The European Currency Unit — origin and legacy

The European Currency Unit, universally known as the ECU, was a basket currency used by the European Community from 1979 until 1999. It was not physical money that could be held in one's hand, but rather a unit of account used for financial transactions, budgeting, and accounting within the European monetary system. The ECU preceded the Euro and laid the technical and political groundwork for Europe's single currency.

The ECU was created as part of the European Monetary System (EMS), established in March 1979. Its value was calculated as a weighted average of the currencies of the European Community member states. Each national currency contributed to the basket according to the economic size of its country. The European Central Bank provides detailed historical documentation on the ECU and the European Monetary System.

What was the ECU used for?

The ECU basket composition

The ECU basket initially included the currencies of nine member states. As the European Community expanded, new currencies were added to the basket. The German Deutsche Mark carried the largest weight, reflecting Germany's dominant economic position. The Belgian Franc, French Franc, Dutch Guilder, Italian Lira, British Pound, Danish Krone, Irish Pound and Luxembourg Franc completed the original basket.

The birth of the Euro — Europe's single currency

The transition from the ECU to the Euro was one of the most ambitious monetary undertakings in history. The Maastricht Treaty of 1992 set the framework for Economic and Monetary Union and established convergence criteria that member states had to meet before adopting the single currency. On 1 January 1999, the Euro was introduced for financial transactions at a fixed rate of 1 Euro = 1 ECU. Three years later, on 1 January 2002, Euro banknotes and coins entered circulation in twelve countries simultaneously.

The Eurozone today

The Eurozone currently comprises 20 of the 27 EU member states. The European Central Bank (ECB), headquartered in Frankfurt, is responsible for monetary policy across the Eurozone — setting interest rates, managing the money supply, and maintaining price stability.

• The Euro is the second most traded currency in the world after the US Dollar.
• More than 340 million EU citizens use the Euro as their daily currency.
• The ECB's primary mandate is to maintain price stability — targeting inflation close to 2%.
• Euro banknotes feature architectural styles from different periods of European history.
• Each Eurozone country issues its own national side of Euro coins, while the common side is shared.

Brussels — capital of European institutions

Brussels is home to the majority of the European Union's main institutions and serves as the de facto capital of the EU. The city hosts the European Commission, the Council of the European Union, and the European Parliament (which also sits in Strasbourg and Luxembourg). This concentration of institutions makes Brussels one of the most international cities in the world.

Key institutions based in Brussels

• The European Commission — the EU's executive body, responsible for proposing legislation and implementing decisions.
• The Council of the European Union — where ministers from all EU member states meet to adopt laws and coordinate policies.
• The European Parliament — the directly elected legislative body of the EU.
• The European External Action Service (EEAS) — the EU's diplomatic service.
• Hundreds of EU agencies, delegations, and international organisations with Brussels offices.

Living in Brussels as a European expatriate

Brussels attracts tens of thousands of European and international expatriates every year, drawn by positions at EU institutions, international organisations, NATO, multinational companies, and the broader diplomatic ecosystem. For newcomers, settling into Brussels requires navigating Belgian administrative procedures, the housing market, and the specificities of Belgian rental law.

Finding accommodation in Brussels

The Brussels housing market is competitive, particularly in the European Quarter and surrounding communes such as Ixelles, Etterbeek, and Woluwe. Rents for a one-bedroom apartment in the European Quarter range from €900 to €1,400 per month. Belgian rental law requires tenants to provide a security deposit — in Brussels, this is capped at two months' rent — before moving into a property.

Rather than immobilising this capital in a blocked bank account, an online rental guarantee allows expatriates to obtain the required guarantee without tying up their savings. This solution is widely used by EU staff and international newcomers in Belgium.

Administrative steps for new arrivals

• Register at your local commune within 8 working days of arrival.
• Apply for a Belgian identity card or residence permit (electronic foreigners card).
• Open a Belgian bank account — required for rental payments and salary domiciliation.
• Enrol in a Belgian health insurance fund (mutualité/ziekenfonds).
• EU institution staff benefit from specific administrative arrangements — check with your institution's HR department.