The Euro

The Euro: Europe's Common Currency

Table of Contents

Abstract 3

The Maastricht Treaty 4

Why A Common Courtesy? 5

The Implementation Of The Euro 6

Versus The Dollar 7

International Impact 8

Potential Problems 9

European Union Expansion 11

Personal Experience 13

Conclusion 14

References 15

Abstract

On 1 Jan 2002, the euro became the legal currency for over 300 million people living in Europe. In this paper I will detail how the euro came to be and the planning that was needed to undertake such a huge project. I will also discuss the euro's impact against the U.S. dollar as well as its current and potential impact on international business. Finally, I will explore the possiblity of euro expansion on the international business scene.

The Euro: Europe's Common Currency

The Maastricht Treaty

For hundreds of years Europe was the scene of many frequent and bloody wars.

English: Various Euro bills.

Election results since 1979

Political composition of the 7th parliament

For example, in the period 1870 - 1945, France and Germany went to war against each other three times and many European leaders believed that the only way to secure Europe with a lasting peace was to unite them economically and politically. So, in 1950, French Foreign Minister Robert Schuman proposed a plan to integrate the European coal and steel industries. As a result, the European Coal and Steel Community was formed in 1951 with six member countries: Belgium, West Germany, Luxembourg, Italy, France, and the Netherlands.

This group was such a success that these same six countries decided to further integrate other sectors of their economies and in 1957 the Treaties of Rome was signed. This treaty created the European Atomic Energy Community (EURATOM) and the European Economic Community (EEC). It was with the creation of these alliances that the member countries moved a...