EUROPE UNVEILS EURO WITH FANFARE.

Byline: Paul Ames Associated Press 

Europe's leaders proclaimed a new era Thursday as 11 nations merged currencies to create the euro, a shared money they say will boost business, underpin unity and strengthen their role in world affairs.

Finance ministers from the euro nations popped champagne corks shaped in the euro's ``e'' symbol Thursday, setting off a frantic weekend for financial workers who are adapting computer systems and converting stocks, bonds and bank accounts into euros.

At the stroke of midnight on New Year's Eve in Brussels, after years of preparation, the euro became the common currency of Germany, France, Italy, Spain, the Netherlands, Belgium, Austria, Portugal, Finland, Ireland and Luxembourg.

The event was hailed as a historic turning point, creating a powerful new force in the world economy and fulfilling the post-war dreams of union among nations whose divisions twice this century dragged the planet into its bloodiest wars.

The new currency is worth 1.95583 German marks, 6.55957 French francs, 1,936.27 Italian lire and 166.386 Spanish pesetas. When markets open after the long holiday weekend, the euro is expected to start trading at about $1.1665, 133 Japanese yen and 70 British pence.

Although euro notes and coins won't be issued to replace Irish pounds, Portuguese escudos, Austrian schillings and the rest until 2002, the new currency will immediately come into use for noncash transactions ranging from government bond issues to credit card and check purchases.