The Euro: Past, Present and Future
Bryan Cane
Carl Christopher
Econ 5113
05/05/11
The Euro
Past, Present and Future
Introduction
On the 1st of January 1999 the nations of Europe made their individual national currencies denominations of one single currency (the Euro). The Euro-system (European Central Bank (ECB) and the national banks of the participating countries) was now responsible for the monetary policy for the European area. “The Euro was implemented with the goal of creating a more stable European economy” (History, 2011).The historic and challenging task of introducing a single European currency would have great effects and the political and economic climate of that area as well the international monetary system on a whole. The idea of a single currency first came about as an attempt to bring the European region together. The thinking was; a united economic system would reduce the risk of war and discontentment between the countries. Through economic integration, perhaps political differences could be settled and even open the door to integration in other areas (The Euro, 1999).
The European Union (EU) hoped to create economic stability, good competition, and business opportunity in the European markets. They also sought to stimulate growth in Europe’s economy and give the region a more concrete footing in the economy of the world with a unified economic and political front. The participating nations are Belgium, Germany, Ireland, Spain, France, Italy, Luxembourg, the Netherlands, Austria, Portugal, Finland, Greece, Slovenia, Cyprus, Malta and Slovakia. Other countries like Sweden, Bulgaria, Poland, Hungary and the Czech Republic are making plans to adapt the euro also adapt the euro. However Denmark and Great Britain have chosen not be a part of this monetary union (Hermes, 2011).
Some of the advantages of this new currency are the low costs of financial transactions, the free movement of capitol, the free moment of people throughout the region and the notable
Carl Christopher
Econ 5113
05/05/11
The Euro
Past, Present and Future
Introduction
On the 1st of January 1999 the nations of Europe made their individual national currencies denominations of one single currency (the Euro). The Euro-system (European Central Bank (ECB) and the national banks of the participating countries) was now responsible for the monetary policy for the European area. “The Euro was implemented with the goal of creating a more stable European economy” (History, 2011).The historic and challenging task of introducing a single European currency would have great effects and the political and economic climate of that area as well the international monetary system on a whole. The idea of a single currency first came about as an attempt to bring the European region together. The thinking was; a united economic system would reduce the risk of war and discontentment between the countries. Through economic integration, perhaps political differences could be settled and even open the door to integration in other areas (The Euro, 1999).
The European Union (EU) hoped to create economic stability, good competition, and business opportunity in the European markets. They also sought to stimulate growth in Europe’s economy and give the region a more concrete footing in the economy of the world with a unified economic and political front. The participating nations are Belgium, Germany, Ireland, Spain, France, Italy, Luxembourg, the Netherlands, Austria, Portugal, Finland, Greece, Slovenia, Cyprus, Malta and Slovakia. Other countries like Sweden, Bulgaria, Poland, Hungary and the Czech Republic are making plans to adapt the euro also adapt the euro. However Denmark and Great Britain have chosen not be a part of this monetary union (Hermes, 2011).
Some of the advantages of this new currency are the low costs of financial transactions, the free movement of capitol, the free moment of people throughout the region and the notable