The Euro

For most people in the U.S. who hear the word euro, the euro is blank. Asking the same question in the UK and other European countries means linking Europe with a common currency. The euro can be defined as a common currency system where EC participates in affiliate transactions. Eleven countries, Germany, France, Spain, Portugal, Ireland, Austria, the Netherlands, Belgium, Luxembourg, Finland and Italy are European Economic Monetary Union, the currency will be set in 2002 and the euro will be adopted.

Regarding the euro, I feel uneasy about the European leaders being self-righteous and satisfied. It is based on speculation that the euro will be continually celebrated in euros even after Greece has left the euro. No one knows how the euro exit works and how it affects other member countries. However, this definitely means that the euro is not a "fixed and irrevocable" currency alliance. This means that there is an undocumented rule linking the euro member countries with the willingness to repay a public loan.

It is actually very strange to make the euro blamed on the current deadlock, as the euro founder clearly warns the member states not to fall into this situation. The story of the abolition of 'no salvation provision' in Europe is an interesting story. It is not an inevitable crisis, but because of unnecessary embarrassment, confusion, and arrogance we can believe that we do not need to make decisions in the current situation. A few years ago when I was writing this article, I reviewed many of the papers written by economists about the future of the euro in the 1990s. Financial constraints of stability and growth agreements are often respected and members of the euro, which are economically difficult, will not be relieved by other countries.