The euro is the official currency of the following 12 European nations: Belgium, Germany, Greece, Spain, France, Luxembourg, Ireland, Italy, The Netherlands, Austria, Portugal, and Finland. Although it has been the official currency since January 1, 1999 it became physical tender which can be used by all participating countries on January 1, 2002. The introduction of the euro into the world was truly a historic event; it represented a unity never before seen in the history of Europe, a common currency. After years of negotiations and much skepticism from around the globe, the implementation of the euro is no longer an abstract ideal, but a change that nations, corporations, and investors must accept.
The final phase of the euroÃÂ¢Ã¢ÂÂ¬Ã¢ÂÂ¢s implementation will occur over the next six months and Europeans will have to adapt to a new mindset. For a while many will feel like tourists in their own countries.
However, once people in Europe and around the world become comfortable with the euro, these 12 nations are to represent a single market place with the European Central Bank controlling its economic success. Since the euroÃÂ¢Ã¢ÂÂ¬Ã¢ÂÂ¢s inception, the way people travel, the way people do business, and the way corporations and countries invest forever changed. For Americans the question to ask is how will the euro in the long-term impact the growth of our economy.
Generally there have been a few schools of thought on how the American economy will be impacted by the euro. The first one supports that the United States can only benefit as the euro is established as an international currency. U.S. administrations have long been supporters of global cooperation, believing that whatever is good for Europe is good for the U.S. Bill Clinton even stated, "A strong and stable Europe, with open markets and healthy...