This website uses cookies to ensure you have the best experience. Learn more

The Euro Essay

2258 words - 9 pages

The Euro

To most people in the United States hearing the word Euro brings about blank stares. Ask this same question in England or another European country and it means bringing Europe together under one common currency. The Euro can be defined as the common monetary system by which the participating members of the European Community will trade. Eleven countries Germany, France, Spain, Portugal, Ireland, Austria, the Netherlands, Belgium, Luxembourg, Finland and Italy will comprise the European Economic Monetary Union that will set a side their national currency and adopt the Euro in 2002. A new National bank, based in Frankfurt Germany, will be constructed and the interest rates that control the economies of these nations will be in the hands of this new system. It is indeed a great experiment, being masterminded in Frankfurt, one that will be felt through out Europe as well as the rest of the world.1

The combined countries, now more commonly referred to as Euroland, will fall under one national bank. This bank, the European Central Bank, will determine the economic fate of the entire “Union”. The merging of eleven currencies is a daunting and somewhat lethal task. The ECB is comprised of seventeen members, each having one vote within the governing council. What has most Europeans concerned is the ECB’s secrecy of conducting business. There is no voting record nor will there be published minutes of the meeting that take place. Wim Duisenberg president of the ECB and a native Dutchman stated that he wanted the ECB to be one of the most open banks in the world.1 When BBC reporter Steve Levinson confronted him about this in Frankfurt Germany Wim replied
I reconcile these two positions by not defining openness as publishing everything that will be available, but by defining openness as explaining every decision, every consideration. Also the pros and cons and to be very open about that and to be frequent and immediate in that openness. (Livinston, Euroland 3)

Why does the ECB operation so much secrecy? Is does not want economic policy moved by political influence. In January of this year the Bank of Ireland became a regional branch of the ECB. Morris O’Connell, its governor, supports the ECB’s tight lips stating I don’t think it’s appropriate that you should be announcing how each person may have voted. I think you’re creating other pressures then, you’re creating pressure on individual members to reflect just the national viewpoint. Where we are required under this treaty to take a European perspective on things. (Livinson 5)

This treaty O’Connell refers to is the Maastrich Treaty. It is the foundation for holding together the ECB and the fait of the Euro. It was constructed in such a way that is completely out of reach of the politicians. This way, national views of one country will not effect the entire economic view of the European Economic Monetary Union. One view is certain now, the Euro will happen and...

Find Another Essay On The Euro

The Future of The Euro Essay

2557 words - 10 pages unit, the Euro, once one of the strongest currencies in the world could become obsolete to the global economy.The Euro was brought to life on February 7th, 1992 when the Treaty of the European Union, also known as Treaty of Maastricht was signed (Maastricht). The treaty brought together eleven of the countries that make up the current Union and introduced a new monetary unit, the euro. The 1st of January 2002 saw the Euro coins and notes become

The Euro Versus the Dollar Essay

1322 words - 5 pages History of the Euro “The introduction of the euro will represent the most dramatic change in the international monetary system since President Nixon took the dollar off gold in 1971 [and when] the era of flexible exchange rates began…the euro is likely to challenge the position of the dollar [and hence] this may be the most important event in the history of the international monetary system since the dollar took over from the pound the role

The Euro & Whether Britain Should Join the Euro ?

4571 words - 18 pages The Euro originated from different treaties and several changes in the governing of Europe's economy. All the treaties were prepared and signed by the members of the European council. The European council consisted of the Heads of State or Government of each member states of the European union. The European Economic Council {ECC} was created by 1957 through the Treaty of Rome. The treaty was signed by Belgium, France, West Germany, Italy

Macroeconomic flaws in the Euro

2050 words - 8 pages Fundamental Macroeconomic Flaws in the Euro Five years ago, the biggest thing in economic and international news was the introduction of the new European currency, the Euro, into circulation and into the pockets of the consumers of the participating countries within the European Monetary Union. In an attempt to unite Europe and to form a dominant currency to rival the US dollar, Europe locked their exchange rates and went full steam with

A History of the Euro

2364 words - 10 pages The EU and its single currency system referred to as the euro, is known today as one of the world’s most important currencies and is considered to be one of Europe’s most paramount achievements. The euro was launched January 1st 1999 automatically becoming the currency of more than 300 million people. From 1999 to 2002, the euro was classified as an invisible currency; merely utilized for electronic payments as well as accounting purposes

