It eases the mechanism of moving products, services, workforce and capital within the Europe. The basic aim of EU is to encourage and increase economic, social, political, trade, defense and security cooperation between the member countries.
The member countries of European Union consists of 27 independent states and these are, Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. European Union comprises of 18 % of the world's total trade (Europa 2009).
The first steps towards the EMU were only made in 1992, when the members of the EC met in Maastricht. A timetable for the development of the EMU was created there. In the years after the treaty the preparation began. Euro is an authorized currency of the 16 member countries of European Union. These states called Euro Zone includes, Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. UK refused to join the Exchange Rate mechanism because of the instability of the system. Euro was introduced to the world as a transactional currency of European countries on 1 January 1999 substituting the European Currency Unit (ECU). ...