1. How did the eu came up to providing one currency

The elements of monetary integration in Western Europe were formed long before the creation of the European Union (EU). The Roman Treaty, which has fixed its creation, preceded The agreement on multilateral currency payments between France, Italy, Belgium, Netherlands, Luxembourg and joined them with the 1947 Western occupation zones of Germany, the agreements of 1948 and 1949. of intra-payments and payments between the 17 OECD (The Organisation for Economic Co-operation and Development) countries has preceeded The Roman Treaty, which has fixed the European Union (EU) creation. First large-scale attempt to organize such an alliance was made in 1971 when the EU member states adopted a program of phased establishment of economic and monetary union by the year 1980.The EU Council of Ministers has adopted "Werner Plan" for up to 10 years - until 1980.

Despite some progress in the integration process, "Werner Plan" had failed. This was due to differences in the EU, in particular - between national sovereignty and attempts in supranational regulation of monetary and credit relations , differences in the pace of economic development, crises from 70s to early 80 -ies. Long stagnation of the EU integration lasted from the mid-70s to mid- 80s .

The situation became to change qualitatively in the 80s . By this time, the economic interdependence and interstate regulation has increased . The extensive institutional and organizational structure has been formed . Changes in the monetary sphere were organically linked with the completion of the liberalization of capital movements and the formation of a single market . All this contributed to the adoption of the program to create a political , economic and monetary union , developed by Jaque Delors Committee in April 1989.

The Maastricht Treaty of the European Union was based on “Delors plan” and was developed by December 1990. It has been providing the gradual formation of the Economic and Monetary Union. In accordance with the Treaty of Maastricht, the formation of the Economic and Monetary Union is devided in three steps:

The first phase ( July 1, 1990 - December 31, 1993 ) - the stage of formation of economic and monetary union of the EU.

The second stage ( January 1, 1994 - December 31, 1998 ) was devoted to further , more specific training of member countries to adopt the euro .

The third stage ( January 1, 1999 - July 1, 2002 ) was the stage of practical transition of the member countries to a single currency .

-3-

2. What are the advantages of the Euro

The transition to monetary union and the euro offers great opportunities to investors, producers, consumers. The main advantages are the following.

1. Benefits for the EU economy as a whole. Overcoming the fragmentation of markets within the EU will lead to a synergistic effect, whereby the capacity of the single market will be substantially higher than the amount of previously separeted markets.

2. Business Benefits. Businesses will benefit, primarily due to the elimination of transaction costs as a currency conversion from one to another, and with bureaucratic procedures when crossing national borders.

3. Advantages for investors and financial markets. With the formation of the monetary union was created the second largest financial market in the world that offers more opportunities of investments and fundings than the previous separated currency markets.

4. Impact on the banking sector. Previously marked "pluses" of the introduction of the euro - the elimination of foreign exchange markets, reducing transaction costs, lowering inflation, attractive interest rates. These aspects increase the competitiveness of the European financial market agents, including banks.

5 . Benefits for consumers. EU citizens receive undoubted benefit from the introduction of the euro and the transition to monetary union. The decrease in prices for consumer goods and services , expand product range and choice , improving of the quality of the products. We should expect that it will favorably influence the development of tourism , will be more intense migration flows within the Union , including the purpose of studies .

-4-