Euro

 By Teflah Alajmi

As a result of establishing the European payments Union as a component of the Organization for European Economic cooperation, which is the basis for currency spread in Europe, is appearing. The euro is the currency of 13 European Union countries: Belgium, Germany, Greek, Span, France, Luxembourg, Ireland, Italy, the Netherlands, Austria, Portugal, Slovenian and Finland. Euro currency is not only exclusive for European countries but also there are a lot of countries who adopted the euro as their national currency for example, Monaco, Vatican city and other countries. The euro is managed and administrated by the European Central Bank and the European System of Central Banks. The euro was introduced as an accounting currency in 1999 and incipient physical coins and banknotes in 2002. The euro is divided into 100 cents. The euro currency predicts to achieve a higher level in our world currencies from dealing with local currencies. I think the euro will be ubiquitous all over the world. There are a lot of European members who do not until now enter this new generation of Unitary started with one currency and maybe ending with one passport for any person who belongs to each of European countries for example UK. The United Kingdom which is consider the important member of the EU among other member for its political and economical powers does not deal with the euro as an official currency in the Kingdom for many reasons.

UK position from the euro has many dimension. The United Kingdom has five criteria in terms to adopt the new currency. According to the Euro-UK FQ website the main reasons are:

1. Sustainable convergence between Britain and the economies of a single currency; including:
* monetary transmission mechanisms
* the housing market
* national business cycles
* sustainable real exchange rate
2. Whether there is sufficient flexibility to cope with economic change; including:
* labour markets
* adjustment mechanisms
* fiscal policy as an economic stabilizer
3. The effect on investment; including:
* the cost of capital
* the impact of joining on different economic sectors
4. The impact on our financial services industry; including:
* why financial services companies are located in cities like London and Edinburgh
5. Whether it is good for employment; including:
* the euro’s impact on external trade
* lessons from American monetary union
* the stability and growth pact
* price differentials in the euro zone

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