Quote:
Originally Posted by SaintessHeart
Adopting the Euro is not a bad idea actually. When it first came into use in the early 1990s in 16 of the 27 member states of Europe, it became the other currency to compete the US in terms of strength after the Japan bubble burst. It helps gather growing economies to contest the US's production and financial capability, forbidding the USD to have a total dominance in the forex market, and in such world trade then creating a monopoly, which is disastrous to global competition. How would you like it if you piss the SINGLE form of global credit off, and the country's banks/government pegs your currency so low against to theirs? It is as good as saying goodbye to your local economy.
Unless you want to adopt the RMB. Heck they don't even have proper security or protocols in printing their banknotes, that is why their valuation is crazy.
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Correction: the Euro was first introduced to international financial markets on January 1, 1999 and the coins and banknotes were released on the same day in 2002.
In terms of competition against other larger financial powers, namely the US, it can be a good thing if those countries using the Euro were acting as one nation. The fact of the matter is that the Euro, and the European Union at that, were created was to imitate the US, but the truth is that this can never happen. Each country in Europe has its own history and culture, unlike in the US where the states have been part of a union for much of US history. They can't work well together as the US states do, and this recent crisis in Greece is proof enough. Despite the Euro's presence, each country still has its own individual economy. The theory you presented is correct, but as we can see, it didn't work like that in practice considering nothing much has changed for the EU member countries except for maybe Germany after the Euro was introduced after all.