What is the significance of the emergence of the euro for the EU?

From the perspective of economic interests, the implementation of the unified currency euro will bring the following significance to EU countries.

(1) Strengthen its own economic strength and improve its competitiveness.

In the future, the gross domestic product and total foreign trade of the euro zone will be higher than those of the United States and Japan. After the introduction of the euro, the promotion of a unified currency and a unified market will undoubtedly bring about new economic growth and put the EU in a favorable position in the competition with economic powers such as the United States and Japan.

(2) Reduce internal contradictions and prevent and resolve financial risks.

Under the trend of globalization, regionalization and collectivization of economic competition, unified currency is one of the most powerful weapons. The European Union is the most integrated regional group in the world today, but it still lacks the ability to resist the impact of domestic market turmoil. After the euro is officially used as a single currency, the above problems will naturally be greatly alleviated.

(3) Simplify circulation procedures and reduce costs.

The use of the euro not only simplifies the procedures, saves time, speeds up the circulation of goods and funds, but also reduces the loss of exchange and commission of nearly 30 billion US dollars, so that EU enterprises can invisibly reduce costs and enhance their competitiveness. With the rising status of the euro and the development of the European capital market, the capital cost of member countries will also be reduced, which is conducive to investment and economic growth.

(4) Increase social consumption and stimulate enterprise investment.

Although a unified big market has been established within the EU, due to the existence of multiple currencies, the same resources, goods and services show different prices in different countries. If this phenomenon persists for a long time, it will distort the industrial structure and investment structure of various countries, which is not conducive to the rational development of large markets.

If a single currency is implemented and a unified monetary policy is formulated and implemented by the European Central Bank (ECB), the differences in prices, interest rates and investment interests among countries will gradually narrow or tend to be consistent, resulting in a general decline in prices and interest rates, an increase in social consumption of residents and an improvement in the investment environment of enterprises, which will ultimately be conducive to the sound development of the EU's overall economy.

Extended data:

In June 1 999+1October1,the EU countries implementing the euro implemented the single currency bill. In July 2002, the euro became the only legal tender in the euro zone.

The euro is managed by the European Central Bank (ECB) and the european system of central banks (ESCB), which is composed of the central banks of the euro zone countries.

In addition, the euro is the currency of six non-EU countries (regions), namely Monaco, San Marino, Vatican, Andorra, Montenegro and Kosovo. Among them, the first four pocket countries use the euro according to the agreement with the EU, and the last two countries (regions) use the euro unilaterally.

Baidu Encyclopedia-Europe