Eurozone - Essay Example

Comments (0) Cite this document
Europe has embraced on an amazing mission: to establish a single European currency for the whole European Union. Although the Maastricht Treaty committed the European Union to the goal of economic and monetary union (EMU) several years ago, debate over the matter continues to rage (Currie 1997)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
Read TextPreview

Extract of sample "Eurozone"

Download file to see previous pages The eurozone is the subset of European Union member states, which have adopted the euro (Eurozone 2005).
There are 12 member countries in the eurozone: Austria, Belgium, Finland, France (except pacific territories using CFP franc), Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain (Eurozone 2005). The rapid and smooth transition - and the successful logistical operation involving the transfer of billions of euro notes and coins to banks, retail stores, and vending machines - is a boost for the European Central Bank (ECB), which masterminded the operation (Schifferes 2002). When the 12 member states that currently comprise the eurozone gave up their currencies in favour of the euro, the European Central Bank took on the responsibility of monitoring monetary policy for the eurozone (Eurzone and the single currency 2005). Euro notes and coins is now being use by more than 300 million eurozone citizens.
Monaco, San Marino, and Vatican City also use the euro, although they are not officially euro members or members of the European Union (They previously used currencies that were replaced by the euro.) They now mint their own coins, with their own national symbols on the reverse. These countries use the euro by virtue of agreements concluded with European Union member states (Italy in the case of San Marino and Vatican City, France in the case of Monaco), on behalf of the European Community (Eurozone 2005). Likewise, Montenegro and Kosovo, which used to have the German mark as their de facto currency, also adopted the euro without having entered into any legal arrangements with the European Union explicitly permitting them to do so. They use the euro instead of the Serbian dinar, mainly for political reasons (Eurozone 2005).The other 13 countries of the European Union that do not use the euro are: Denmark, Sweden, the United Kingdom, and the ten member states that joined the Union on 1 May 2004; namely Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia. Denmark and the United Kingdom got special derogations in the original Maastricht Treaty of the European Union. Both countries are not legally required to join the euro unless their governments decide otherwise, by either parliamentary vote or referendum (Eurozone 2005).
Surrendering monetary policy to the European Central Bank (ECB) is an act of political will, and current members of the eurozone are still besieged with its economic consequences (Ezoneplus 2004). There are 31 nations, states and territories using the euro, including seven French and five Spanish overseas territories, two Balkan states, Kosovo and Montenegro, and strangely enough Cuba, where the Euro has been designated as the official currency at one of the biggest beach resorts. The rest of Cuba uses the Cuban peso, which is tied to the US dollar (Robinson 2002).
Since the adoption of the single currency by the eurozone countries, there are wide variations in the economic performance of the individual states in the eurozone. There was supposed to be increased convergence of the economic cycles of individual eurozone as the euro stabilised. However, this did not come to past (Eurozone and the single currency 2005). Moreover, the eurozone economy is still greatly influenced by the performance of the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Eurozone Essay Example | Topics and Well Written Essays - 3500 words”, n.d.)
Eurozone Essay Example | Topics and Well Written Essays - 3500 words. Retrieved from
(Eurozone Essay Example | Topics and Well Written Essays - 3500 Words)
Eurozone Essay Example | Topics and Well Written Essays - 3500 Words.
“Eurozone Essay Example | Topics and Well Written Essays - 3500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Is Eurozone sustainable for the UK to join

...?Is Eurozone sustainable for the UK to join? The Eurozone or the euro area can be defined as the union of countries in Europe who have decided to adopt the euro as their as a common and only currency. This economic and monetary union (EMU) currently has seventeen member countries who are Austria, Cyprus, Spain, Slovenia, Belgium, Italy, Ireland, Estonia, Greece, Germany, Portugal, Netherlands, Finland, Luxembourg, Malta, France and Slovakia. There are 10 other countries in the European Union that have not yet become members of the Eurozone. Seven of these ten countries would join once they are able to meet the strict guidelines of Eurozone. Rest of the three countries, including the United Kingdom, have an opt-out exception... and will not...
16 Pages(4000 words)Literature review

Eurozone crisis roars back to savage Spain Article Analysis

...? This article, “Eurozone crisis roars back to savage Spain” (Halligan, , highlights the economic indicators which do not seem good forSpain and how these indicators have worsened in the recent past to push the Spanish economy deeper into trouble. These indicators include the unemployment, debt-to-GDP ratio and the austerity packages introduced by the Spanish finance ministry and government time and time again, which have not been popular among the general public. The borrowing of Spain has increased drastically in past few months and this has reduced the investors’ confidence in the economy making the situation worse for the government since there is less investment and savings in the economy. Spain is considered one of...
8 Pages(2000 words)Essay

