Other advantages are that a strong and stable Euro has helped to:
- Avoid exchange rate crises and market speculation that troubled the old currencies
- Make imports into the EU less expensive, including oil
- Increase trade and investment among countries within the EU zone
- Facilitate travel in Europe and lessened trip costs
- Share pricing information and therefore improve competition
- Attract foreign direct investment.
The Euro was not always a roaring success. For the first 2 years after its introduction in January 2002, the Euro's value went down significantly.
There have been growing pains. A survey published by the European Commission shows that almost one third of EU consumers believe that the Euro has caused prices to increase. In reality, inflation has increased only by slightly more than 2%.
Surveys also reveal that some are clinging to the old currencies, even now. More than 20% of participants still calculate their daily purchases in the old currency. For big purchases, the old currencies are used 40% of the time.
Economists point to the inability of the Euro to create the right conditions for a more balanced, supportive environment among all EU countries.
On January 1, 2007, new EU member Slovania became the 13th country to join the eurozone (nations that officially use the Euro). At least 6 other mini-states and territories use the Euro as legal tender without approval from the European Central Bank.
Ex-communist country Slovania joins other official EU members using the Euro, namely: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. In 2008 Cyprus and Malta are scheduled to adopt the Euro.
While the Euro has stimulated the
EU's success in international trade, it is not close to rivaling the U.S. greenback as a reserve currency to the world.
