The Euro, A Common Monetary Currency Essay

The Euro, A Common Monetary Currency Essay

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The Euro, a common monetary currency that was adopted by the European Union (EU) in 1999, was set up as a means of not only unifying Western Europe under a common method of transaction, but as a way of solidifying the role of the EU throughout the western portion of Europe. By creating this common unit of currency, the EU was able to ensure an efficient way to not only travel across borders, but as an efficient way to partake in international trade. By having one common currency among many countries, it made it possible to not only easily trade money across nations, but also as a way to avoid potentially costly foreign exchange rates. However, even though creating the Euro has a multitude of positive impacts on Europe, it is also arguably a large factor in the economic downturn of the Eurozone and the surrounding countries of Western Europe today.
The European Commission stated that, “In 1991, the Member States approved the Treaty on European Union (the Maastricht Treaty), deciding that Europe would have a strong and stable currency for the 21st century”. The treaty was signed between the Netherlands and Belgium, and was responsible for creating the European Union which was formed due to the aftermath of World War ll. The treaty’s main purpose for creating the EU was to form a monetary market and to also trade more within the European member states which led to the creation of the euro. The advantages of having one common currency led to many beneficial factors, not only did it eliminate a good amount of the expensive foreign exchange rates but, it also made it easier to make transactions across all of the member nations. As well as creating a more cooperative alliance among states by linking their nation’s economic success toget...

... middle of paper ... the process create a more effective alliance between nations. As with any other monetary system, it is impossible to occur with no flaws. The Euro Crisis beginning in 2008 has led to not only the collapse of multiple Eurozone economies, but economies around the world, leading economists to question the legitimacy of a unified currency. While it is impossible to know what the Eurozone, the European Union or the world would look like today had the Euro not been created, what the world does know, is that there is never a perfect answer to solve the problems arising from an ever growing global network. All that can be done to ensure a better future is to learn from the past and to continue to move forward. By working to establish a stronger economic and political union, the Eurozone will continue to influence not only Western Europe, but the overall global economy.

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