Europeans and the EURO

Europeans and the EURO

Length: 1600 words (4.6 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
Europeans and the EURO - A New Era

Monetary Union represents a major step forward in the building of Europe and one of the most ambitious collective projects at the tail-end of this century. All European citizens should be fully aware of the extent of the change taking place, a change which goes far beyond the framework of the financial markets alone. Today’s presentation, which is aimed not at the experts but at the future users of the Euro, that is, all of us, offers an excellent opportunity for highlighting the impact of Euro.

From the very first day of this year something amazing happened in Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. From January 1, these 11 countries have a single currency, the Euro. A currency that will be the only one used among the European Union. The first person who had the idea of creating a single currency for his country was the Roman Emperor, Diocletian back in 300 AD. He established a primitive gold standard and set up a coin that was used throughout the realm. After many centuries passed, in 1958 the European Economic Community was formed having as an objective the monetary unification. But the year that the final agreement was signed, was 1992 in the Maastricht Treaty of the European Union, which points to the introduction of a single European currency in 1999.

The Euro is the name of the single currency of the European Community. Essentially the Euro is the ECU renamed, since ECU’s will be exchangeable one-for-one for new EUROS. The ECU is currently the basis for the European Monetary System. ECU stands for European Currency Unit, but is pronounced “EK-you”, after the name of an old French coin with an equivalent spelling. The ECU is defined in terms of pieces of European currencies, making it a composite currency in origination since its creation it has become a currency of denomination for eurobonds and bank certificates of deposits, among many other uses.

But some of you will start wondering why do we need the Euro? Well, the answer is obvious. Europe’s economy is now built on a single market and the single market will work much better with a single currency. Just imagine a situation in USA, for example, with every state having its own currency! Total chaos.

How to Cite this Page

MLA Citation:
"Europeans and the EURO." 24 Apr 2019

Need Writing Help?

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

Check your paper »

Treatment of Native Americans by Europeans Essay example

- Native Americans have faced increasing encroachment by European and Euro-American settlers since the discovery of the Americas by Europeans in 1492. Beginning with the Caribs, mistakenly labeled as Indians by Christopher Columbus, continuing with the ‘Indian Wars’ waged by the U.S. government against such tribes as the Lakota and Apache, and lasting until today, native peoples have had to adjust and adapt constantly to survive. Native peoples have had to use and balance their ‘historical agency,’ or the ability of a people to affect the world around them throughout history, against the ‘structural forces’ set up by outsiders and foreign governments, which seek to limit their impact on the wo...   [tags: Indian Wars, Columbia River]

Research Papers
3098 words (8.9 pages)

Euro Crisis and Social Inequality Essay

- The EU or The European Union was established in 1935, it presently establishes a shared market among its current 28 member countries that are located in Europe. The EU has its own parliament and banking system where 13 members states are operating under the common currency the “Euro”. The purpose of EU is to develop a sense of unity and promote economic and social development where Europeans feel unrestricted and have a sense of justice equality and freedom in their own countries and when they travel to other EU countries....   [tags: Debt, Disparity, Unemployment]

Research Papers
830 words (2.4 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]

Research Papers
2226 words (6.4 pages)

Why Europeans Used Christianity As A Weapon Of Conquest Against The Indians

- Europeans used Christianity as a weapon of conquest against the Indians to acquire land and to convert them to Christianity. Many ask, were our actions justified. We originally took the Indian’s lands, as a result of the Indians not using their land as “God” planned them to use the land. The Europeans also tried to convert Indians to become Christians rather than their own religion. Were the actions of the Europeans justified. No they weren’t. Winthrop argued that the Indians didn’t deserve the land “God” gave them, since they didn’t have fences or livestock....   [tags: Christianity, Religion]

Research Papers
703 words (2 pages)

History of the Euro Essay

- History of the Euro After the long awaited single currency implementation known as the euro, there have been many ups and downs to this monetary system. Many have been quick to criticize while others still praise its value claiming it will soon be valued strongly against the dollar. Our paper looks into the various aspects of the euro and the progress it has made since its initiation. We begin with a brief history of the euro then move on by raising some questions concerning the effects of the euro on various economic aspects such as competition and global financial institutions....   [tags: Europe Eurpean Currency Money Essays]

