Happy 10th Birthday, Euro!
May 20, 2008 by Jean Mercedes
Filed under Business
Yes, it was 10 years ago that the European Union introduced the Euro as a financial currency; paper money and coins followed in 2002.
Many Europeans are still critical of the new currency (some shops even still display prices both on Euro and in the old local currency) but financial experts all agree – the Euro has contributed to increased financial stability for the European Union, more jobs, more competition and decreased inflation.
The current sub-prime crisis is a good example. Without the Euro, a financial crisis of this scale would have greatly devalued weak currencies like the Italian Lire and the Spanish Peseta, while boosting the German Mark. While the Euro has increased in value to the US dollar, the effect has been neutralized by the common European currency.
According to the Sueddeutsche Zeitung, annual job growth in the Euro countries has been 1 million new jobs; five times higher than during pre-Euro times. And the consumer price index has risen just 1.5 per cent since the Euro was introduced, significantly lower than the previous annual rise of 2.6 per cent.
Here’s to the Euro!
Image from usmint.gov
I have to say, I was a sceptic at first, but I love the Euro. No more pockets full of useless coins when you cross a border, or bags of them at home. Ok, well I still have the bags, but at least I’m not adding to them.