The Euro

Paper Summary:

The euro is the currency of twelve of the twenty-five European Union member states. This paper shows that although the euro can be seen simply as a mechanism for perfecting the Single European Market, facilitating free trade between the members of the Eurozone, the euro is also a key part of the European project of political integration.

From the Paper:

"A single currency zone opens up huge opportunities for both capital suppliers (savers and investors), and capital users (private or corporate borrowers and issuers of equity capital). The euro helps provide a single market for financial operators. At the same time, small and fragmented national capital markets evolve into a larger, deeper and more liquid financial market. This is beneficial to both savers and borrowers: 1) Savers benefit from a wider and more diversified offer of investment and saving opportunities. Investors can spread their risks more easily, and have an appetite for riskier ventures; 2) Private and corporate borrowers as well as equity issuer's benefit from better funding opportunities because money is easier to rise on capital markets."

More papers on The Euro:

• Essay # 90954 : "The Euro Currency Markets"
• Analytical Essay # 130495 : "Impact of the Euro on U.S. Economic and Monetary Policy"
• Essay # 65355 : "Britain's Currency Debate Over the Euro"
• Essay # 36935 : "Introduction of the Euro"

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