Research Papers
5638 words (16.1 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]

Research Papers
3480 words (9.9 pages)

Aboriginal Aborigines And Aboriginal Land From Exploitation Of Europeans

- The Canadian government believed it was their duty to protect Aboriginals and Aboriginal land from exploitation of Europeans. Canada gave Aboriginals special status, which provided the government exclusive jurisdiction over “Indians and Indian land”. The duty to protect would be fulfilled when the elimination of Aboriginal special Status could occur. At this time Aboriginals would be “skilled” in European values to handle their own interests. Canada separated Aboriginal lands from European settlements with a line....   [tags: First Nations, Canada, Culture]

Research Papers
1531 words (4.4 pages)

Essay on The Clash Between Native Americans And Euro American Settlers

- The Clash between Native Americans and Euro-American Settlers Introduction The clash between Native Americans and Euro-American or European settlers cannot be discussed in the absence of the origin and birth of the United States. In this regard, Current, Williams & Freidel (1965), provide that the US has its origins in the quickening of Europe. In essence, as Current et al. (1965) continue to assert, after Columbus’ discovery of the new world, America presented a unique opportunity for Europeans as a land of peace, abundance, security, and liberty....   [tags: United States]

Research Papers
1442 words (4.1 pages)

The European Union Essay

- After World War II, Europe needed a way to reconnect itself as a cohesive continent and find a character in itself. The creation of the European Union was a system to reunite Europe and help with its world identification. However, the EU has suffered setbacks to its formation – mostly economically. In 2009, the monetary policy failed due to the United States’ banking crisis in 2008. Also denoted to as the Eurozone crisis, the main question now is who and or what is to blame. The Maastricht Treaty, signed in 1992 by European leaders, set the ball rolling within the Eurozone crisis by establishing a common currency and creating a flawed setup....   [tags: European Union, United Kingdom, Eurozone, Euro]

Research Papers
718 words (2.1 pages)

Essay on The Euro

- Abstract On January 1, 1999, when eleven nations of the European Union joined together and all shared the same currency this established the world's first common currency, it is known as the Euro. Is this Euro going to be the down fall of the American dollar as a world dominant currency. What are the effects on the United States economy from this overpowering currency. What impact will this have on travelers from the United States to Europe. The Euro, Effects on America On January 1, 1999 the world watched as 11 nations of the European Union joined their currencies to each other and established the world's first common currency, the Euro....   [tags: Currency Euro European Union]

Free Essays
1165 words (3.3 pages)

Related Searches

Of course we cannot expect from Euro by itself to solve all our problems, but one thing is sure. It will make the newly established European economy strong and with great potentials for the future.

In a business forum, which took place in Thessaloniki last February, a research was conducted. 110 top executives and Chief Executive Officers were asked if Greece should join European Monetary Union and 98% answered positively.

But what about the benefits that we, citizens of the European Union, would have? Firstly, the Euro will hit the problem of unemployment, which has reached 11.7% in Europe, in 1999. A stable currency will lead to lower average interest rates and this will be good for investment and as a result good for jobs. Also, the rate of growth will be greater, the standard of living will rise and there would be more job opportunities.
Secondly, there would be some obvious advantages in everyday life. It would be simple to compare prices for the same goods in different member states and choose the least expensive one. For example, in May 1, 1998 a Ford Mondeo in Germany was priced 15,005 EUROS while in Spain only 10,491 EUROS! The difference was 4,014 EUROS approximately 1,300,000 Drs! So it would be easier to find a good deal through the Internet or mail order without having to calculate exchange rates.

Thirdly, put yourself in the position of a person who likes to travel a lot, and wants to see European Union’s sightseeing. Or even imagine you being a businessman having to make business trips all the time around Europe. Think how much money you now lose from the exchange rates losses and charges travelling from country to country. Not to mention the time loss, of course, in the banks changing coins and paper money. With Euro you would be able to travel around European Union without losing time or money in charges.

