abhishreshthaa
Abhijeet S
EURO
In December 1991, leaders of the EC member states met in maastrich, the Netherlands, to discuss the next steps for the EC. The result of the mastrich meeting surprised both Europe and the rest of the world.
For months the countries of the EC had been fighting over the issue of the common currency. Although many economists believed a common currency was required to cement a closer economic union, deadlock had been predicted.
The British in particular had opposed any to establish a common currency. Instead the 12 members signed a treaty that committed them to adopting a common currency by January 1st, 1999, and paved the way for closer political cooperation.
The treaty laid down the main elements, if only in embryo, of a future European government : a single currency –the euro-a common foreign and defence policy ,a common citizenship and an EU parliament with teeth of more immediate interest are the implications for business of the establishment of a single currency.
The euro is a currency unit now used 11 of the 15 member states of the European union ;these 1 states are now members of what is often referred to as the euro zone. Establishing the euro required participating national governments not only to give up their own currencies ,but also to give up control over monetary policy.
Governments do not routinely sacrifice national sovereignty for the greater good, indicating the importance that attach to the euro. By adopting the U.S. dollar.
According to the maastrich treaty , to join the euro zone member countries had to achieve low inflation rates , low long-term interest rates, a stable exchange rate, public debt limited to no more than 60 percent of a country’s gross domestic product, and current budget deficits of no more than 3 percent of GDP.
Initially there was considerable skepticisms that this would be possible. However by the spring of 1998 it was clear that of the 12 countries that had signaled their intention to join the euro zone, only Greece would not make the criteria . for now three is speculation that great Britain and Sweden may join . the 11 countries that made the grade and agreed to the euro locked the their exchange rates against each of the 11 countries .
however in each participating state the national cu8rrency stood for a defined amount of euro . after January ,euro notes and coins were issued and the national currencies were taken out of circulation. By mid 2002, all prices and routine economic transactions within the euro zone were in euros.
In December 1991, leaders of the EC member states met in maastrich, the Netherlands, to discuss the next steps for the EC. The result of the mastrich meeting surprised both Europe and the rest of the world.
For months the countries of the EC had been fighting over the issue of the common currency. Although many economists believed a common currency was required to cement a closer economic union, deadlock had been predicted.
The British in particular had opposed any to establish a common currency. Instead the 12 members signed a treaty that committed them to adopting a common currency by January 1st, 1999, and paved the way for closer political cooperation.
The treaty laid down the main elements, if only in embryo, of a future European government : a single currency –the euro-a common foreign and defence policy ,a common citizenship and an EU parliament with teeth of more immediate interest are the implications for business of the establishment of a single currency.
The euro is a currency unit now used 11 of the 15 member states of the European union ;these 1 states are now members of what is often referred to as the euro zone. Establishing the euro required participating national governments not only to give up their own currencies ,but also to give up control over monetary policy.
Governments do not routinely sacrifice national sovereignty for the greater good, indicating the importance that attach to the euro. By adopting the U.S. dollar.
According to the maastrich treaty , to join the euro zone member countries had to achieve low inflation rates , low long-term interest rates, a stable exchange rate, public debt limited to no more than 60 percent of a country’s gross domestic product, and current budget deficits of no more than 3 percent of GDP.
Initially there was considerable skepticisms that this would be possible. However by the spring of 1998 it was clear that of the 12 countries that had signaled their intention to join the euro zone, only Greece would not make the criteria . for now three is speculation that great Britain and Sweden may join . the 11 countries that made the grade and agreed to the euro locked the their exchange rates against each of the 11 countries .
however in each participating state the national cu8rrency stood for a defined amount of euro . after January ,euro notes and coins were issued and the national currencies were taken out of circulation. By mid 2002, all prices and routine economic transactions within the euro zone were in euros.