100 Drachmai – Greece

In 1998, Greece was in a critical and determined phase of its journey toward adopting the euro. The country had formally applied to join the European Economic and Monetary Union (EMU) but faced significant hurdles, as it did not meet the Maastricht Treaty's convergence criteria on inflation, budget deficits, public debt, and exchange rate stability. The situation was characterized by intense pressure and sweeping austerity measures imposed by the government of Prime Minister Costas Simitis, who prioritized "modernization" and European integration. His administration implemented strict fiscal policies, including cuts to public spending and increased taxes, in a rigorous effort to rein in the budget deficit and bring key economic indicators within the required limits.

The currency situation was inherently dual-faceted: the official currency remained the Greek drachma, but its management was entirely subordinated to the goal of euro accession. Since 1994, the drachma had participated in the European Exchange Rate Mechanism (ERM II), which pegged it within a narrow band against the European Currency Unit (ECU), the precursor to the euro. This required the Bank of Greece to maintain strict monetary discipline to prevent devaluation. The central focus was on achieving macroeconomic stability and convincing European partners, particularly a skeptical Germany, that Greece's convergence was sustainable and not merely a short-term statistical manipulation.

Ultimately, 1998 was a year of suspense that ended in disappointment. In May of that year, the European Commission and the European Monetary Institute assessed that Greece had not fulfilled the necessary conditions for inclusion in the first wave of the eurozone, set to launch in January 1999. The primary obstacles were an inflation rate still above the reference value and concerns over the sustainability of its fiscal adjustment and the high public debt, which remained well over 100% of GDP. Consequently, Greece was excluded from the initial membership, a setback that further galvanized the government's efforts, which would ultimately prove successful for entry in 2001.