Europe is about to accomplish a major economic and political ambition. With the introduction of euro banknotes and coins on January 1st, 2002, European Monetary Union (EMU) - a vision that at times appeared tantalisingly elusive - will finally be completed.

For the European Union, this marks the completion of a project that had its origins in the Schuman Plan of 1950. The concept of economic and monetary union was originally endorsed at the Hague Summit of European leaders in 1969. Although the first blueprint, contained in the Werner Report of 1970, did not go ahead, the project subsequently developed through a number of stages: the formation of the European Monetary System (EMS) in 1979; the Single European Act in 1986; the Delors Report in 1989; the Maastricht Treaty in 1992; and the Madrid European Council in 1995.

At the institutional level, progress towards EMU was supported by the establishment of the European Monetary Institute in 1994 and the founding of the European Central Bank (ECB) in 1998.

I have been fortunate enough to have participated in the events that paved the way towards EMU, through service on the governing bodies of both of these institutions.

For the Republic, January 1st marks the culmination of a process of closer economic integration with the European mainland. This began with our membership of the then EEC in 1973 and progressed through our participation in the EMS in 1979.

Within a matter of weeks, our links with the other European currencies resulted in a break in the parity link between the Irish pound and sterling. Now our monetary integration with Europe is almost complete; we are on the verge of sharing common banknotes and coins with some 300 million other Europeans in 11 other countries.

For the Central Bank of Ireland, January 2002 marks the accomplishment of a major undertaking in banknote and coin production and distribution.

We started production of euro coins at the Central Bank's currency centre in Sandyford in September 1999. This was followed in June 2000 by the printing of the first banknotes. Since that time, more than one billion coins have been minted and almost 300 million banknotes have been printed by the Bank's staff, who can rightly feel proud of their achievement.

Production of the necessary euro cash, however, was only half the battle. Its distribution posed a further challenge. Beginning in June 2001, euro coins were moved from the currency centre to special depots for packaging. Transfers to bank branches and large retailers began in September and by mid-December some 1,700 deliveries had been made.

Security concerns were uppermost in the distribution of euro banknotes, which began in November, and I would like to express my gratitude to the Garda, the Army and the cash-in-transit companies for their wholehearted support in this operation.

With the introduction of euro notes and coins, the benefits of EMU become more real for the general public.

Although the introduction of the euro in January 1999 removed the uncertainty created by exchange-rate fluctuations between euro-zone countries, people still required foreign currencies to travel within the euro area. This is now in the past.

Irish citizens can now use their domestic currency in 11 other EMU countries. Banknotes are identical in all these countries and, although euro coins have national features on one side, they are all equally acceptable throughout the euro area.

As well as the culmination of years of effort, January 1st marks a new beginning. The 12 countries that will introduce the euro banknotes and coins are only the advance party in a design which, I am confident, will ultimately embrace most of Europe.

As the benefits of the common currency become apparent to the citizens of the other EU countries - Britain, Denmark and Sweden - public opinion in these countries is likely to change.

Ease of travel between countries, the absence of currency-exchange charges and greater price transparency, leading to benefits for the consumer through increased price competition, will all play a part.

As the EU pushes its frontiers towards the East, the list of potential members of EMU will grow. Although their first objective is EU membership, several accession countries are also making preparations for EMU membership. Some - such as Estonia, Lithuania and Bulgaria - have already fixed their currencies to the euro.

The introduction of euro banknotes and coin is a milestone in the evolution of a new Europe. The European Union is one of the great success stories of modern times. Despite the obstacles and disappointments, the commitment to progress has been cast-iron.

One of the cardinal principles underlying this commitment is that all nations, big and small, are treated with equal respect. Another great badge of the new European identity is the commitment to social protection.

On January 1st, we take another great step forward. For the first time, the ordinary citizen will be able to relate to the euro as his or her own currency.

Mr Maurice O'Connell is governor of the Central Bank of Ireland.