International Economics Eurozone

.... The criterion of financial integration outlines that it becomes easier for countries to source funds that can be used to trigger production in cases of adverse shocks. Inflation rates should be relatively similar in order to prevent cases of other countries having higher value of money than others. Is the current Eurozone is an optimum currency area? According to the criteria formulated by Mundell, the EU does not constitute an optimum currency area mainly because there is low mobility of factors. This is true because even individual members have low mobility of labor compared to other countries outside the union such as the U.S. However, it is important to note that Mundell was among the greatest supporters of the EU....
4 Pages(1000 words)Essay


...?Running Head: Eurozone Eurozone [Institute’s Eurozone Introduction Eurozone or Euro area is the given to the economic andmonetary union of seventeen countries from Europe. Their membership represents the fact that they have chosen to use euro as their sole currency for all purposes. These countries include “Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain” (Lynn, pp. 249-256, 2010). Denmark, Sweden, and United Kingdom are the countries, which are a part of the European Union, but they are not a part of Eurozone. The rest of the seven countries...
3 Pages(750 words)Essay

Should Greece leave the European Union, or the Eurozone

...?Should Greece leave the European Union, or the Eurozone? The concept of a unified Europe goes a long way in the 9th century when the Frankish emperor Charlemagne dominated over a major area of Europe. In the 19th century, the French leader Napolean Bonaparte tried to capture many regions of Europe. In the 1930s, Adolf Hitler wanted to conquer the whole of Europe. In all these cases, the goal was to control and dominate Europe. For many centuries, wars were fought in Europe for religious and political reasons but with no positive results. After the World War II ended, it became clear that war and violence cannot create a unified Europe. By the end of the war in 1945, there was destruction depicted in all the European...
10 Pages(2500 words)Essay


...?“WILL THE EUROZONE SURVIVE?” Purpose of the paper This paper delves in to the issues facing the Euro. It addresses the past, current and future situation of the Euro. It compares the Euro with other currencies and looks into the contribution of the Euro to the current crisis that faces the countries in the Eurozone. It explains the political and economic reasons and aspects for the existence of the Euro. Furthermore, this paper contains an explanation on the why the contagion in Greece spread so fast into the other countries of the union. In addition to that, there is an explanation of the measures that the European Union, the European Central Bank and the have undertaken to solve the crisis. Finally, it...
8 Pages(2000 words)Coursework

Eurozone Economy

...Economics commentary number of extract: Eurozone economy: European Central Bank cuts rates to historic low of Source of extract: Date of extract: Thursday 7 May 2009 19.32 BST Word count: 333 words Date the commentary was written: 27 Jan 2010 Section of the syllabus to which the commentary relates: Section: 2 Candidate name: Candidate number: SUMMARY: The article taken talks about the macroeconomic issue in which tells us that European Central Bank or ECB has decided to cut the interest rate. The interest rates will come down to 1%. According to the article, this was the fourth time in 9 months that this action has been initiated by the European Central Bank (ECB). The interest...
3 Pages(750 words)Book Report/Review

Subprime mortgage crisis of 2007-09 & the recent Eurozone crisis

...Subprime Mortgage Crisis of 2007-09 and The Recent Eurozone Crisis The subprime mortgage crisis and the Eurozone crisis share a lot in common much asthey have their differences. One similarity between the two crisis is with respect to their causes. In both cases, the interest rates were lowered so that even parties that were sub- prime had easy access to loans. In the case of the Eurozone, countries like Portugal, Ireland, Greece, and Spain (PIGS) spend a lot of money borrowed from the market to finance subsidies and bank bailouts among other expenses (Belkin, Weiss, Nelson & Mix 7). The countries got greatly indebted and could not raise enough money to pay back their debts. Investors...
1 Pages(250 words)Essay

Fall of Eurozone Consumer Prices

... Fall of Eurozone consumer prices Consumer prices in the Eurozone are falling as indicated by official data released by officials at the European Central Bank and Eurostat (the main statistics agency in the European Union). Although this is not a new occurrence in the region, many remain alarmed, as the last time consumer prices fell in the region was in 2009, approximately six years ago. Addressed in the article possible negative consequences of a full blown fall in consumer prices, and possible steps likely to cushion the economy of the region in the event the situation escalates to a deplorable state. Many remain apprehensive about the extent of damage such a situation is likely to have on the banking sector. Just like other... Central...
3 Pages(750 words)Essay

Solving Eurozone Financial Crisis

...Solving Eurozone Financial Crisis The financial crisis hitting Europe has become a common phenomenon that seems to last for days to come considering no plausible solution is forthcoming. Perhaps the primary reason why there is no solution just yet is because too many proposals have been made but agreeing with the best one is a problem. For instance, whereas Ian Buruma sees a solution through political lens, Fareed Zakaria sees a problem in need of financial approach. Buruma’s argument on the political origin of European current crisis holds water. According to him, European single currency dream died in its infancy at the time of implementation since political goodwill to help weaker nations then was lacking. However, for Buruma...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Eurozone for FREE!

Contact Us