Individuals will benefit but what about businessmen? Will they gain anything? Well, the impact on the companies will be something more than positive. Euro will help especially the small and new companies to grow and prolong their life cycle. The open borders will create a target market bigger than they expected, with potential customers all around Europe. In the same research, 43% of the executives answered that Euro will have a positive impact on firms in the short-run. But 81% believed that businesses would benefit in the long-run.

The exchange rate risk and uncertainty will be eliminated and the transaction cost will be much lower. As a result it can be said that conducting businesses would be simplified. No need to handle more than one currency; Euro for businesses inside European Union and dollar or yen for overseas.

Generally speaking, the single currency will increase the competition between firms. That is what 73% of the executives believe, while only 11% thinks that competition will become less intense. Opening of the borders means big foreign firms entering new markets with much lower cost than they used to suffer. That’s why local firms have to become stronger, attract more customers and decrease their operational cost. Also they have to follow the technological advancements and base their marketing strategy on information.

But speaking particularly for Greece, will the stock exchange benefit from the introduction of the Euro? Of course. It will receive a lot of privileges. Its credibility has already rose due to the quick reaction it had towards the new environment. Also the stock market will lead the way and help significantly the Greek firms to pass this transitional period having the least possible harm. Moreover, it has already started functioning according to the laws of stock exchanging in others members of the European Union. Finally it will minimize the danger of dealing with investments in EUROS. All the above, mainly mean that foreign funds will have an easier access to the Greek stock market and Greek economy in general.

But does the Euro have only positive impact on European business and more generally in our lives? There are many problems that the European community has to overcome. Just imagine the case that an old relative of yours, who has never used a bank and keeps all his money hidden at home… or an old lady trying to buy potatoes and tomatoes from the grocery. Of course it won’t be easy for the elderly to adapt to the new era of the single currency. It will be very difficult to persuade them that the money that they already have is not used any more and they have to exchange them immediately. Negative beliefs concerning prices along with complaints for speculation will be a natural phenomenon in everyday life.

What is more, the introduction of the Euro will be very expensive. You see all the old money must be collected, destroyed and replaced by EUROS. This would cause a huge expense without offering any benefits. But people, who support the Euro, believe that this would be a one-off expense.

In addition, will the EURO be accepted as easily as is thought? That is a personal matter. Some people fear that they will lose their identity if they pay in EUROS that do not originate in their own country. For instance, Greeks may not accept Finnish EUROS, even if officially they should.

This is where the government comes to solve any problems, before even appearing. The Greek government has already taken some measures that will help people to be ready for the Euro. It’s almost a year that police has started charging its tickets in EUROS. Telephone, electricity and water bills show the amount of money that is about to be paid in both drachmas and EUROS.

In the first 11 countries that already participate in the euro-zone, prices are already in both local currencies and EUROS in all supermarkets and department stores. Stock exchanges and other financial markets have begun doing business in EUROS. But are all these actions enough? Well, according to the European Union’s leaders no. They give special attention to the banks and financial institutions to inform people with seminars, spots in the media and brochures. So it seems that everybody is working with great team spirit towards the goal of European Monetary Union.

4 more countries will be added to the euro-zone in January 1, 2001: Greece, Britain, Denmark and Sweden. Until then the use of Euro is optional in the 11 countries that have joined in 1999. Based on the previous research, 72% of the asked think that Greece will manage to catch the train of European Monetary Union in 2001.

By the time that all 15 countries will be legal members, EUROS will start circulating and used along with local currency. Each country will begin withdrawing national bank notes and coins. July 1, 2002 will be the deadline for local currency. From this date and on, EUROS will be the only legal tender around the European Union. European Monetary Union has all the capabilities to succeed. The words of Mr. Spraos, economist and consultant of the Greek Ministry of Finance are characteristic: “It’s early to open champagnes for the European Monetary Union, but we should start polishing the glasses.”
Return to