America and the Euro

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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 trade. While we put great attention on emerging markets throughout the world, one cannot overstate the importance of our commercial relationship. The EU is by far our largest commercial partner. The annual value of U.S. and EU trade exceeds $250 billion. Europe is twice as large a market for American companies as Canada and Japan combined. The U.S. and the EU are also the largest investors in each other’s markets. Europe is also the United States most important partner in supporting the global trading system.

The launch of the Economic and Monetary Union (EMU) is part of a broader process of enlarging and deepening the European union. EU leaders view the EMU as the next historic step in a long process of European integration and essential to ensuring a global role for Europe in the future. This drive toward a unified European currency has long been on the minds of Europeans, ever since a European commission conceived it in 1957.

Economic strength, stability, and vitality in Europe is in the United States national interests. A strong European economy will benefit U.S. exports and American economic interests in general. Though business will have to deal with certain transitions and changes attendant to the adoption of a single currency. The U.S. has a strong interest in Europe’s futur...

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...html (February 22, 2001)

Barber, Lionel. “The Euro’s Progress.” Europe: Magazine of the European Union, April 2000

European Central Bank. Euro Foreign Exchange Reference Rates. March 14, 2001. Available: http://www.ecb.int/index.html (March 14, 2001)

European Commission. Convergence Criteria for European Monetary Union (EMU). March 25,1998. Available: http://www.bloomberg.com/emu/eurocomm.html (February 26, 2001)

Gros, Daniel. The Euro: Strong economy, weak currency. September 19, 2000. Available: http://www.ceps.be/Commentary/September%2000/gros.htm (February 3, 2001)

Guttman, Robert J. “Governor of the Central Bank of Finland Matti Vanhala: Interview” Europe: Magazine of the European Union, April 2000

President Romano Prodi. President’s Welcome. September 1999. Available: http://www.eurunion.org/infores/euguide/president.htm (February 26, 2001)

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