Pros and Cons of the Euro

These changes will in turn make companies more competitive, expand markets for businesses, as well as increase trade across borders. However, most importantly the euro is intended to create financial market stability within the participating countries. By eliminating the movements of exchange rate and all reference to them, the European Central Bank will control interest rates and inflation. This will lead to less uncertainty and create new opportunities for success.

Third, there is the free movement of people. Since the Schengen Agreement (1990), which was followed by the Schengen Convention, came into force in 1995, controls on people at the internal borders of the Schengen Zone were abolished in order to harmonise controls at the external frontiers and to introduce a common policy on visas and other accompanying measures like police and judicial cooperation. Additionally, the right for European citizens to move freely within the Schengen Area is determined in the Charter of Fundamental Rights. Originally, a right of free movement across the EU was only envisaged for the working population, as a single market could not be achieved while limitations to workforce mobility remained in existence. In Articles 39 to 42 of the EC Treaty, the right for EU workers to move freely is fixed again explicitly. This “special” kind of freedom should also include that any discrimination based on nationalities between workers of the Member States, regarding employment, remuneration and other conditions of work and employment, is abolished. To sum it up, people have the right to live and settle freely and companies are authorized to recruit people they need anywhere in the

The European Union (EU) is a unique economic and political partnership between 28 different countries. It consists of about half a billion citizens, and its combined economy represents about 20 percent of the world’s total economy (Briney, 2015). Today The European Union works as a single market, with free movement of people, goods and services from one country to another. There is a standard system of laws to be followed, and since 1999 many countries share a single currency called the Euro (Europa.eu, 2015). This essay will explore the background history of the European Union and the benefits and drawbacks of the European Union.

What the Euro experience has taught us is that even countries which are not vastly different from each other in terms of economic health, can face a phenomenal crisis within just 10 years of the creation of the single union. How then would you expect a global currency encompassing countries with vastly different structures, in vastly different stages of growth and using vastly different means of managing their economies to be stable?

As of 2012, only seventeen of members of the European Union have decided to use Euros as their currency. In order for the members that adopted the Euro as their currency to successfully help their economic problems, the Eurozone members had to follow strict instructions put into place the European Union. The strict policies included strict control over inflation, government debt, and long-term interest rates (Mckee 525). The union put these strict policies into place to give the union the tools that it needed to take in order to help fix the economic crisis in each country participating in the Eurozone. Without the full cooperation of each country, it could cause the plans to fix the economic crisis within each country to fail because of the different interests by each individual country.

In considering the international realm, let’s consider the concept of economic treaties. Specifically, let's think about an organization like the European Union (EU). Why was it formed? In addition, what are some of the objectives of the nations that are joining the EU?

In its historical context discuss why and how the EU was set up and the advantages and disadvantages of membership.

The EU sought to simplify trade within European neighbors and to replace national currencies with a single shared currency that could compete with the dollar on the global stage. The members of the newly-formed European Union agreed to a fixed currency conversion rate when the Euro was adopted (Scheller). Initially, the EU only had 11 members, but membership has since grown to 25 member nations. These 25 member countries operate within what is called the Eurozone, over which the European Central Bank sets economic policy

Whether the United Kingdom decides to join the European single currency and replace the pound with the euro will have profound economic as well as political effects on the country so is a very important decision and has considerable variations in attitudes towards the topic, although the British public opinion has consistently opposed joining the euro. The euro is currency shared by 18 of the European Union's Member States. The euro was introduced in 1999 and automatically became the new official currency of 11 States, followed by another 7 countries joining to date. However, the UK negotiated an opt-out to from the Treaty meaning they don’t have to adopt the common currency as they fit a certain criteria [1]. Joining the European single currency can have major advantages for the UK, such as diminished uncertainty of exchange rate for businesses and the decreased need to pay transaction costs of changing currencies when abroad. It can also have disadvantages such as loss of domestic monetary policy and variable rate debt in the UK.

This example is making great conditions with the desire of facilitated commerce and trade between every one of the world's countries. To finish its authoritative goal, all tangles to free development of merchandise, administrations, and headways must be emptied. The establishment and progression of EC is striking affirmation of the above example. The money related achievements of the EC have their starting in right presentations and plans, the first of which being the establishment of the EEC in 1957. Further, one of the basic foundations awakening the methodology of monetary coordination in Europe is the legitimate structure administering structure directing the free development of products, services, individuals and capital between Member States (Oliver & Enchelmaier,

3) Help stabilize exchange rates between countries. Especially after the global depression of the 1930s, it was considered vital to establish currencies that could hold their value, serve as mediums of international exchange, and resist any speculative attacks.

The euro affects markets in three ways: 1) countries within the euro zone enjoy cheaper transaction costs; 2) currency risks and costs related to exchange rate uncertainty are reduced; and 3) all consumers and businesses both inside and outside the euro zone enjoy price transparency and increased price-based competition.

Adoption of the Euro is directly related to the idea of the Economic and Monetary Union (EMU), which is a single, highly integrated economic market. The EMU was created in 1992 through the Maastricht Treaty in order to create the single market with a single currency, the Euro, and the EMU is defined by close economic policy creation between the members who fit the criteria. In order to join the EMU and adopt the Euro, a country must meet stringent economic requirements demonstrating its stability, including a low inflation rate, good exchange rate policies, and general fiscal rectitude. The European Central Bank manages the EMU and the Euro, and while member states have their own fiscal policy independence, member states of the Eurozone agree to set of best practices for fiscal policy under the Stability and Growth Pact. The success of the EMU hinges on coordination of policies and ideas between its member states. While the European Union states that the Eurozone is beneficial due to its unified market and currency policy guaranteed by stringent controls and stability from the European Central Bank, the Eurozone crisis of 2009 proved to be distatrous in both Europe and globally.

The main purpose of introducing the Euro is to help the poorer European countries to catch up to their richer counterparts.

There are many problems facing the European Union, banking crisis, the declining in intra-European solidarity and growth crisis. Specific businesses have increased their prices in some European countries faster than the other countries, which caused the euro to become less competitive; if the euro was cracked and some countries changed to their own currency then they would be able to lower their exchange rates. This would make their goods reasonably priced for the rest of Europe.