The Euro Essay, Research Paper

11 states merged currencies to make the euro. Europe? s leaders say that the incorporate currancy will advance bussiness, underpin integrity and beef up their function in universe personal businesss. Officially at midnight on New Year? s Eve the euro became the common currency of Germany, France, Italy, Spain, the Netherlands, Belgium, Austria, Portugal, Finland, Ireland and Luxembourg. This event is hailed as a historic turning point in Europes history. By unifying Europe has created a powerful new economic force. Britain, Denmark and Greece are besides trusting to fall in in the following decennary. ? If the postwar epoch ended nine old ages ago with the autumn of the Berlin Wall, so our hereafters begins on Jan. 1, 1999, ? German Chancellor Gerhard Schroeder wrote in the Handelsblatt bussiness daily. The new euro currency is deserving 1.95583 German Markss, 6.55957 France francs, 1,936.27 Italian lire, 166.386 Spanish pesetas. The euro is expected to opne the market at approximately $ 1.1665, 133 Nipponese hankerings and 70 British pence. The currency will be easy fazed in. The new euro notes and coins will non be issued to replace the Irish lbs, Portuguese escudos, Austrian schillings until 2002. The currency will nevertheless come into consequence instantly for non-cash transacti

ons ranging from government bond issues to credit card and check purchases. Euro figures will appear along side national currencies on pay checks, phone bills and bank statements. The United States dollar will now have a strong competator in the currency market. The euro-zone will be a powerful player in the world maket with its 20% of world economic output and 18% of world trade. ?The euro becomes the strong arm of the strongest economic region of the world,? Austrian Chancellor Viktor Klima said in Vienna. ?From Lisbon to Helsinki, from Paris to Vienna, the euro is a remarkable symbol of our common identity,? said France Finance Minister Dominique Strauss-Kahn. ?Tomorrow I won?t be any less. French ? but we will all be a little more European.? ?Europe is finished the century by sending a message of peace,? said Italian Treasury Minister Carlo Ciampi. ?The conflicts that have so often gripped our continent are a thing of the past.? The union of the currency must be backed up quickly with progress to increase European cooperation in fields such as foreign affairs and defense. These views of closer political integration will fuel euro-skeptic opinion in those countries that have stayed out of the monetary union through fears of losing national independence.