America and the Euro Essay

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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. The EU is by far our largest commercial partner. The annual value of U.S. and EU trade exceeds $250 billion. Europe is twice as large a market for…show more content…
President of the European Commission Romano Prodi strengthens the value of the U.S.-EU relationship by stating, “The political and economic ties between Europe and the United States have been strengthened by over 40 years of close cooperation toward common goals.” For a visual understanding on the United States and the European Unions relationship refer to appendix A, US-EU trade in goods, appendix B, US-EU trade in services, and appendix C, US-EU investment. Our analysis will include the history leading to the emergence of the European Economic Community and the European Union. Given the foundational background, we can then move into the topic at hand, the euro. Analysis on the euro will include the changeover stages, leading into the heart of the research, the advantages and disadvantages for both U.S. business and European businesses dealing with the single currency. Lastly a comparison between the euro and the dollar will wrap-up the research. THE ROAD TO A SINGLE CURRENCY EUROPEAN ECONOMIC COMMUNITY To first understand the Euro, you must understand the evolvement of the European Union. The Union is the latest stage in a process of integration begun in the 1950’s by six countries - France, Germany, Italy, The Netherlands, Belgium and Luxembourg - whose leaders signed the original treaties establishing various forms of European integration. The strength of a potential economic integration was launched in the
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