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The Euro zone was formed by the member states with an aim of economicintegration and interdependence which would only be achieved throughpeaceful cooperation of the European nations Paul 2009 This is azone of monetary union where member states agree upon using Euro as thesingle currency A monetary union is a zone in which members reacheconomic goals through mutual monetary policy and currency rate Themotion for its creation was introduced in 1962 and affirmed in 1969 inEU summit in Hague It was to achieve its goals through three phaseseconomic integration of EU member states irreversible convertibilityof currency and finally fixing permanent exchange rates Alcidi Gros Oh 2010 Even though there is consensus on the monetary policy in Eurozone there is no agreement on mutual fiscal policy among member statesThis zone has a current membership of 17 countries and there have beenvery many achievements made from the alleged benefits Additionallythere have been challenges resulting to the financial crisis and alsomany future plans to improve conditions of doing business The first achievement of Euro zone in relation to reducing cost of doingbusiness is that monetary integration resulted to lower transactioncosts among member states Such integration eliminated the exchangesbetween one currency to Euro and therefore save resources Inbusinesses involving hand to hand transactions this cost reduction hasbeen more impactful as compared to using bank transactions This ismajorly because of imbalances in the advancement of bank systems amongthe member states A study was done by the European commission and itwas found that monetary integration would result to savings indealers margin of 04 of GDP across member countriesThe international acceptance of using the euro as the single currency inthe zone can be described as the most significant achievement that theEuro zone has made in its existence Through the use of a singlecurrency companies in the zone are more stable and engage with eachother in the long term business contracts A national economy alsoresulted from the common currency because a single monetary
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