Euro - NEW single European currency

The main event in 1999 in the European Union will introduce a new currency - the euro. Technical preparations for the introduction of the euro will be specially created in 1998, the European Central Bank.
The Treaty on European Union signed on 7 February 1992 in Maastricht, who has started a new phase of development of European integration. From the moment the treaty enters into force (1 November 1993) The European Community became the European Union. This means a significant change in relations between EU member states, the essence of which is to move from the coordination of national governments to develop a common policy. It is anticipated that the emergence of European Union countries with a single internal and foreign policies, will raise the bloc of Western European countries on an equal footing with the United States.
As a result of implementing the new strategy of cooperation was established the Economic and Monetary Union (EMU). Its formation can be divided into three phases.

Phase I (July 1990 - December 1992). The main events of this period were: liberalization of capital movements within the European Union, the completion of the formation of a unified internal market, development of measures for the convergence of several makroekonomicheckih indicators of Union member countries.

At stage II (January 1994 - December 1998) was established by the European Monetary Institute (EMI), produced a legal framework and procedures for future European System of Central Banks (ESCB), led by the European Central Bank (ECB) member countries Union embarked on the preparation of a single currency - the euro, increased coordination of economic policies of member countries Union.

If we talk about the main events of Phase III, it can be identified as follows:
- The launch of the European Central Bank;
- Implementation by the parties to the EMU single monetary policy;
- Introduction of a single European currency, first in non-cash, then cash in circulation.
At the present time is much work to establish principles and mechanisms of interaction that underlie the future of monetary union. The transition to a unified monetary policy and the replacement of national currency to the single European currency had economic, social and political objectives. The logical continuation of the EMU will transform the EU into a single economic space, within the boundaries of which the participating countries will have equal conditions for all activities.
Without a stable common currency of European Union countries are unlikely to pursue a common economic policy, which is a prerequisite for the transition to a new level of political integration. Currently, the volatility of rates of Western European currencies has meant that European central banks are forced to spend part of their foreign exchange reserves or funds of mutual funds. In addition, when foreign exchange transactions, banks are forced to insure against currency losses and as a result increase their rates and interest rates. In the case of replacing the national currency to the euro in the need to disappear, that would lead to some reduction in cost of products in the real sector of the economy. Stable and low interest rates - not just a way to quell inflation, but also the essential condition for economic recovery of the country.
Over 90 years due to fluctuations between the national currencies of EU countries annually nedoschityvali 0.5% of GDP, and lost thousands of jobs. This situation can not help solve the problem of unemployment, which in the whole EU to 11%, while in Japan and the USA - 5,5% and 3,5% respectively.
Setting rates of national currencies to the euro would allow investors to currency risks are not taken into account when assessing the effectiveness of projects. This will lead to an increase in the number of profitable projects and thus reduce unemployment. In Germany, for example, it can be reduced from 9% to 8%, which is equivalent to the emergence of 400 thousand new jobs.
Given that the German mark - the most stable currency among the European currencies, it is logical to assume that in countries with less stable currencies the effect of the introduction of the euro will be even more significant. From the success of the European Union will be able to provide the necessary economic growth, will largely determine the integration of European states.
The anticipated economic recovery EU leaders will enhance the competitiveness of European products on the world market. Solving this problem will enable the countries of Western Europe to consolidate its position in the international market and the division of labor to build its relations with the U.S., Japan and South-East Asian countries to a qualitatively different manner. The advent of the euro would greatly save on the cost of national currencies, as well as the existence of different currencies annual cost of European countries in the 20-25 billion ECU (26-33 billion dollars), including costs related to accounting transactions with currencies of EU countries , insurance, foreign exchange risks, exchange, preparation of price lists in different currencies, etc.

1998