The Euro
The road leading to a European single currency began more than fifty years ago with the formation of the OEEC (Organization for European Economic Cooperation) in 1948 and the road still continues today. The implementation of this new European currency is about to take affect and even though this issue seems to be a very mild debate amongst other things happening in the world today, it could have a very negative affect on the way we, as Americans, and the rest of the world do business. Not only will these dramatic changes alter our business it will also have a major affect on our economy: i.e. currency, interest rates, global trade, U.S. jobs, and investments. This viewpoint, however, is only of countries or regions outside of Europe. When looking from the inside you will find that this conversion is going to be a very positive thing for the European economy but despite this it could also eventually lead to political and maybe even military clashes with the United States. The unity of Europe has already begun and The European Union is about to be given a single currency. With the release of the Euro all other currencies that the European countries are currently operating under will be obsolete. The Eur
So now one can see why this is such a big deal in the European economy: all goods will be priced the same, the Euro will become a very valuable currency, and, depending on the exchange rate in the conversion, goods will be cheaper. In response to this rejection of the United Europe proposition, citizens in favor of the change have set up groups to influence and keep other citizens informed about the advantages of it. In order for all the countries to make the deadline of the complete conversion, it will cost them by converting their old bills and coins to new ones. From my personal standpoint, I am almost caught in the middle of this issue. There will be mass unemployment, challenges of globalization, and the crumble of the European Union unless the European Commission is transformed into a real European Government. Therefore EU countries may have to increase their intra-EU transfer payments to help regions in need. With the conversion to the Euro people will be able to spend the same money wherever they go and not have to worry about if they're getting their money's worth. Another reason why countries are against the common currency is that since the business cycles across countries do not move in synchronicity, Europe may not constitute an "optimum currency area". This is just the case in the debate about the Euro. Despite the advantages the Euro brings to the citizens and the economy, some countries just want to have no part in it like Denmark, Sweden, and even the United Kingdom. One group by the name of Euraction is even calling for a European Constitution for the unity of a single European country with full decision-making abilities, claiming that Europe will not be able to manage the birth of the Euro without it. Cons Some of the main reasons that other countries and even some of the European countries who are considering to join the union but still remain reluctant are: the cost of introduction, non-synchronicity of business cycles, and fiscal policy spillovers. The United States has come to the conclusion that one single business running the entire market, having no legitimate competition, and not encouraging competition is wrong and has therefore condemned it by law. Europe is primarily made up of a numerous amount of very small countries, so many that a person can drive from country to country just like driving from city to city anywhere else in the world.
Common topics in this essay:
Government Cons,
European Union,
Economic Cooperation,
European Constitution,
Euro United,
United Europe,
,
United Pros,
European Commission,
United Kingdom,
european union,
fiscal policy spillovers,
business cycles,
european countries,
european economy,
single currency,
strongly believe,
fiscal policy,
policy spillovers,
common currency,
it's own,
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Acceptance Essays
