stand as UKIP's candidate in the 2008 London Mayoral Election. Farage said that Whale "not only has guts, but an understanding of what real people think". However Whale later decided not to stand and UKIP was represented by Gerard Batten. He stood again for UKIP leadership in 2010 after his successor Lord Pearson stood down.

Westminster elections

Farage had unsuccessfully contested UK parliamentary elections for UKIP five times, both before and after his election as an MEP in 1999. Under the 2002 European Union decision to forbid MEPs from holding a dual mandate, if he was ever elected to the House of Commons, he would have to resign his seat as an MEP.

When he contested the Bromley & Chislehurst constituency in a May 2006 by-election, organised after the sitting MP representing it, eurosceptic Conservative Eric Forth, died, Farage came third, winning 8% of the vote, beating the Labour Party candidate. This was the second-best by-election result recorded by UKIP out of 25 results, and the first time since the Liverpool Walton by-election in 1991 that a party in government had been pushed into fourth place in a parliamentary by-election on mainland Britain.

2010 UK General election

On 4 September 2009 Farage resigned as leader of UKIP to concentrate on his campaign to become Member of Parliament for Buckingham at Westminster in the 2010 general election. He later told Times journalist Camilla Long that UKIP internal fights took up too much time.

He stood against Buckingham MP John Bercow, the newly elected Speaker of the House of Commons, despite a convention that the speaker, as a political neutral, is not normally challenged in their bid for re-election by any of the major parties.

On 6 May, on the morning the polls opened in the election, just before eight o'clock Farage was involved in a light plane crash, suffering injuries described as non-life threatening. A spokesperson told the BBC that "it was unlikely Mr Farage would be discharged from hospital today [6 May] Although his injuries were originally described as minor, his sternum and ribs were broken, and his lung punctured. The Air Accident Investigation Branch (AAIB) report said that the plane was towing a banner, which caught in the tail plane forcing the nose down. On 1 December 2010, the pilot of the aircraft involved in the accident was charged with threatening to kill Farage. He was also charged with threatening to kill an AAIB official involved in the investigation into the accident.

Farage came third with 8,401 votes. Bercow was re-elected, and an independent who campaigned with "Flipper the Dolphin" (a reference to MPs flipping second homes) came second.

Controversies and whistleblowing

Copyright infringement

In 1999 the BBC spent four months filming a documentary about his European elections campaign but didn't show it. Farage, then head of UKIP's South East office, asked for a video and got friends to make illegal copies which were sold for £5 through the UKIP magazine. Surrey Trading Standards investigated and Farage has admitted the offence.

Expenses disclosure

In May 2009, The Guardian reported that Farage had said in a speech to the Foreign Press Association that over ten years as a member of the European Parliament he received and spent nearly £2 million of taxpayers' money in expenses and allowances, on top of his £64,000 a year salary.

The former Europe Minister, Denis MacShane, said that this showed that Farage was "happy to line his pockets with gold". Farage called this a "misrepresentation", pointing out that the money had been used to promote UKIP's message, not salary, but he welcomed the focus on the issue of MEP expenses, claiming that "[o]ver a five year term each and every one of Britain's 78 MEPs gets about £1 million. It is used to employ administrative staff, run their offices and to travel back and forth between their home, Brussels and Strasbourg." He also pointed out the money spent on the YES campaign in Ireland by the European Commission was "something around 440 million", making the NO campaign's figure insignificant in comparison.

Jacques Barrot

On 18 November 2004, Farage announced in the European Parliament that Jacques Barrot, the French Commissioner designate, had been barred from elected office in France for 2 years, after being convicted in 2000 of embezzling £2 million from government funds and diverting it into the coffers of his party. He claimed that French President Jacques Chirac had granted Barrot amnesty. Although initial BBC reports claimed that, under French law, it was illegal even to mention the conviction, the prohibition in question only applies to French officials in the course of their duties. The president of the Parliament, Josep Borrell, enjoined him to retract his comments under threat of "legal consequences".However, the following day it was confirmed that Barrot had received an 8 month suspended jail sentence in the case, and that this had been quickly expunged by the amnesty decided by Chirac and his parliamentary majority. The Commission's president, Jose Manuel Barroso admitted that he had not known of Barrot's criminal record when appointing him as a Commission vice-president. The Socialist and Liberal groups in the European Parliament then joined UKIP in demanding the sacking of Barrot for failing to disclose the conviction during his confirmation hearings.

José Manuel Barroso

During the spring of 2005, Farage requested that the European Commission disclose where the individual Commissioners had spent their holidays. The Commission did not provide the information requested, on the basis that the Commissioners had a right of privacy. The German newspaper Die Welt reported that the President of the European Commission, José Manuel Barroso had spent a week on the yacht of the Greek shipping billionaire Spiro Latsis. It emerged soon afterwards that this had occurred a month before the Commission under Barroso's predecessor Romano Prodi approved 10.3 million euro of Greek state aid for Latsis' shipping company. It also became known that Peter Mandelson, then a member of the Commission, had accepted a trip to Jamaica from an unrevealed source.

