StudentShare solutions
Triangle menu

Pros and Cons of European currency union - Essay Example

Nobody downloaded yet

Extract of sample
Pros and Cons of European currency union

One of the biggest advantages of Euro is that it saves a lot of time and effort of the travelers who choose to travel with Europe. For instance if there is a Soccer game in Spain which a Greek citizen wants to witness, he/she can just straight away catch a flight and reach the Soccer stadium in Spain and watch the game. There is no need to covert the currency into some other currency. The same has resulted in saving a lot of time and effort of the European Citizens. This was not the case prior to the introduction of Euro. The people had to exchange money every now and then to meet their demands but after the introduction things have changed for better.
The introduction of Euro has brought in many significant changes in the European Economy. The most noticeable of them all is the economic integrity brought by the introduction of the Euro. The positive effects are not restricted to economy but they also positively influence the political climate in the European countries. This paper will throw light upon the benefits and the problems of the European single currency, which is Euro. In addition to this the paper will also focus upon the affect on other currencies by the present rise in the value of the Euro.
"Having a single currency and an economic and monetary union strengthens Europe's role in international fora and organizations like the International Monetary Fund, World Bank, and Organization for Economic Co-operation and Development." (The Euro & You). Euro strengthens the position of all the European countries, having a single currency helps a lot in the growth of the country and in this particular case Europe on the whole. Euro is very frequently used in international trade; it has very quickly become a part and parcel of the lives of many businessmen who carry out trade at large scales. Countries also have started using Euro as the currency for International trade. "A single currency makes Europe a strong partner to trade with and facilitates access to a genuine single market for foreign companies, who will benefit from lower costs of doing business in Europe." (The Euro & You).
Another major advantage is the clarity in prices whenever an European citizen travels to another European country it becomes very easy to compare and buy the products of his/her choice; this facility was not available to the citizens prior to the launch of the Euro. Earlier even if a Tourist wanted to buy a product desperately, he/she was made to think thrice about it because of the different currencies within Europe but these days there is transparency in prices with regard to the currencies and this has only happened because of the introduction of the Euro. Euro has brought in a lot of Economic and financial stability, a Businessman is much less prone to risk when using Euro as his/her currency. Single currency keeps the inflation rate under a good check, which is extremely important for an economy and the Euro does exactly that. It keeps interest rates and the rate of inflation under check hence it can be said that the Euro plays a pivotal role in maintaining the economic growth of the European nations.
Problems of the European Single Currency
The biggest disadvantage is that it increases the financial cost of an institution in getting adjusted to the new currency. The ...Show more


The introduction of Euro in the year 1999 signaled the economic integration of the European countries. Prior to its launch there were ambiguities but after the launch all the issues quickly disappeared and Euro within no time became a favorite among the citizens residing in European Countries…
Author : xmoore
Pros and Cons of European currency union essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Pros and Cons of European currency union"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

The issue of regional currency unification
The paper further notes that currency unification should not be seen as the only component of the much wider integration efforts. Additionally, the region has to do away with distortions that bar inter-regional trade and investments for a successful economic integration to occur.
24 pages (6000 words) Essay
The United Kingdom and Proposed European Union Financial Transaction Tax
“The tax would impact financial transactions between financial institutions charging 0.1% against the exchange of shares and bonds and 0.01% across derivative contracts”1. However, the proposed tax system will not have an impact on citizens and businesses.
9 pages (2250 words) Essay
Should Greece leave the European Union, or the Eurozone
Should Greece leave the European Union, or the Eurozone? The concept of a unified Europe goes a long way in the 9th century when the Frankish emperor Charlemagne dominated over a major area of Europe. In the 19th century, the French leader Napolean Bonaparte tried to capture many regions of Europe.
10 pages (2500 words) Essay
European Single Currency
This paper will throw light upon the benefits and the problems of the European single currency, which is Euro. In addition to this the paper will also focus upon the affect on other currencies by the present rise in the value of the Euro. The introduction of Euro in the year 1999 signaled the economic integration of the European countries.
7 pages (1750 words) Essay
Economics Pros and Cons of Britain going for Single European Currency (Euro)
16 pages (4000 words) Essay
European Union Single Currency Policy
Going back in time, The European Commission had issued the White Paper on the Completion of the Internal Market. This document emphasised that there should be a free flow of human beings, products and capital within the member states of the European Union.
11 pages (2750 words) Essay
European Union
Chabot stated that this revolution involves the solidification of a European market of goods and services, major structural changes in countries plagued by fiscal negligence, and the reorganization of monetary policy in some of the world’s most advanced industrialized economies. The “European Single Market” is “the world’s largest domestic market”.
13 pages (3250 words) Essay
European Currency
For the first time there has come a competitor of US dollar - the euro, capable to challenge its status of dominating currency of the world. Before introduction of euro there was only one European currency, the DM, played an appreciable role in the currency markets of the world, however outside of the Europe it had no prospect to strengthen and expand its position.
6 pages (1500 words) Essay
The Future Gulf Currency Union
According to states Hebous (2006), the use of a single monetary system can lead to benefits such as low transaction costs, efficient trade, and low trade risks among the member. He points out the successes of the US and Euro-zone monetary unions as case for
3 pages (750 words) Essay
Ongoing Greek Drama: Discuss impact of a potential Greeces default and expulsion from the Euro zone/ European Union. Will other nations such as Spain, Portugal & Italy be next. Discuss pros & cons of such a move
However, the recovery process has not been equally effective across the globe. Nations mostly in the Eurozone have failed to recover financial stability five years later from the global
7 pages (1750 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us