The History of the Euro

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THE HISTORY OF THE EURO Henry Willis HENRYWILLISSWIFTFOX.COM


THE HISTORY OF THE EURO BY HENRY WILLIS

WHILE ATTEMPTS TO CREATE A SINGLE CURRENCY ACROSS EUROPE

...have been in place since at least 1979, the euro only became a viable currency fewer than twenty years ago, on July 1, 2002. As of that day, the mark, franc, lira, drachma, and other local currencies ceased to exist.

HENRYWILLISSWIFTFOX.COM


THE HISTORY OF THE EURO BY HENRY WILLIS

MAASTRICHT TREATY

This treaty, otherwise known as the Treaty on European Union, was signed on February 7, 1992, in Maastricht, the Netherlands, and went into effect on November 1, 1993. It set the rules for countries looking to use the euro.

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THE HISTORY OF THE EURO BY HENRY WILLIS

THE MAASTRICHT TREATY CONSISTED OF THREE PILLARS OF THE EUROPEAN UNION:

PILLAR 1:

PILLAR 2:

PILLAR 3:

European Community (EC), and is based on the idea that EU members states should cooperate to achieve common goals, via the EU’s supranational institutions.

The Common Foreign and Security Policy (CFSP), which is to say that EU members should also coordinate in foreign policy matters.

The Justice and Home Affairs (JHA) council, a judiciary branch of the EU.

The euro was effectually intended to tie these pillars together, and thus the European Central Bank was formed to set standard interest rates. HENRYWILLISSWIFTFOX.COM


THE HISTORY OF THE EURO BY HENRY WILLIS

BENEFITS OF THE EURO stabilized European economy helped provide economic growth to the continent strengthened European presence in the global economy at large less volatility with exchange rates

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THE HISTORY OF THE EURO BY HENRY WILLIS

TROUBLE WITH THE EURO Namely: the euro did improve the stability of the region that embraced the tender, to continue running smoothly, that necessitated that all nations had relatively close interest rates. When the EU began to mandate interest rates, that took away the power from the local government, which sometimes used lowered interest rates as a method of stimulating growth.

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THE EURO CONTINUES TO EXIST TODAY AND HAS SINCE INCREASED ITS MEMBERSHIP TO NINETEEN COUNTRIES. HENRYWILLISSWIFTFOX.COM


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