Question 1: Discuss the significance of the birth of the euro. Would you value it as a benefactor or malefactor for European countries' economy? Use examples to support your argument.
IntroductionSince the Roman Empire has a good part of Europe had the same currency, there were 19 centuries have past. However, at the end of 20th century, the euro was born as the currency of the newly formed European Economic and Monetary Union (EMU). As a consequence, the birth of euro had its special significance to the EMU - European single market and Europeans. With aspect to the recent study and research, the significances of the birth of euro not only has advantages but also had disadvantages to European. This essay will first discuss the significance of the birth of the euro with focusing on different parts of the European economy. Then, it will use current and relative examples, especially persuasive data from specific EMU members to draw an argument about value the euro as a benefactor as well as a malefactor for European countries' economy.
Significances and AdvantagesFundamentally, the birth of euro can be considered as a signal to the whole Europe, which contains procedures - harmonization, convergence and integration (Solomon, 1999). The following five aspects can be the most important parts of the euro to achieve and develop European market.
Macroeconomic StabilityIn order to control government expenditure and make a big effort to build a healthy and stable economic environment, the euro will push the European countries to reorganise and strictly manage their public finance. Under the standards of Budget Deficit and Public Debt with other three convergence criteria in the Maastricht Treaty, countries apply to join the EU are required to have annual budget deficits not exceeding 3% of gross domestic product (GDP), public debt under...