Will the Euro Survive?

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"Europe must prevent Greece from becoming an out-and-out catastrophe and make sure that the same fiscal 'remedy' is not applied to other weak economies" -- Franziska Brantner The brutality of the World War II and the anguish of the Cold War enforced nations in Europe to establish the European Union for peace and unity in the region. With ratification of the Maastricht Treaty by members of the European Community in 1993, an economic and 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 European Union. The German Chancellor Gerhard SchrÖder said in a speech in 1999 that “The introduction of the euro is probably the most important integrating step since the beginning of the unification process.”(Yeager, 30) Therefore, in this essay I would like to study the history of creation of the euro, lessons that the European Union draws from the euro crisis and analyze the future predictions of specialists about the euro. I will use the publication “Economic and monetary union and the euro” by the European Commission as the main source and other credible sources about the euro in my paper. Since the start of the European Coal and Steel Community with the Treaty of Paris in 1950s, the leaders of the European Community have higher ambition to create the new “common currency”. Politicians rather than economists pushed for it, and the idea is... ... middle of paper ... ...urrent crisis, the future of unified European Union is higher. Works Cited European Commission. Economic and monetary union and the euro. Publications. Luxembourg: Publication Office of the European Union, 2012. Document. Grauwe, Paul De. "The Political Economy of the Euro." The Annual Review of Political Science (2013): 153-170. Academic Search Complete. Schwartz, Pedro. "Why The Euro Failed And How It Will Survive." Cato Journal (2013): 521-534. Academic Search Complete. Schwarzer, Daniela. "Crisis and Reform in the Euro Area." Current History (2013): 83-87. Academic Search Complete. Witte, Mark Dawson and Floris de. "Constitutional Balance in the EU after the Euro-Crisis." The Modern Law Review (2013): 817-844. Academic Search Complete. Yeager, Leland B. "The Euro Facing Other Moneys." Cato Journal (2004): 27-40. Academic Search Complete.

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