The Impacts of the Euro-Zone Crisis

1587 words - 6 pages The Euro-zone is an economic and monetary union (EMU), comprised 17 European Union (EU) member states, which have all adopted the Euro as their common currency and sole legal tender. Within the zone, monetary policies are the responsibility of the European Central Bank (ECB), governed by a president with a board, comprised national central banks leaders. Fiscal policy is less centralized, but restricted by the previously agreed upon rules within

The Euro and the Gold Standard Compared

2884 words - 12 pages Introduction This paper will analyse the monetary contradistinctions of the fixed exchange rate regimes of the classical gold standard (1870s - 1914) and the Economic and Monetary Union of the European Union. In relation to each other country within the currency union, the EMU is to a degree homologous to the classical gold standard. I see not the similarity in the nature of the unit of account (as the euro is fiat, as opposed to gold), but in

Why was the Euro Disney's Land failed?

5135 words - 21 pages 1. Introduction1.1 PurposeThe purpose of this report is to analyse problems of Euro Disney's Land and recommends alternatives and solutions.1.2 ScopeIn examining the problems and recommending the solutions, the report considers causes of the problems. Not only does it provide alternatives and solutions, but also presents issues that Disney should consider when next entering a foreign market.1.3 MethodIn order to complete this report, information

Why the UK Should Convert to the Euro

1815 words - 8 pages Taylor Ludlow Mr. Joshua Williamson ELA 9H Adv 7 April 2014 Why the UK should convert to the euro People have always wondered why the UK still uses the pound sterling. The UK, being a member of the European Union, should have converted to the euro by now. While the pound sterling gives the country its uniqueness and allows them to remember the history of their country, it does not have as many advantages as the euro. So, although the pound

The Euro And Its Impact On The U.S. Economy

1293 words - 5 pages The Euro and its Impact on the U.S. Economy The euro is the official currency of the following 12 European nations: Belgium, Germany, Greece, Spain, France, Luxembourg, Ireland, Italy, The Netherlands, Austria, Portugal, and Finland. Although it has been the official currency since January 1,1999 it became physical tender which can be used by all participating countries on January 1,2002. The introduction of the euro into the world was truly a

The Adoption of the Euro Case: Sweden and England

2525 words - 11 pages Europe consists of several sovereign countries which use their own currency prior to the creation of the European Union in 1993. The EU has been built through several binding treaties and laws that harmonize European states when it comes to political issues and economic issues. It was until the Maastricht Treaty of 1999 that established a single currency known as the euro. The euro’s purpose is to have a single currency in Europe, similar to a

Similar Essays

The Euro Essay

1304 words - 5 pages The Euro The new international currency of the European Economic union, euro became the national currency on January 1 2002. In this union where only euro is valid as currency includes Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, Netherlands, Portugal and Spain and their national currencies will cease to exist. Before the euro formation, there existed the gold standard and the Bretton Woods system. Both

Will The Euro Survive? Essay

1495 words - 6 pages political union; the European Union is formed. In December 2012, the European Union awarded the Nobel Peace Prize for its “historical accomplishments”. Nevertheless, the member states of the European Union are still facing the crisis that started in the Eurozone since 2009. One of the major causes of the crisis is the common currency – the euro which has weak structural formation. The creation of a currency, the euro, is one of the major parts of the

America And The Euro Essay

4223 words - 17 pages America and the Euro America’s relationship with Europe has long been the cornerstone of our economic and foreign policy. Today, America’s fortunes remain fundamentally linked with Europe’s. Needless to say, we have a security interest in what happens in Europe, but we also have a vital economic stake. Together, the United States and the EU produce close to half of all goods and services in the world and account for over half of all world

Euro Disney The Failure Essay

1324 words - 5 pages Walt Disney is the world leader in family entertainment and one of the most valuable brands in the world. Recently, Walt Disney has decided to open up a Disney Theme Park in Hong Kong China, which will be the first theme park in China. Since the opening of Euro Disney, the Walt Disney Company has learned to take into consideration important determinants so that their investment will not be a huge financial loss. Unfortunately, Since Disney did