The Role of the Euro in Europe
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The introduction of the euro is an important stage in the development of the European Union (EU) and the most significant monetary reform in the global history. The introduction of the euro is the actual implementation of the Common Market and the Economic and Monetary Union (EMU). It is based on the success of the common market and is a significant factor of economic stability necessary for further growth. It determined the increased competition and innovation. The adoption of the euro is beneficial for consumers and frees up resources in other areas, such as social services, and education. The euro also strengthens the EU both politically and economically.
However, the Common Market and the creation of the EMU are not one-time events – these are continuing common activities of all euro area members cooperating in the economic and political policy. New Member States committed to joining the EMU and introducing the euro in their treaties of accession. Successful accession to the euro area means that they need to scrupulously tune their economies with those of the present members. The economic tuning process is called convergence and is another step towards a closer EU integration.
