After enduring a deep economic crisis, Latvia are poised to be ‘rewarded’ with membership of the Euro in 2014. The Latvian miracle story It seems a strange that countries are so keen to join the Euro, when membership of the Euro has been a major factor in creating a real depression amongst many Euro countries. …
Readers Question: my question is If the UK. had joined the Euro back when it first started would the UK. have benefited like Germany or would we be in the same situation as Greece, Italy, and Spain? If the UK had joined the Euro from the start in 1999, the UK economy would definitely have …
No one doubts the commitment of many in the EU to seeking a way to prevent the Euro breaking up. The Euro project is deeply embedded in the European establishment. But, are they fighting a lost cause? Are the structural problems with the single currency so severe, they would be better off pursuing an orderly …
Readers Question: How sustainable do you think that the austerity measured imposed on European countries are in economic and political terms? This is a good question. Firstly, I feel there is a certain political appeal of austerity. See: Why is austerity politically popular? When austerity was introduced, there was a reluctant support for austerity – …
Looking at the economic factors which will influence the value of the Pound Sterling to the Euro in the future.
Background to the EU 1957 Treaty Of Rome established the EEC between 6 original members 1960 EFTA between UK, Aus, Den, Nor, Port, Swiss and Swe 1973 UK, Ireland and Denmark join EC 1999 Creating of Euro single currency. Community Institutions European Commission, this is the civil service of the EU Council of Ministers from …
The Euro started Jan 1999 EMU involves Replacement of National currencies by the EURO Same Monetary Policy – Since “One Money” implies uniform interest rates Exchange Rates within the Euro area will cease to exist By mid 2002 national currencies will cease to be legal tender Pre Launch Blues Expectations about Inflation helped reduce actual …
The Euro is a project of a monetary union and a single currency. The Euro involves a common currency and also a common monetary policy. Therefore, for membership to be successful, countries have to meet certain convergence criteria which include: 1. Inflation rate: No more than 1.5 percentage points higher than the average of the …