One of the main reasons for introducing the euro currency was the consolidation of the European Region.If you look at the global economy in terms of its centers, you can see that it is North America (USA and Canada), the Far East (Japan, China and several other countries) and Western Europe (the European Union).Having a single currency is a very powerful tool to bring together the country's industrial capacity, as the lever is in competition with other economic regions.
With the introduction of the European Union, it was decided to eliminate most of the barriers to free economic development of Europe as a region.The European Union should mean the freedom of movement of people, goods and capital, that would be impossible in
the presence of permanent transfers from one currency to another.In addition, the transaction would be carried out with the inevitable losses that have slowed down the economic development of all the countries of Western Europe.
Eliminating market segmentation
Many products in European countries before the introduction of the euro area vary greatly in price.This was particularly evident in certain foods, alcohol and tobacco products and banking services.With the introduction of the euro area prices, though not completely, but still quite strongly aligned, as the national currency will no longer serve as a barrier to the free movement of goods between the two countries.In addition, now there is no barrier to entry for many enterprises single euro zone has eliminated this barrier.
In the past, Europe had 11 central banks, which together fought against inflation, despite the fact that everyone had an interest.Now there is a central bank that conducts a unified policy.Introduction of the euro will not only simplify and make the banking system more robust financial situation, but also reduce the need for Europe in the foreign exchange reserves.
No national currency in Europe in terms of economic potential could not match the Western European region and therefore could not serve as well as a world currency.Before the introduction of the euro the global economy dominated primarily the US dollar.Currently, European countries created their own currency area, which allows them to influence the situation, since the euro is now a major player in this field.This results in greater stability not only of the economic system of Europe and the whole world, because the financial system has become bipolar.