The European Union has 28 member countries and the €urozone counts 19 of them. Denmark, Sweden and the United Kingdom are among the most important member countries not participating in the single currency, in addition to six other new European Union members who still have to prove that they have taken measures for an ireversible progress toward a functioning free-market and competitive economy and some other requirements to build a lasting macro-economic stability. Within this continental stage, the €uro could have become the currency to consolidate the European Union, turning into a real international reserve currency if the European countries had followed in good faith the progressive course towards a stable Confederation of Nations, but the rejection by 2 of the 28 Union members of the draft Constitution previously approved by the other 26, which could have opened the way toward continental stability, served as fertilizer to the seed of discord. As anyone might expect, a common currency is unsustainable buffeted by a multitude of countries stubbornly clinging to independent monetary and fiscal policies.
As it is highlighted in the following article, Europe is trying that the puzzle does not disassemble, but if the monetary union collapsed, the project of a United Europe will be dismantled from its own base.
Why the euro was created
by Michael Maibach
There are three reasons the euro was created. First, the euro aimed to deepen the EU single market by eliminating currency exchanges across national borders and creating transnational cost competition. Second, the currency was meant to become an alternative reserve currency to the U.S. dollar. And third, it could set the stage for a unified European superstate. Ironically, the euro has rapidly become a central cause of EU disunity.
While the euro is a single currency, the eurozone has 19 separate parliaments, heads of state, and national banks. These national banks, plus the European Central Bank (ECB), make up the Eurosystem – akin to the U.S. Federal Reserve system. As you might imagine, one airplane and 19 pilots is a formula for an economic plane crash.
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casos de empresas que se sienten atraídas a volver a operar desde ese gigantesco mercado.
