European Union and common currency Euro, advantage or disadvantage?

EURO is the currency of eurozone and the second most important representative in the  world monetary system. EURO is the official means of payment in 17 of the 27 member states of the European Union and in other 6 countries expect EU. The start of validity of exchange form was on the 1st January 1999 whereas the currencies form was introduce into the circulation on the 1st January 2002.

Firstly, when started European coutries accepted Euro was around common currency big shadow. Optimism and on the other side pessimism and views on them are still diversed. The crisis left on euro reputation unwelcome harms. The Most of Europeans are calling for the return to the national currency.

The loudest discussion is in Germany, where, by the way, was euro never popular. Immediately after its introduction was euro uncomplimentary call “teuro”, which is derivated from German term teuer, which means expensive.  But views of residents could be different as is the reality. Because in the real some prices of everyday consumer products increased, but the most of them decreased and after the euro introduction is the inflation even lower then in time German mark. But if we look in policy we will find definitely different opinion. No member of the Government haven´t  even mentioned the possibility of canceling the euro. And so between the high-level managers we won´t  find many opponents of the common currency.

Even among the French is the euro unpopular. “The main problem of our country is called the euro,”declares the Marine Le Pen, elected as the President of the National Front, spoken of as a strong rival Nicolas Sarkozy in the presidential election 2012. According to her is the move production outside France incurred the strong course of euro. And the French are paying billions in extra payments for other members of the monetary union.

Unlike Germany, the Austrians are for the euro. According to a survey for the daily Standard want 66 percent of the people maintain the current currency and only 31 percent prefer the return to the shilling.

Also in Ireland calls for the abolition euro only some few. In spite of the Irish people complain about the harsh conditions of the rescue package, the most people are realizing that without that would have be worse.

In the Spain is none nostalgia after old currency too. “Because even today has Europe only limited power and we would become meaningless without the euro, “said the position former Finance Minister Pedro Solbes.

In the end of those summary about the youngest member Estonia, which enter in european zone on the 1st January 2011. In the time when the expectations wasn´t so good. For all that the adoption of the euro support at the end of last year most of the Estonians. “We are simply too small for us to have an independent monetary policy, “said Finance Minister Jürgen Ligi.

So it is euro really such a big disadvantage as the most resident mean?


3 thoughts on “European Union and common currency Euro, advantage or disadvantage?

  1. The euro contribute to greater competitiveness to Slovenia and other EU countries. The introduction of the euro caused comparable prices in the euro area and the creation of a more stable environment for the whole economy. The single currency is removing exchange rate risks and costs of changing money. I think the long term we can expect lower interest rates and price stability, which will have a positive impact on investment and economic growth. The introduction of the euro also helps to develop the capital market between the Member States of the euro area.

    • The Euro has a lot of advantages for business as well as for consumers. Obviously are the elimination of changing money and the risk of price fluctuations. Throughout the euro area, paying and travelling also became easier. Moreover the single currency allows an easy comparison of prices across the euro area. This price transparency increases the intra-European trade and lead to more competition. Also there are much more investment opportunities for consumers that can be used throughout the EU. Benefits for companies, especially for small and medium-sized enterprises are calculated by the elimination of transaction costs. The purchase of foreign currency or an expensive hedge against price fluctuations is no longer necessary, for example. Beyond the direct benefits the euro system ensures also financial stability. Especially during the financial market crisis, the euro has passed the test. His strength provides a stable currency. Not for nothing, EU countries, which have faced the Euro sceptically, are thinking about to join the Euro area.

  2. As of my country, Norway I hope that Norway never get EU membership. I dont want some other guy come and make rules about this and that. I like my country how it is and its so good there. Norway is a member of the EØS- Agreement which secures some export and import as well as some economy rights to trade with other EU countries. Norway pays big bucks to be apart of this and thats OK, but EU member- nono amigo…Also Eu countries are much depended on oil and oil from Norway, if Norway would became a member im certain that some kind of regulation will make norway give the wealth to other countries!
    On the other side it would be cheaper to live. But I like how it is, expensive and rich.
    My opinion.


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