Farage persuaded around 75 MEPs from across the political divide to back a motion of no confidence in Barroso, which would be sufficient to compel Barroso to appear before the European Parliament to be questioned on the issue. The motion was successfully tabled on 12 May 2005, and Barroso appeared before Parliament at a debate on 26 May 2005. The motion was heavily defeated. A Conservative MEP, Roger Helmer, was expelled from his group, the European People's Party - European Democrats (EPP-ED) in the middle of the debate by that group's leader Hans-Gert Poettering as a result of his support for Farage's motion.

Joseph Daul

In January 2007, the French farmers' leader Joseph Daul was elected the new leader of the European People's Party–European Democrats (EPP-ED), the European Parliamentary grouping which then included the British Conservatives. The UK Independence Party almost immediately revealed that Daul had been under judicial investigation in France since 2004 as part of an inquiry into the alleged misuse of public funds worth €16 million (£10.6 million) by French farming unions." It was not suggested that Daul had personally benefited, but was accused of "complicity and concealment of the abuse of public funds." Daul accused Farage of publicising the investigation for political reasons and threatened to sue Farage, but did not do so though the court dropped all charges against him.

Prince Charles

Prince Charles gave a speech to the European Parliament on 14 February 2008, in which he called for EU leadership in the war against climate change. During the standing ovation that followed, Farage was the only MEP to remain seated and went on to describe the Prince's advisers as "naïve and foolish at best." Farage continued: "How can somebody like Prince Charles be allowed to come to the European Parliament at this time to announce he thinks it should have more powers? It would have been better for the country he wants to rule one day if he had stayed home and tried to persuade Gordon Brown to give the people the promised referendum [on the Treaty of Lisbon]." The leader of the UK Labour Party's MEPs, Gary Titley, accused Farage of anti-Royalism. Titley said: "I was embarrassed and disgusted when the Leader of the UK Independence Party, Nigel Farage, remained firmly seated during the lengthy standing ovation Prince Charles received. I had not realised Mr Farage's blind adherence to right wing politics involved disloyalty and discourtesy to the Royal Family. He should be thoroughly ashamed of himself and should apologise to the British people he represents." also asserting that Van Rompuy's "intention is to be the quiet assassin of European democracy and of European nation states." Van Rompuy commented afterwards, "There was one contribution that I can only hold in contempt, but I'm not going to comment further." The President of the European Parliament, Jerzy Buzek, said after his meeting with Farage:- 'I defend absolutely Mr Farage's right to disagree about the policy or institutions of the Union, but not to personally insult our guests in the European Parliament or the country from which they may come. [. . .] I myself fought for free speech as the absolute cornerstone of a democratic society. But with freedom comes responsibility - in this case, to respect the dignity of others and of our institutions. I am disappointed by Mr Farage's behaviour, which sits ill with the great parliamentary tradition of his own country. I cannot accept this sort of behaviour in the European Parliament. I invited him to apologise, but he declined to do so. I have therefore - as an expression of the seriousness of the matter - rescinded his right to ten days' daily allowance as a Member'.

Footnotes

References

2002 amnesty law

Penal Code, articles L133-9, L133-10, L133-11

External links

Profile at European Parliament website

Official website of the UK Independence Party in the European Parliament

Political group in the European Parliament

Category:1964 births Category:Living people Category:United Kingdom Independence Party politicians Category:Members of the European Parliament for English constituencies Category:Critics of the European Union Category:Anti-globalist activists Category:People from Farnborough, London Category:Old Alleynians Category:Leaders of the United Kingdom Independence Party Category:British libertarians Category:UK Independence Party MEPs Category:MEPs for the United Kingdom 1999–2004 Category:MEPs for the United Kingdom 2004–2009 Category:MEPs for the United Kingdom 2009–2014

Coordinates	52°0′54″N4°21′24″N
Name	The Ruts
Landscape	yes
Background	group_or_band
Origin	London, England
Genre	Punk rockNew WavePost-punk
Years active	1977–1980, 2007
Label	People UniteVirgin RecordsBohemianROIR
Associated acts	Ruts D.C.
Url	The official Ruts Myspace page
Past members	Paul FoxMalcolm OwenGlen David "Dave" RuffyJohn "Segs" JenningsGary Barnacle

The Ruts were a reggae-influenced British punk rock band, notable for the 1979 Top 10 hit "Babylon's Burning", and an earlier single "In a Rut", which was not a hit but was much played and highly regarded by the UK BBC Radio 1 disc jockey, John Peel.

