In 1960, the European Economic Community (EEC) decided to establish a single currency for all the nations that are a part of it. The Barre Plan embodied the same idea in 1969 and the Werner Plan wanted to establish the Economic and Monetary Union (EMU) of Europe in 1970. The idea of a single currency for the whole of Europe originally took shape in the 80s with the introduction of the Single European Act. The EMU was created in 3 steps.
First, the free flow of goods, persons, services and capital was facilitated. Then, the European Central Bank (ECB) was opened in 1998. This facilitated the adoption of the single European currency and the consolidation of economic and monetary policies. Finally, steps were taken to fix the foreign exchange rates.
Tags - The EURO, foreign exchange rates, Werner Plan
[...] However, the economic crisis has weakened the currency. It would be interesting to see the vulnerabilities of that currency to the crisis and also to see that countries develop have gotten by. Defects of the euro Despite finding themselves in the grips of an economic crisis, the countries of the EU which adopted the euro are being forced to pay increasingly higher interest rates because they do not meet the criteria of the Maastricht Treaty. A total of 31 billion euros were paid for the entire euro area. [...]
[...] Europeans are powerless against the internationalization of their currency. The eurozone lacks means of intervention, it has no instrument to differentiate its policy among the member countries and the difficulties of Greece increasingly pose an important issue, how the finances of a country can affect the value of the common currency and thus the economic health of the entire area. Greece is the victim of a very large debt that could become difficult to repay but this is not an isolated case. [...]
[...] The first stage involved the flow of goods, persons, services and capital. Then, the opening of the European Central Bank (ECB) in 1998 embodied the adoption of the single European currency and the consolidation of economic and monetary policies. Finally, the last phase provided for the fixing of exchange rates, wherein these rates may be changed. To participate in the single currency, countries had to take into account certain criteria. Indeed, the ratio of deficit to GDP must be less than public debt and GDP must not exceed 60% and the inflation rate must be less than 1.5 points of the three countries with lowest inflation. [...]
[...] Then, the creation of new indicators such as productivity or labor costs will allow to track the competitive gap between countries and can address them quickly. Finally, countries that do not take account deficits will be punished. In conclusion, the eurozone was indeed in crisis but the leaders of each country are making every effort to get by. The euro is a strong currency that will continue to challenge the dollar for some time. However, countries must pay attention to their accounts but they must also help each other. [...]
[...] The eurozone lacks discipline and solidarity. Their efforts to remedy the situation To stop this problem, the EU decided to overturn its ideas. Indeed, the 17 participants in the euro zone wants to forget the principle of "every man for himself", we will find ourselves in a system organized along the lines of mutual surveillance. The ECB plan to buy government debt will help states and support markets; contrary to what people may think, it will not increase the money supply. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
