3. What are the disadvantages of the Euro

Regarding to the impact which the European Monetary Union has on the banking sector, there is another side of the coin as well. The financial market is growing, including the expense of some reduction in the role of financial intermediaries, what banks often act. Banks may lose some of its traditional business of lending medium and large companies, as the latter can now borrow directly from the money market.

4. Сountries that are not using the Euro as their currency, the conditions of accepting the new currency

However these countries have a membership in the EU, they are still not using the Euro as a common currency: Bulgaria, the UK, Hungary, Denmark, Poland, Romania, Croatia, Czech Republic, Sweden.

The introduction of the euro and EMU are not so unambiguous and simple procedures. There are certain costs of such a transformation, and the threats posed by the new economic conditions .

First of all , we should mention the technical and organizational difficulties of this transition and the associated costs. You can not keep silent about the huge amount of work to transfer all national and private banking accounts of all exchange , banking and other transactions in euros. It is difficult to even imagine the scale works on a computer program refurbish , revaluation of all goods and services, etc. High costs are associated with the preparation of necessary amount of money and with the procedure of exchanging old banknotes for new ones.

Much effort and money has been spent on the psychological preparation of citizens for the transition to the new currency , training and retraining of children and adults, promotion of the idea of monetary union. These costs - material, financial , psychological - fell equally on the participating of the governments , entrepreneurs , financiers, ordinary citizens .

Secondly , it is necessary to mention the costs arising from the Stability Pact , adopted by the participating countries. To bring macroeconomic indicators in line with the convergence criteria , the countries had to introduce restrictive and rigid enough monetary and fiscal policy , which could not but aggravate the unemployment situation.

-5-

5. What will happen in case of it’s rise/collapse

Conclusion

-6-

Bibliography

Euro - Wikipedia, the free encyclopedia. (n.d.). Retrieved December 9, 2013, from http://en.wikipedia.org/wiki/Euro

Pros/Cons Of Euro research paper, Economy essay, term paper. (n.d.). Retrieved from http://www.customessaymeister.com/customessays/Economy/17969.htm

What are the pros and cons of introducing a global currency? (n.d.). Retrieved from http://askville.amazon.com/pros-cons-introducing-global-currency/AnswerViewer.do?requestId=42378601

Міжнародна економіка : Дистанційне навчання. (n.d.). Retrieved from http://lubbook.net/book_488.html

Pros/Cons Of Euro Essay. (n.d.). Retrieved from http://essaymania.com/82316/pros-cons-of-euro

International Currency: Pros & Cons | eHow. (n.d.). Retrieved from http://www.ehow.com/list_6712553_international-currency_-pros-cons.html

-7-

Appendices

Currency: Code: Currency: Code:

Austrian schilling	ATS	Luxembourgish franc	LUF
Belgian franc	BEF	Latvian lats	LVL
Cypriot pound	CYP	Monegasque franc	MCF
German mark	DEM	Maltese lira	MTL
Estonian kroon	EEK	Dutch guilder	NLG
Spanish peseta	ESP	Portuguese escudo	PTE
Finnish markka	FIM	Slovenian tolar	SIT
French franc	FRF	Slovak koruna	SKK
Greek drachma	GRD	Sammarinise lira	SML
Irish pound	IEP	Vatican lira	VAL
Italian lira	ITL