The Euro - Europe's Single Common Currency

"If you think the speculators can't get at the countries within EMU, think again. It won't be long before our derivatives geniuses dream up a new synthetic currency. Where there is motive, there will always be opportunity."

Linda Davies

The quotation is from a speech on the Psychology of Risk, Speculation and Fraud, at a conference on the Future of European Monetary Union in Amsterdam.

For the first time since the fall of the Roman Empire most of Europe has a single, common currency. The US dollar faces the first challenge to its hegemony since it displaced the British pound sterling as the world's most important currency after the First World War. However, if the Euro is to assume a wider role it will have to flourish in its own continent and survive challenges to the stability of European economies first.

What are the prospects for European monetary union? This page contains links sources expressing a variety of viewpoints for and against.

Britain and European Monetary Union
An essay on how the history of the pound sterling differs from that of most continental currencies based on the work of Glyn Davies, author of A History of Money from Ancient Times to the Present Day. The pound sterling has an unbroken history of over 900 years. In contrast most European countries have replaced their currencies at least once, Germany having done so several times in living memory, and many continental countries have been members of previous currency unions. Thus it is inevitable that the British should be more cautious about abandoning their national currency.
Enthusiasm and Resistance to Union in Britain and Germany
Chapter 5 of the book, Money and Politics - European Monetary Unification and the International Gold Standard (1865-1873) by Luca Einaudi. The chapter discusses reactions to schemes to achieve monetary union by aligning the weights of the gold coins of Britain, France, other European countries, and the United States.
From the Franc to the 'Europe'
An article by Luca Einaudi on the attempted Transformation of the Latin Monetary Union into a European Monetary Union.
European Commission: Economic and Financial Affairs: The Euro.
Information about the currency from the website of the European Commission.
The Euro
The European Central Bank maintains this website which includes information about the banknotes and coins plus details of the history of the greatest monetary changeover of all time and the changeover in new member states of the European Union.
The European Central Bank: History, Role and Functions.
By Hanspeter K. Scheller (2004, 2nd revised edition: 2006). The complete text of the book is available online.
European Monetary Institute
The official web site of the Institute.
Psychology of Risk, Speculation and Fraud by Linda Davies
What are the dangers to European Monetary Union from legal speculation and from fraudsters? A novelist who is a former banker considers the risks.
Economic Policy and Growth in Europe
A four page summary in English of a French report written by Report by Philippe Aghion, Elie Cohen and Jean Pisani-Ferry for the Conseil d'Analyse Economique which claims that the Euro has failed to boost jobs and trade. January 2006. The full 308 page French version of the report is available to be downloaded. Politique économique et croissance en Europe, par AGHION Philippe, COHEN Elie, et PISANI-FERRY Jean FRANCE. Conseil d'analyse économique Paris;La Documentation française;2006;308 pages (Les Rapports du Conseil d'analyse économique, no.59)
The Future of the Eurozone
A paper by John Redwood MP, the former Conservative cabinet member and leading Eurosceptic.
Wolfson Economics Prize
The Wolfson Economics Prize challenged the world’s brightest economists to prepare a contingency plan for a break-up of the Eurozone. It was won by a team from Capital Economics led by Roger Bootle. The winning entry outlines the smoothest process by which a member state could exit the Eurozone.
Euro 'increasing unemployment and social hardship', says EC new!
Deepening economic divisions between North and South, rich and poor eurozone countries threaten to undermine the European Union itself, according to a new report on Employment and Social Developments in the EU. Telegraph, 21 January 2014.
Greece has been sacrificed on the altar of the failed euro experiment
An IMF report proves that British taxpayers' money was used to back a coup against the Greek people, says Nigel Farage, Telegraph, 7 June 2013.
Greek rescue was only to save euro, admits IMF
A leaked internal report says bail-out broke key rules and led to more debt. The Province, 5 June 2013.
Alternative für Deutschland: A German Eurosceptic movement?
A paper by Nicolaus Heinen of the Research Department of Deutsche Bank outlining the policies of Alternative für Deutschland and discussing its electoral prospects. 4 March 2013.
Bernd Lucke interview: 'Why Germany has had enough of the euro'
The founder of Germany's first eurosceptic party explains why it is time to break up the euro – and why he is confident of dethroning Angela Merkel. The Telegraph, 7 April 2013.
Dutch Freedom Party pushes euro exit as €2.4 trillion rescue bill looms
The Dutch Freedom Party has called for a return to the Guilder, becoming the first political movement in the eurozone with a large popular base to opt for withdrawal from the single currency. Daily Telegraph, 5 March 2012.
Will return of Spanish peseta spell doom for the euro?
In just the last year several Spanish villages and towns have been quietly re-introducing the peseta alongside the euro as unemployment and a stagnant economy grip the country. Telegraph, 15 February 2012.
Vive le franc: defiant village snubs the Euro
