European economic integration on the world monetary pattern of what impact

In a nutshell, the positive significance of the euro focuses on the construction of European integration has a new "booster", the international economic development is facing a new pattern.

2.1 The euro to promote the unity of Europe

The birth of the euro marks the fall of the Roman Empire in Europe since the realization of the monetary unity, which has experienced a long 19 centuries. But the essential difference between the two is that the Roman Empire is the use of force to conquer foreign countries, the imposition of a single currency, while today's European Union is economic, political, that is, peaceful and gradual means gradually towards unity, the member states take the initiative, voluntarily cede part of their sovereignty, including monetary sovereignty, the introduction of the euro is the inevitable result of this process. It is worth mentioning in particular that whenever there is an uneven development of the member states and regional differences due to economic, historical, social and cultural factors, the integration process of the EU is divided into three steps: harmonization - convergence - integration. The use of legal tools is, in the coordination and convergence stage mostly in the form of directives (directive), put forward the overall goal, set the time to achieve the target, but by the member states in accordance with the actual situation of their own country to take specific measures and actions; in the harmonization stage, the promulgation of regulations (reglement), immediately and unconditionally in all member states of the European Union to enter into force. The highest form of harmonization is the formation of "*** with the policy" (la politique commune), such as the EU's *** with the agricultural policy (PAC), or the establishment of economic and monetary union, such as the euro discussed in this paper. But no matter what, the most important feature of the EU integration process is that, from coordination to convergence and then to unification, from the beginning to the end to follow an inherent, step by step to promote the laws of logic, a ring tightly linked to a ring, the formation of the water to the trend, with the irreversibility of the situation. The establishment of a free trade area leads to a customs union, the customs union gives rise to a unified market, and the unified market requires economic and monetary union and political union. It can be seen that each stage of the EU integration process is both the result of the above and the introduction of the next. The significance of the euro is also here, its implementation will constitute a new impetus to promote Europe to a higher level of union.

First of all, the euro will prompt the EU countries to rectify and strictly manage their own public **** finances, to prevent excessive government spending, and strive to create a healthy and stable economic environment, because the "MaYao" stipulates the budget deficit standards and public debt standards, together with the other three convergence criteria are irreversible, that is to say, countries applying for joining the euro zone must simultaneously meet the above five conditions, and once Become a euro country, must always accept the constraints of the above five criteria, no violation, not to mention withdrawal. For example, in order to catch up with the first train of the euro, Italy had to carry out a painful reform of its national economic system, resulting in the reduction of the government deficit from 11% of GDP in 1990 to 3.9% in 1993. Even France had to work hard to bring its fiscal deficit down to a decisive 3% or less by the end of 1997. Almost at the same time, the European Union's budget deficit fell from a record 6.2 percent in 1993 to 2.4 percent in 1999 and only 1.7 percent last year. Another, more telling indicator is the inflation rate. Since the level of inflation is a decisive factor in monetary stability, the MA clearly stipulates that curbing inflation and stabilizing prices are both the first and foremost requisites for EU member states to be admitted to the eurozone and the primary task of the European Central Bank. From the member states, especially the actual operation of the economy of the euro countries, the euro effect is very obvious. In the last century, the 1970s, the average price index of the European Union countries as high as 10.6%, after the 90s continued to decline in 2001 to 1.8%, the euro area for 2.1%. Portugal, Sweden and other countries have performed particularly well, the inflation rate fell from 13.3% and 10.2% in 1990 to 2.2% and 0.6% in 1999, respectively. France in the past three years is more unique, in 1999 when the euro was officially introduced, its annual inflation rate of only 0.8%, almost negligible, and only 2.1% in 2001, far below the upper limit of the standard stipulated in the Covenant.

