The Adoption of the Euro Case: Sweden and England
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 single currency in the United States. Since Europe’s countries are closely tied together, the goal of the currency is to trade easier with one another, as well as sharing fiscal and exchange rates. Currently, there are roughly about 17 members from the EU who uses the euro as their currency and it is known that once a country joins the Union, it must quickly adopt to use the euro to enter the market for goods, services, and trade among member states. This adoption of a single currency has been the talk for a decade as well as in literature and scholarly articles. Throughout the course of this paper, it would look at two countries that refuse to adopt the euro: Sweden and the United Kingdom. The paper would answer questions that surround the euro ever since it was created, such as national identity issues of both countries, how it affects political leadership, and the economic costs and benefits of adopting the euro. Ultimately, it would answer a research topic whether the euro will overall rise or fall in Europe.
Many scholars find the adoption of euro as a mean of saving their economic growth. Others often perceive it as an easy road for facilitating trade and secure their bank’s assets. However, there are other scholars whose ideas and perceptions differ from them. Some academics and eco...
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...the economies of all other Eurozone member states are running smoothly.
The Euro has always been a political project. Politicians view the Euro as a major step towards a United States of Europe. Europe is not trying to turn itself into another country like the United States. The euro means a lot more to Europe than just money. It represents a political union from neighboring states, as well as partnership for the future. The countries who adopted the euro gave up their sovereignty and heritage to become part of the EU, which makes them more united and stronger. However, it is also not certain whether the euro will stay strong like the Japanese yen and the U.S. dollar. Both Sweden and the UK are members of the EU, but decided to opt out of the euro. Only time will tell whether these countries made the correct decision from alienating their selves out of the Eurozone.
In this essay, the author
- Explains that the european union was built through several binding treaties and laws that harmonized european states when it comes to political issues and economic issues.
- Explains that many scholars find the adoption of the euro as a means of saving their economic growth. others perceive it as an easy road for facilitating trade and secure their bank’s assets.
- Explains that the referendum of the eu is for member states to uphold their currency and adopt the euro. only sweden and britain (along with denmark) do not comply with this wish.
- Explains that the european union was built through several binding treaties and laws that harmonized european states when it comes to political issues and economic issues.
- Explains that many scholars find the adoption of the euro as a means of saving their economic growth. others perceive it as an easy road for facilitating trade and secure their bank’s assets.
- Explains that the referendum of the eu is for member states to uphold their currency and adopt the euro. only sweden and britain (along with denmark) do not comply with this wish.
- Explains that sweden joined the european union in 1995, but did not use the euro. it became problematic for other countries, even their own political party, to convince the state to change their currency prior to joining the eu.
- Explains that sweden was reluctant to join the eurozone, but business leaders predicted that the euro would bring more foreign investments.
- Analyzes how a study developed by james reade and ulrich volz panned out the economic costs and benefits of joining the euro.
- Illustrates that sweden's interest rates, along with the euro appear to move much more closely together. even when sweden experienced a severe banking crisis in the early 1990s, sweden remained in tow with europe.
- Concludes that monetary independence in sweden is just an illusion whether or not they abstain from the euro.
- Explains that swedish voters recognized serious concerns over the sovereign debt crises that many eurozone members are currently dealing with. svensen states that portugal was the first member state which reached the 3% limit for budget deficit.
- Opines that if the nations in the eurozone still had their own currencies it would quickly restore competitiveness, but they are in for an extended period of unemployment and slow deflation.
- Opines that sweden could change its currency to the euro in the future, since the debt crisis has shaken its supporters' confidence.
- Argues that britain's attitude to be an outsider from the eurozone is due to its culture and tradition.
- Explains that the british don't want to lose the pound due to the strong historical attachments, and their currency alone holds a piece of value.
- Analyzes how britain perceived the euro as a lesser value than their own currency, which will ultimately result in bankruptcy.
- Illustrates how the euro itself hinders economic growth in the eu. adopting the euro would drag them back and push them towards a devastating depression.
- Opines that britain could join the eurozone if all the countries that use it are equally economically strong. but does it fix the debt crisis other countries are currently having?
- Opines that the euro represents a political union from neighboring states, as well as partnership for the future.
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