Essay on The European Economic Community and the Euro Dollar

Essay on The European Economic Community and the Euro Dollar

Length: 2727 words (7.8 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

The European Economic Community and the Euro Dollar


The European Economic Community (EEC), also known as the common market, was established in 1957 through the treaty of Rome signed between Belgium, France, Italy, Luxembourg, the Netherlands, and Germany in order to achieve economic cooperation. "It has since worked for the free movement of labor and capital, the abolition of trusts and cartels, and the development of joint and reciprocal policies on labor, social welfare, agriculture, transport, and foreign trade." Over the years, monetary union has been suggested by the members of the EEC and was finally attained on January 1,1999 when eleven European countries, which are now collectively referred to as Euroland, introduced a single currency, the euro. Since then, the euro has invaded nearly every sector of the world economy. The monetary revolution embodied in the euro involves far more then the elimination of 11 currencies and the distributions of colorful new banknotes and coins across Europe. "It entails the solidification of the European Union's common market for goods and services, major structural changes in countries plagued by fiscal imprudence, and the reorganization of monetary policy in some of the world's most advanced industrialized economies" The risks of implementing the euro consist of supply shocks and political discord. Although the ongoing risks of maintaining Economic monetary union may hinder the stability of the euro in the long run, the integration of the euro to the EEC as of January 1999, has so far proven to have a positive affect on the European economy and has allowed it to achieve its primary political and economic goals through its four core benefits: the reduction of transaction cos...


... middle of paper ...


...ry 1, 1999 under the full leadership and support of eleven heads of state, thousands of politicians, and hundreds of prominent economists. Whether the euro's economic advantages outweigh the risks posed by economic shocks and political instability is unknown. The great gamble the EU (European Union) leaders have taken is that modern Europe is entering a new era of adaptability and flexibility that ensures the success of monetary union. So far the advantages of the EMU have come through and are showing positive signs towards the probability of a well-stabilized European economy that will benefit not only domestically but also internationally through economic stability, reform, and growth. Although its success cannot be determined until the next economic downturn, the EMU (Economic Monetary Union) is one the most exciting economic events in recent history.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Euro, A Common Monetary Currency Essay

- 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....   [tags: European Union, Euro, Eurozone]

Powerful Essays
1563 words (4.5 pages)

Essay on Benefits Of The Euro : A Single Currency

- Alejandro Fernandez ENC1101 Professor: Ivan Ruiz 12/7/15 Miami Dade College The Many Benefits of the Euro, a Single Currency The Euro is the single currency shared by 19 of the European Countries, which together make up the Eurozone. The Euro was created in 1999 and was a major step in European integration. It has also been one of its major successes; more than a million citizens of the European Union 's Member countries now use it as their currency and enjoy its benefits of the euro, a single currency....   [tags: European Union, Euro, European Central Bank]

Powerful Essays
734 words (2.1 pages)

Essay about European Economics : European Economic Monetary Union

- European Economic Monetary Union Introduction Any country maintaining its currency will always have the advantage of meeting its compulsions, which are in its currency, without some limit. Besides, own currency enables a nation to be independent in terms of policy formulations. On the other hand, a nation maintaining its currency is likely to daunt its tourism sector. This is because the tourists visiting the country would have to change money while traveling from their countries, as opposed to using a universal currency, for instance within the euro zone (Grauwe, 2014)....   [tags: European Union, Euro, European Central Bank]

Powerful Essays
1183 words (3.4 pages)

Essay on European Politics and the Future of the Euro

- Following the conclusion of World War II, Europe stood divided and economically weak with a lack of political cohesion to move forward in this new era. European countries understood the need for a united Europe and with Jean Monnet’s creation of the European Coal and Steel Community, that idea of unity drew closer. Furthermore, with the political and economic rise of the United States during and following the war, one single European country could not stand as a dominant global power (Feldstein, 2012 p.1)....   [tags: Economics]

Powerful Essays
973 words (2.8 pages)

The European Union And The Union Of A Free Trade Market Essay

- Intro: Few groups have changed the course of history, as well as the present, as influentially as the European Union. Along with guidelines, protocols, and institutional changes, the European Union has undergone many changes including quite an extensive name transformation. Starting with the name European Coal and Steel Community, designed by Robert Schuman, with intentions of promoting economic integration and the prevention of war between member nations. Next, the name evolved into the European Economic Community, later shorted to European Community when absorbed into the European Union, with its sights set on further integration with emphasis of customs union and the establishment of a...   [tags: European Union, European Economic Community]

Powerful Essays
1194 words (3.4 pages)

America and the Euro Essay

- 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....   [tags: Papers]

Powerful Essays
3480 words (9.9 pages)

The Euro and the European Union Essay

- The Euro and the European Union Many people would agree that Europe is a continent in which regions identify with each other even if they are not part of the same country. For that reason, as well as others, in 1957 the Treaty of Rome "declared a common European market as a European objective with the aim of increasing economic prosperity and contributing to 'an ever closer union among the peoples of Europe'" (www.euro.ecb.int). Later, in 1986 and then in 1992, the Single European Act and the Treaty of European Union tried to build on the previous treaty to create a system in Europe in which one currency could eventually be used all over the land under the heading of the Economic and Mone...   [tags: Politics Economics]

Free Essays
1112 words (3.2 pages)

The Euro Essay examples

- The Euro To most people in the United States hearing the word Euro brings about blank stares. Ask this same question in England or another European country and it means bringing Europe together under one common currency. The Euro can be defined as the common monetary system by which the participating members of the European Community will trade. Eleven countries Germany, France, Spain, Portugal, Ireland, Austria, the Netherlands, Belgium, Luxembourg, Finland and Italy will comprise the European Economic Monetary Union that will set a side their national currency and adopt the Euro in 2002....   [tags: essays papers]

Powerful Essays
2226 words (6.4 pages)

The Euro Essay

- The Euro In today's world of advanced Business, Finance and marketing, the measure of success is the ability to sustain deterrents and reversals as a part of life and resolving it in a competitive and innovative way. National currencies are vitally important to the way modern economies operate. They allow us to consistently express the value of an item across borders of countries, oceans, and cultures. Wealth can be easily stored or transported as currency. Currencies are also deeply embedded in our cultures and our psyche....   [tags: Papers]

Free Essays
3364 words (9.6 pages)

The Euro Essay

- The Euro The Euro is the single currency of the European Union. It was first introduced in cashless form on Jauary 1st1999, following years of negotiation and preparation. Euro notes and coins will officially come into circulation on 1st January 2002 in the twelve participating countries. These countries are Germany, Belgium, the Netherlands, Luxembourg, Italy, France, Ireland, Spain, Portugal, Austria and Finland; Greece became the twelfth member when it joined the Euro on January 1st 2001....   [tags: Papers]

Powerful Essays
1496 words (4.3 pages)