Saxion University of Applied Sciences

Euro as a Common Currency

The Causes and Consequences of Its Rise and Collapse

Ivanchenko Viktoriia

International Business and Management Studies

352021

C.R. Hoffmeijer – Lavieri

Euro as a Common Currency

The Causes and Consequences of Its Rise and Collapse

Table of Contents

1. Introduction……………………………………………………………………………………………1

2. Summary………………………………………………………………………………………………2

3. The Body of Chapters……………………………………………………………………………...3-6

4. Conclusion…………………………………………………………………………………………….6

5. Bibliography…………………………………………………………………………………………...7

6. Appendices……………………………………………………………………………………………8

Introduction

Introducing on January 1, 1999 the new currency of the European Monetary Union - the euro - has become , of course, an important event in the world. Currently, there are active discussion of the events and analysts are trying to predict the consequences of the introduction of the euro and its impact on all aspects of economic and political life of nations.

As you know, many people - many opinions. This also applies to research in this area . Any small variation in economic policy entails a number of consequences , both positive and negative . Such a global change in the life of many countries , as the introduction of a common monetary

units will result in the series of both predictable and unexpected consequences.

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Summary

In this research regarding the role of the Euro currency in the world monetary system, and would like to start my report outline with distinguishing several issues which I would like reveal throughout this assignment. The first question, which I would like to answer is how did the EU actually came up to providing one currency. The issues concerning the countries that are using this currency are going to be discussed in this chapter as well. Since The European Union issued the Euro in 1995, replacing more than a dozen european currencies with a single one, the world took a large step towards creating a truly international currency. Despite the advanteges of this operation many drawbacks are following this issue as well. This leads us to the next two questions: what are the cons and the pros of providing a single world currency? It would be also interesting to know what countries use the Euro as a national currency. Afterwards, it would be reasonable to know why several countries from the EU are still not using Euro as their currency, and what are the criterias by which the given coutries decide whether accept the Euro as their currency or not. The last chapter is going to represent the possible events in case of rise or collapse of the Euro currency.

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