The Euro has existed in one form or another for well over a decade. After much debate and scrutiny in 1991 it was decided that the Euro would be introduced. It officially became the currency of eleven European nations: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain, shortly thereafter. This introduction allowed for a single money supply throughout most of Europe, caused increased transparency of Buisness to buisness prices and stocks throughout the nations adopting. Encouraging long-term investments between firms in different countries by eliminating exchange rate risk. The euro has allowed the European economy to profit from a currency unaffected by inflation. This enables businesses to plan their costs reliably and allows for stable future planning concerning trade within the member states Companies have been doing business across the continent using the Euro for some time now, So why is there such discussion over the sudden appearance of notes and coins.

What does the introduction of paper currency and coins and the loss of the national currencies of the member states mean for the future of

Still, the European Union is convinced that the Euro has the potential to become a serious alternative, or even a replacement for the current international stores of monetary value, The U.S. Dollar, and Japanese Yen. Representatives of the European Union have been courting the central banks of several non E.U. Countries to adopt the Euro as one of their reserve currencies.

For all the advantages a single currency offers - stable cross-border trade, ease of movement for people and products - it has also made Europe's economies more difficult to manage. The European Central Bank sets a single interest rate this affects very wealthy industrial countries such as Germany or France as well as more rural evolving nations such as Portugal. Let's say, a recession develops in part - but only part - of the Euro area. This creates a conflict of interest between countries with weak economies or unagressive industry such as Portugal, or Spain, and those with strong economies and a disciplined economic policy such as Germany. The weak economies want low interest rates, and wouldn't mind a bit of inflation; but Germany is dead set on maintaining price stability at all cost. Nor can Europe deal with it through alternate channels the way the United States does, via tax credits, income supplements, or transferring workers from depressed areas to prosperous ones: Europeans are reluctant to move even within their countries, let alone across the many language barriers The result is a ferocious political argument, and perhaps a financial crisis, as markets start to discount the bonds of weaker European governments. The European union is not yet, nor may it ever be a nation state and accordingly have to find an equal balance until such time that they have the authority to compensate through alternate means. So how do you manage a common currency (a promissory note from a government) without a common government?

the European Union. Many Europeans have often been concerned with the European Union's goal of political integration. Whether or not they have a solid understanding of the day-to-day goings on in Brussels, the role of the European commission, The European Court of Justice etc. they probably did not until now consider themselves of it. The European Union did things that helped or hindered each member state but it was "them", the E.U., or another member state that did it. The Euro forces even those who doubt, the E.U. or are ambivalent towards it to view themselves as of it, as European, and identity is an important part of any political institution. 10 billion pieces of paper has done something that years of treaties and wars has been unable to do, When Italians, Spaniards, and Belgians all have the same notes in their pockets this creates an undeniable sense of community. But there are other more practical advantages for European Citizens o

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Approximate Word count = 1926
Approximate Pages = 8 (250 words per page double spaced)