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Euro Currency Markets Essay

1275 words - 5 pages

University of PhoenixJanuary 6, 2010Euro currency markets are composed of the markets that the euro is the dominant currency. These markets are primarily composed of the 11 comprising members of the European Union, but extend to foreign exchange and online markets globally. By exploring the history of the euro, global financing, and exchange rate mechanisms, it will be much easier to identify the recent powerful impact of this "new" currency.History of the EuroThe concept of a common market in Europe has been the goal of the six founding nations of the European Union, Belgium, France, Germany, Italy, Luxembourg and the Netherlands, since the end of the Second World War. The Treaty of Rome in 1957 created the European Economic Community (EEC), and almost 20 years later Denmark, Ireland and the United Kingdom join the European Union (Europa, n.d.).The following is an excerpt from the Europa website, which clearly summarizes the events leading to the enlargement and stabilization of the EU, and therefore the euro.In 1981, Greece becomes the 10th member of the EU and Spain and Portugal follow five years later. In 1987 the Single European Act is signed. This is a treaty which provides the basis for a vast six-year programme aimed at sorting out the problems with the free-flow of trade across EU borders and thus creates the 'Single Market'. There is major political upheaval when, on 9 November 1989, the Berlin Wall is pulled down and the border between East and West Germany is opened for the first time in 28 years, this leads to the reunification of Germany when both East and West Germany are united in October 1990.With the collapse of communism across central and eastern Europe, Europeans become closer neighbours. In 1993 the Single Market is completed with the the 'four freedoms' of: movement of goods, services, people and money. The 1990s is also the decade of two treaties, the 'Maastricht' Treaty on European Union in 1993 and the Treaty of Amsterdam in 1999. People are concerned about how to protect the environment and also how Europeans can act together when it comes to security and defence matters. In 1995 the EU gains three more new members, Austria, Finland and Sweden. A small village in Luxembourg gives its name to the 'Schengen' agreements that gradually allow people to travel without having their passports checked at the borders. Millions of young people study in other countries with EU support. Communication is made easier as more and more people start using mobile phones and the internet.The euro is the new currency for many Europeans. 11 September 2001 becomes synonymous with the 'War on Terror' after hijacked airliners are flown into buildings in New York and Washington. EU countries begin to work much more closely together to fight crime. The political divisions between east and west Europe are finally declared healed when no fewer than 10 new countries join the EU in 2004. Many people think that it is time for Europe to have a...

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