Career

After meeting at the Deeply Vale Free Festival, The Ruts were formed on 18 August 1977, the band consisted of Malcolm Owen (vocals), Paul Fox (guitar), John "Segs" (sometimes "Seggs") Jennings (bass) and Dave Ruffy (drums). As part of Misty in Roots People Unite collective based in Southall in west London, the band were active in anti-racist causes and played a number of benefits for Rock Against Racism. Prophetically, the B-side "H-eyes" of "In a Rut" was a song against heroin use, and two other songs, "Dope for Guns" from the album The Crack, plus reggae lament "Love in Vein" ("don't want you in my arms no more") were also anti-drug songs. A year later, The Damned wrote a song, "The Limit Club", about their deceased friend which mentions the "velvet claws" that Fox talked about with reference to Owen's heroin addiction.

On 22 August 1980, the band's sixth and final single was released, "West One (Shine On Me)". Co-produced by the band themselves as they were "starting to get pissed off with the music business" (according to Jennings in an audio interview on "Bustin' Out"), the song featured brass and segued into a dub remix. The B-side was "The Crack" a lighthearted mini-pastiche of their debut album, recorded in a number of musical styles. It peaked at #43 in the UK Singles Chart.

Virgin issued a second album later in 1980, a compilation of singles, demos and live tracks entitled Grin & Bear It. The three live tracks - "S.U.S.", "Babylon's Burning" and "Society" had been recorded for Chorus, a French TV show, in January of that year. When this was later reissued on CD, early tracks "Stepping Bondage", "Lobotomy" and "Rich Bitch" were added.

1980 also saw the collaboration of the remaining band members with Kevin Coyne on one half of his double album, Sanity Stomp.

The band continued as Ruts D.C. (D.C. standing for the Latin term Da Capo, meaning 'back to the beginning') in a different musical vein.

On 25 January 2008, Henry Rollins presented, The Gig, a short film about the 2007 benefit gig at London's Shepherd's Bush Empire. The event, in support of Macmillan Cancer Support, was accompanied by live performances from Alabama 3, T. V. Smith, members of The Members, The Damned's Captain Sensible, and Beki Bondage.

In June 2008, another compilation, Original Punks, was released by Music Club Deluxe in the UK. The two disc set included demos, alternate versions and live tracks plus songs recorded by Ruts D.C.

Discography

Albums

The Crack (September 1979: Virgin, V 2132) UK #16

Grin & Bear It (part-compilation) (October 1980: Virgin, V 2188) UK #28

Animal Now (as Ruts D.C.) (May 1981: Virgin)

Rhythm Collision (as Ruts D.C.) (July 1982: Bohemian)

BBC Radio 1 Live In Concert (Windsong International) split with Penetration

Selective compilation albums and E.P.s

The Peel Sessions (December 1986: Strange Fruit)

Peel Sessions – Complete Sessions 1979-1981 (May 1990: Strange Fruit)

Demolition Dancing (1994: Receiver) - mostly live material, and including two tracks with The Damned: "Shakin' All Over" and "In a Rut"

Something That I Said: The Best of the Ruts (March 1995: Virgin)

Bustin’ Out: The Essential Ruts Collection (June 2001: EMI)

Singles

"In a Rut" / "H-Eyes" (May 1978: Record label:People Unite, SJP 795 & RUT 1)

"Babylon's Burning" / "Society" (June 1979: Virgin, VS 271; also released as a 12 inch single) UK #7

"Something That I Said" / "Give Youth a Chance" (August 1979: Virgin, VS 285) UK #29

"Jah Wars" / "I Ain't Sofisticated" (November 1979: Virgin, VS 298)

"Staring At The Rude Boys" / "Love in Vain" (April 1980: Virgin, VS 327) UK #22

"West One (Shine On Me)" / "The Crack" (August 1980: Virgin, VS 370) UK #43

"Different View" / "Formula Eyes" (as Ruts D.C.) (February 1981: Virgin, VS 396)

"Whatever We Do" / "Push Yourself – Make It Work" (as Ruts D.C.) (July 1982: Bohemian, B 02)

"Weak Heart" / "Militant" / "Accusation" (as Ruts D.C.) (March 1983: Bohemian, B 03)

"Stepping Bondage" / "Lobotomy" / "Rich Bitch" (as Ruts) (May 1983: Bohemian, B 04)

Audio sample

See also

List of British punk bands

List of Peel sessions

List of performers on Top of the Pops

Music of the United Kingdom (1970s)

References

External links

The official Ruts Myspace

The Ruts on www.punk77.co.uk

The Ruts on Punkmodpop

Paul Fox obituary, The Times, 27 October 2007

Category:British reggae musical groups Category:Musical groups established in 1977 Category:Musical groups disestablished in 1983 Category:1970s music groups Category:1980s music groups Category:Reachout International Records recording artists Category:Reggae rock groups Category:English punk rock groups Category:People from Southall