Euro Essay

The Euro

      Before 1992, if you wanted to shop in fifteen European countries, you would need

four or five different currencies. In 1992, fifteen countries banned together to form one

unified currency: the euro.   The euro was soon to be competition for the American dollar

as a world currency.

To become one of the countries that use the euro, the countries had to meet certain

criteria. The criteria consisted of requiring stable institutions guaranteeing democracy, the

rule of law, human rights, and the protection on minorities. This caused the countries to

start using the euro, one by one. Austria, Finland, Belgium, Germany, Italy, Spain,

Portugal, France, Ireland, and Netherlands were the first countries that began using the

euro in 1999. It took from 1992 until 1999 to fully integrate the euro in these countries

that would later become known as “The Euro zone.”

The remaining five countries did not integrate the euro as their currency until

later.   Greece came in 2001, Slovenia integrated in 2007, Cyprus and Malta joined in

2008, and Slavia will be fully included in 2009. In the years following, Lithuania will

join in 2010, Estonia in 2011, and 2012 or later, Bulgaria, Hungary, Latvia, Czech

Republic, Poland, and Romania will all make the euro their official currency.

Although many countries have joined the movement towards the euro with no

concerns, many have not.   Germany, the world’s third largest economy, has concerns.   In

the 1920’s, Germany’s economy suffered hyperinflation and devaluation which

devastated the citizen’s savings.   Since then Germans have been scared that the German

mark would become weak like the Italian lira, and the Spanish peseta.   In recent months,

polls show that many Germans are favoring the euro because of its low inflation and high

valuation.

      While the euro is being integrated in many countries, citizens are having to...