Why Member of the European Union are Still Interested in Joining the Eurozone

The European Union (EU) is an economic union among 28 member countries in Europe, experiencing serious complications for the first time since its inception, and is known as the 'European crisis'. Some euro area member countries have serious debt problems that are confusing other EU countries. Nonetheless, Latvia, which is the problem facing the current euro, is still planning to adopt a single currency in 2014.

Many of the difficulties of the Greek financial crisis are due to accession in the euro area. The euro area was founded as a monetary union between 11 countries (then EU member states) in 1999 and there was no corresponding financial and political alliance. The first candidate list was drafted and Greece was not eligible to join the euro area in 1999. Because it did not meet the economic requirements of the Member States of the Maastricht Treaty of 1992. According to the provisions of the EU stability and growth agreement, which was enacted in 1996, the economies of new member countries must meet with the member countries of the euro area to a certain extent. Convergence has been demonstrated by adhering to five criteria, including low inflation, a fiscal deficit of less than 3% of GDP, and government debt levels below 60% of GDP.

Since 2004, the unity between the EU and the EU is swirling. During the global financial crisis of 2008, the euro zone fell into recession, after that Greece, Ireland and Portugal faced default risks. The impact of the crisis continued until 2014, as many countries in the euro area began to regain their position. In 2015, immigrants from the Middle East and Africa tried to enter Europe as refugees, but the most serious disaster occurred, but some people just dressed as refugees. Under the guidance of Prime Minister Angela Merkel and the EU leaders, the EU opened its borders and illegal immigrants brought catastrophic waves to Europe.

Issues such as whether the euro area can be classified as the best currency zone before the EU establishes its currency zone in a common currency and whether the judgment of the EU member states in a common currency. After the recent currency crisis, the main cost associated with the common currency is that Member States are more likely to be asymmetrically shocked. If one country is shocked and the unemployment rate rises without affecting other member countries, the exchange rate is fixed in the currency alliance, so you can not lower the exchange rate to gain competitiveness . Furthermore, since monetary policy is no longer independent, the state can not relax monetary policy to boost the economy. Therefore, the ability to deal with economic shock is very limited for individual countries.