• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

'The European Single Currency project was a bad idea from the start and ought to be abandoned.' Critically examine this statement.

Extracts from this document...

Introduction

'The European Single Currency project was a bad idea from the start and ought to be abandoned.' Critically examine this statement. In December 1991 the Maastricht Treaty paved the way for the European Central Bank (ECB) and the European Single Currency - the Euro. On the 1st January 1999 11 member countries replaced their national currency for the European single currency. The single currency is thought to bring Europe closer politically and economically. ...read more.

Middle

Some of these arguments are political but most are to do with the effects a single currency can have of the economies of the membering states. A common view towards the EMU is why should a stable currency which is not facing any foreseeable downfalls be replaces with a currency to which only predictions can be made about its success? The first argument against the Euro which is going to be discussed is commonly known as the 'One Size Fits All'. ...read more.

Conclusion

As an example if there is a decline in Britains exports there would be an automatic depreciation of the pound which would cushion the effect of the economy. However if there is no pound and only Euro then the cushioning effect will be lost as the decline in exports will be specific to Britain. If the countries are having the same currency it seems a logical step to have fiscal integration to follow. This idea is intimidating and makes the prospect of the nations loosing sovereignty even more realistic. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level European Union section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level European Union essays

  1. The Institution of the European Union and Theories.

    countries speak the same language so instructions in different languages had to be put on bottles. This is done so consumers can understand the details. Labelling and packaging is carried out by Packgo which is a firm that Boots employees to do this.

  2. Regulation 2560/2001 on cross-border payments in Europe.

    EU member states. International transactions are submitted to the National Central Bank (NCB) of the originating country and are converted - if necessary - into a format that is comprehensible for TARGET. Through TARGET, the payment is then sent to the NCB of the destination country.

  1. European Single Currency.

    Method I will carry out questionnaires and surveys to find out the affects of EMU on Vodafone UK. I will give a questionnaire to Vodafone UK asking them what their views are on joining the Euro. I will look at the affects of the Euro on Vodafone with regards to exchange rate mechanism and price transparency.

  2. The Euro.

    In practice, most EMU countries are likely to arrange for the changeover to be formally completed some months before 1 July 2002. Existing banknotes and coins will therefore continue in circulation for some years. Until euro banknotes and coins are introduced on 1 January 2002, only these existing banknotes and coins can be used for cash transactions in EMU countries.

  1. The Euro

    COUNTRIES INVOLVED There are currently 12 member states of the European Union utilizing the Euro: Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, Netherlands, Austria, Portugal and Finland. Additionally, six non-EU countries and territories use the euro as a form of payment: * Monaco * Vatican City * San Marino

  2. Can the euro challenge the dollar as the world's international currency?

    1990 Stage 1 of European Monetary Union (EMU) begins with removal of exchange controls across Europe. People and businesses can now move as much capital as they wish from one country to another. Britain joins ERM. 1992 In February, EU governments sign Maastricht Treaty stating their determination to establish a single currency.

  1. Discuss and evaluate the statement that a 'multi-speed' Europe exists and that it would ...

    But some argue that there is a Multi-speed Europe (a notion introduced by Leo Tindemans). The idea is that integration is taking place at a variable or differentiated pace from Member state to Member state, with countries joining the EU at different times and at different levels, it is also

  2. Euro Coursework: the debate of the single currency and the pro and cons of ...

    The above arguments seem to convey a very positive view of the single European currency. But on the other hand, there are many reasons why people believe we should not participate. Firstly, looking at the moral aspects of the argument, the loss of our own currency would be a loss of our heritage, our independence, and our freedom.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work