Secondly, the unified European currency is bound to strengthen the EU's internal market competition, promote the flow of goods and services, capital and personnel flows, which forces the EU countries, especially the euro countries to increase taxes, wages, social welfare and social security system reform efforts, as soon as possible to achieve convergence of tax and social security systems, with a view to narrowing the obvious differences with neighboring countries, to attract talent and investment. In order to reduce the obvious differences with neighboring countries and to attract talents and investments. To this end, the nine countries of the European Union have implemented a minimum standard wage system. According to the actual amount of calculation, can be roughly divided into three categories of countries: in Spain and the United Kingdom, the minimum standard wage is equivalent to 34% and 37% of the country's average wage; in Belgium, Greece, Luxembourg and the Netherlands, the minimum standard wage for the country's average wage, respectively, 39%, 41%, 42% and 44%; France and Portugal, the highest, respectively, for 49% and 57%.

The third good effect of the euro is to stimulate production and trade for EU businesses. In the absence of a unified currency, enterprises, especially small and medium-sized enterprises, in the EU15 cannot but take into account exchange rate fluctuations in the production and sales process, and the resulting additional transaction risks and costs (such as foreign exchange bid-ask spreads, bank charges on payments and transfers, etc.), including the uncertainty of product prices. It will not be forgotten that it was the entrepreneurs in the French department of Dauphiné and the bosses in the German state of Bavaria who lost their homes overnight in 1992-93 as a result of the sudden and drastic devaluation of the Italian lira. After the implementation of the euro, because the currency exchange rate between the euro zone has been locked, such risks no longer exist, similar tragedies will not naturally repeat. According to French experts estimate that the cost savings of trading with the euro is equivalent to 0.3% to 0.4% of the gross domestic product of the EU 15 countries, only France can spend 25 billion French francs less each year. For businesses, this means lower costs and increased competitiveness. The euro also greatly improves the transparency of product prices and service prices, which is conducive to fair competition, deepens the unified European market, improves the macroeconomic environment for the survival of enterprises, and ultimately promotes the development of the entire EU economy and trade. Indeed, the EU intra-regional trade in the past has always accounted for 60% of all foreign exports of EU member states, and now this share has increased to nearly 80%, amounting to 1.6 trillion euros. In this sense, the euro is a factor in Europe's economic growth.

Fourth, the creation of the euro is leading to the reorganization of assets in the European financial markets, or to promote the harmonization of financial markets in Europe. This is because the elimination of exchange rate risk following the implementation of the euro has enabled an increasing number of investors and issuers of securities to raise large amounts of capital centrally at low cost, to expand the trading capacity of stocks and securities and to obtain economies of scale in the short term, thus attracting more conglomerates, multinational corporations and individuals to diversify into the euro area using euro instruments.In 1998, prior to the introduction of the euro, the financial markets in Europe The total amount of dollar-denominated securities issued was $409 billion, and after the official launch of the euro in the second year, it reached $470 billion, an increase of 15 to 20%. And during the same period, the total amount of euro-denominated securities jumped from $221 billion in 1998 to $522 billion in 1999, a one-and-a-half-fold increase.

Fifth, more important is the positive impact of the euro on the employment situation in Europe. For a long time, popular in Western economics, especially in France, a traditional concept that the currency and employment has never been a pair of irreconcilable contradictions. Currency depreciation is conducive to export earnings, is conducive to the creation of jobs, a strong currency to suppress inflation at the same time inhibit economic growth, resulting in underemployment. In fact, it is not so absolute. As we all know, Switzerland, the United States and Germany are countries with strong currencies, but also maintain a high economic growth rate and employment rate. The French franc was devalued five times between 1981 and 1987, but the French economy did not pick up as a result, while the unemployment rate jumped from 7.4% to 10.5%. Therefore, a weak currency does not necessarily guarantee employment, just as a strong currency does not necessarily lead to unemployment. The key is to see whether the value of the currency is a true reflection of the country's overall economic situation, such as the inflation rate, the country's fiscal budget, the external trade situation, and the competitiveness of the country's products, and so on. By comprehensively analyzing the data of the EU in these aspects over the past three years, it is shown that the euro fully reflects the overall economic strength of the EU, and thus plays the role of "stabilizer" and "booster" for the development of the EU economy. Stability enables enterprises and economists to think long term, enhance investment confidence, increase investment, and expand the scale and capacity of reproduction. Stability enables free trade to be institutionalized and sustained, and promotes the optimal allocation of human, material and financial resources, all of which will directly or indirectly create more employment opportunities. According to the information provided by Eurostat, since the introduction of the euro in 1999, the unemployment rate in the European Union has been on a downward trend year by year, having fallen from 10% (more than 18 million people in 1999) to 7.6% in 2001. France's army of unemployed, which was as high as 2.5 million in 1999, or 11.1 percent of the employed population, is now at a record low of less than 2 million (8.8 percent), an annual decline of 15 percent.

