THE EURO By Brendann Murphy

The EURO and Why Common currency of 17 European Nations – Why? Adopted as alternative currency in noncash transactions in 1999 Stimulate cross-border investment Eliminate rising exchange rates Increases stability Enhances credibility Simplified Billing Expanded Markets

ECONOMIC MONETARY UNION What is it? – A trade bloc composted of the customs union, the common market and a monetary union. – Est. through complete international trade pact – Step before complete economic integration Is every European country apart of this? – No, one example would be THE UNITED KINGDOM. They still use pounds as national currency. – Economic Unions around the world es_%28World%29.png es_%28World%29.png Euro countries are in red

Who designed it and how can is spot it? PART 1: EURO COINS Euro Coins: Belgium artist Luc Luycx. Description and Denominations – 8 coins (1,2, 5, 10, 20, & 50) Backs or National sides are different in every country except… – 12 stars around the edge of the coin. – Year it was made. Bigger = Better (more money) National side of every coin –

PART: 1 COINS CONTINUED The Front or Common sides of the Coin – All the same in every country 1, 2, & 5- have a design that shows Europe's place in the world – 1,2 show EURO countries without borders 10, 20, & 50- show individual countries that use the EURO. – 20 coin has 7 dents on the side in the shape of a Spanish Flower – Common sides to every coin » tml tml

Who designed it and how can I spot it? Part 2: EURO BANKNOTES Euro Banknote: Austrian artist Robert Kalina. The banknotes are the same in every country The Front of the Banknote – Each has windows and gateways, representing European spirit of openness and co-operation. – Each have the 12 stars, representing dynamism and harmony between European nations. The Backside of the Banknote – Contains the Seven Denomination 5, 10, 20, 50,100, 200, & 500 – Each Denomination is different color and has own architectural style. Each style is unique and different

DENOMINATION DETAILS 5. The euro 5 is 120 by 62 mm, it is grey, and shows Classical architectural style. 10. The euro 10 is 127 by 67 mm, it is red, and shows Romanesque architectural style. 20. The euro 20 is 133 by 72 mm, it is blue, and shows Gothic architectural style. 30. The euro 50 is 140 by 77 mm, it is orange, and it shows Renaissance architectural style The euro 100 is 147 by 82 mm, it is green, and it shows Baroque and Rococo architectural style The euro 200 is 153 by 82 mm, it is yellow-brown, and it shows Iron and Glass architectural style The euro 500 is 160 by 82 mm, it is purple, and is done in the Modern 20th Century architectural style. ml ml

THE EU AND THE EURO Only 17 of the 27 EU members are in the Euro zone and use it as payment for now until the other seven member qualify to adopt it and may not refuse it as payment. (exempt United Kingdom, Denmark, and soon to be Sweden.) – Under the treaty of joining the EU, a country must use EURO once it meets the criteria. Ensuring national currency is withdrawn Prices of goods are converted and displayed People are kept well informed Legal issues And a “changeover scenario” environment Denmark, UK, and Sweden still accept the Euro as payment but don’t use it as national currency.

I Have Good News and I Have Bad News PROS End currency instability, this enhances its credibility against individual currencies, and enables exporters to project future markets Consumers don’t change money when traveling and there would be less red tape transferring large sums of money (no transaction charges). Business don’t pay hedging costs, no threat against currency fluctuations, and more time because no administrative costs of accounting. Low interest rates, locking all European countries into German monetary credibility. Stability Pact force fiscal responsibility to EU and enhance credibility creating more jobs, investments, and lower mortgages CONS 15 nations with different economies, languages and no mobile labor market like US. Language is a great obstacle for a mobile labor market. Some areas will be greatly rich and others in deep depression. Stability Pact doesn’t allow countries to dictate own economies. Countries cannot raise export prices, borrow money, cut taxes, or boost job creation in a recession. National Sovereignty, because the of the monetary union, economically successful countries will have to work along side weaker ones risking higher inflation. The cost of introducing a new currency to a country will cost billons because of necessary changes, like educating, changing labels, adjusting tills, etc.

EURO COMPARED TO DOLLAR IRELAND – Ireland’s Euro has a harp representing a traditional symbol in Irish culture. It also says “Eire” meaning Ireland – $1.00 = €.76 – €1.00 = $1.32 GERMANY – Eagle represents the traditional German symbol of sovereignty. There is lettering on the edge of the coin that reads EINIGKEIT UND RECHT UND FREIHEIT (unity, justice and freedom)

My Opinion First, the Euro will only work if the Stability Pact act is changed and allows countries to attempt to fix themselves Second, the European nation must become affluent in one language as well as their own. This will eliminate any problems involving Mobile Labor Work Last, the Euro needs to be less cost effective when put into a new country. If this doesn’t happen more than likely it will eventually be unable to rebound – y/25081.stm y/25081.stm –