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Indications of a Strong Euro A single currency has always been a dream for many European countries as it would symbolise stability and unity both economic and political The Euro was launched in 1999 amid much Euro-phoria Many people believed that the Euro would replace the dollar as the main international currency a medium of exchange store of value and unit of account Not only that but they also believed that it would also be used as the main shipping currency especially within Europe Saddam Hussein even hoped that the Euro would spell an end of the US dollars reign and the USs supremacy and played his part in promoting the Euro by pricing his oil exports in Euros It is many peoples opinion that a single market would be hard to maintain without a single currency The economic benefits of the Euro and ECB are as follows Firstly efficiency gains arise as the single currency removes the need to hedge against foreign exchange risk when dealing within the Euro zone The second benefit is greater macroeconomic stability as the single monetary policy from an independent central bank provides European countries with an environment of price stability A single currency should result in lower interest rates as all European countries would be locking into German monetary credibility The third advantage and possibly the most important as its at the core of EU policy is a more integrated vibrant market The single currency promotes competition greater economic integration and deregulation in Europe Also because the Euro would have the enhanced credibility of being used in a large currency zone it would be more stable against speculation than individual currencies In recent years the economic picture has brightened in Europe Before the launch of the Euro US GDP growth was projected at 22 in 2000 whereas Europes GDP growth would be 27 Some countries chose not to join the Euro from
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