Finally, the euro drives and promotes European political integration. The realization of the union of Europe and the establishment of a pan-European federal United States is the ideal that Europe has been striving for generations. From the beginning of the European integration process contains this strong political will, but limited to the situation and other subjective and objective conditions, the designers of the "European building" took a pragmatic attitude, chose the "first economic, political", "political economy", "political economy", "political economy", "political economy", "political economy", "political economy", "political economy", "political economy", "political economy", "political economy", "political economy", "political economy". "political economy" development path, but in any case, they have never given up the ultimate goal of European political integration. So, from this point of view, the significance of the euro, as has been built in the European Customs Union, the European unified market, are to promote the unity of Europe towards the means. 1992 "Maastricht Treaty" its core content is to realize the European economic and monetary union, while officially launched the European political union. This marked the beginning of a natural transition from "political economization" to "economic politicization". It is after this, the European Union is very obvious to increase the pace and intensity of political cooperation in Europe: the appointment of the former NATO Secretary General Solana as "Mr. European Security", dedicated to the European Union's *** with foreign affairs and security; for the sake of peace and stability in Europe, ready to prepare for the establishment of a 60,000-strong European Rapid Reaction Force and 5,000-strong European police force and a unified European arrest warrant system; the accession negotiation process for the 12 candidate countries in Central and Eastern Europe will be completed by the end of this year, and the first new members will be admitted in 2004 at the latest. Particularly noteworthy is the EU's recent appointment of the staunch European unifier and highly respected former French President Giscard d'Estaing as President of the EU's Institutional Reform Commission (IRC). Destin as chairman of the EU's institutional reform committee, a clear indication of its determination and willingness to promote European unity.

The euro drives and promotes another important reality of European unity is that more than 300 million European citizens have never been so close to the European Union, care about the European Union, because *** the same currency means *** the same country, this unique cohesion and sense of identity is the future of the "temple of European unity" permanent cornerstone. France's "development" weekly (Expansion) at the end of 2001, the results of a sample of public opinion polls show that the vast majority of the French people on the euro with a positive attitude of welcome. 64% of the respondents believe that the euro will promote the EU member states to promote trade between the euro guarantees the transparency of the price of the consumer benefits of as much as 71%. Another 54% of respondents believe that the euro will increase the cohesion between the peoples of the EU.

2.2 The euro has helped to make the world more multi-polar

We have discussed the positive aspects of the euro from the EU's point of view. In fact, the impact of the euro has long exceeded the scope of the European Union's solid comprehensive economic strength as the backing to the "MaYo", "European Stability and Growth Pact" and "the legal status of the euro" and a series of legal documents for the establishment of the European Economic and Monetary Union as a guarantee of the euro is bound to give the world's economy and trade and the international monetary system to bring about far-reaching changes.

2.2.1 The euro will enhance Europe's position in the international economic and trade pattern in the new century

The European Union is currently the world's largest regional economic and trade bloc, with an area of 3,191,000 square kilometers and a population of 300 million and 4 million. Its gross domestic product (GDP) amounted to 8.8 trillion dollars in 2000, accounting for 32% of the world's total output, which is higher than that of the United States (27%), and its per capita output exceeded 20,000 dollars in 1999, which is a clear indication of the scale and strength of its economy.

Taking foreign trade as an example. According to the latest data provided by Eurostat, in 2000, the world's total exports amounted to 5.4 trillion euros, of which the European Union ranked first, 937.9 billion euros, accounting for 18%, higher than the United States of America's 16% (837.4 billion euros), Japan's 10% (518.3 billion euros) and Canada's 6% (298.5 billion euros).