The Eurocrats should take heed. Collobrières, a village of 1,600 inhabitants in southern France has decided to bring back the franc as legal tender in an experiment that it hopes will be followed elsewhere. The Sunday Times, July 13, 2008.
In the French heartland, the franc lives on
This isolated village deep in Provence has decided to accept the French franc in everyday commerce, along with the euro. International Herald Tribune, June 29, 2008.
Italy minister seeks lira return
A second minister in Italy's government coalition has cast doubt on Italy keeping the euro, and called for the return of the lira. BBC, 6 June 2005.
The euro is killing our economy, say Dutch
By Ambrose Evans-Pritchard, Daily Telegraph, 1 June 2005.
Why the Euro System: is Unsustainable
An interview with Wilhelm Hankel, one of four German professors who had tried to stop the replacement of the German mark by the euro, by means of a legal procedure against it at the German Federal Constitutional Court. Executive Intelligence Review, August 12, 2005.
Euro Looks Shaky
The Euro might be running high against the US Dollar, but support for the single currency in France is headed for an all-time low. EURSOC Two 13 December, 2006 .
When the Euro falls apart
A paper by Hal S. Scott of the Harvard Law School about the possibility of countries abandoning the Euro and the consequences of doing so. Originally published in International Finance vol. 1 no. 2, 1998, p. 207-228.
The end of EMU: legal ramifications
An article by Julian D. A. Wiseman about how EMU could break up and its legal consequences.
The end of EMU: How the Germans could leave
Another article by Julian Wiseman.
Financial Times Special Reports - Euro
Up-to-date information about the Euro and developments affecting the currency.
Euro Know
A website set up by a group of economists who, in common with Sir Julian and Jonathan Hodge, and sponsored by the Julian Hodge Bank, feel that the economic and political arguments about the Euro need to be properly explained.
Euro conversion FAQ
Answers to frequently asked questions about changing from national currencies to the Euro.
Euro-Banknotes FAQ
Answers from the Bundesbank to questions about the Euro banknotes.
Renewed speculation about RFID in Euro Notes
The September 2005 issue of the German industry magazine Die Bank contains speculation about the introduction of microchips with radio frequency identification devices in banknotes as a possible measure against counterfeiting.
Single Global Currency Association
Does the Euro go nearly far enough? The Single Global Currency Association seeks to promote the implementation of a single global currency, with an international central bank, by the year 2025. The website also has many links to other sites on money.
Euro Information
This website provides information for business and travellers about dealing with the euro as a foreign currency, and on-line versions of key documents relating to UK euro preparations, including the third outline National Changeover Plan.
The 5 Economic Tests
An outline of the five economic tests that Gordon Brown and the Treasury said would have to be satisfied before Britain could adopt the Euro.
UK Membership of the single currency, An assessment of the five economic tests
An outline of the main conclusions regarding the Chancellor of the Exchequer's Five Economic Tests.
The 5 Tests Framework
One of a set of detailed studies accompanying HM Treasury's assessment of the five economic tests of whether or not Britain should join the Euro.
BBC In Depth: UK and the Euro
A large collection of articles and news about various aspects of the Euro.
Giancarlo Corsetti's Euro Homepage
Lots of detailed economic information. This site includes a chronology of developments.
Where the Euro is Used
A list of all the states and territories using the Euro and those in Africa, Europe and the Pacific whose currencies are linked to the Euro.
Link Technology Euro Solutions
An integrated suite of Euro tools designed specifically for the desktop.
Systems Modelling Ltd. Euro Index
A large collection of links to useful resources, including Managing the Euro in Information Systems: Strategies for Successful Changeover information from a book by Patrick O'Beirne.
There are six economic tests, not five
The UK must aim to join the euro by 2007 - we can't afford not to, claims Peter Mandelson, Guardian 22 May 2003.
City thriving outwith euro, says Greenspan
In a visit to London to receive a knighthood, the chairman of the US Federal Reserve said that the City of London is thriving outside the eurozone and has not suffered from Britain's decision not to join the single currency in the first wave. The Scotsman, 26 September 2002.
The role of the euro in the world - past developments and future perspectives
A speech by Dr. Jürgen Stark, Deputy Governor of the Deutsche Bundesbank, in September 2000.
The role of the euro in the world - past developments and future perspectives
A paper with the same title as Jürgen Stark's, by Richard Portes, London Business School and CEPR, November 2000.
History of the Euro
An article by J. Orlin Grabbe.
Q&A: The UK's euro timetable
The UK government seems to be gearing up for a referendum on the UK adopting the euro - but what is the likely timetable? BBC, 12 February, 2003.
The Eurodollar
Bryan Taylor argues that within the next ten year the Euro should be merged with the Dollar to create a Eurodollar, which would act as a single currency for both the United States and Europe, and eventually for the rest of the world.
Stability pact squabbles shake the euro
There is a long running dispute over the proper enforcement of the Stability and Growth pact, the very rules which underpin the single currency. BBC, 6 January 2004.
Gold and the Euro
An editorial from the Gold Eagle investment newsletter on the relationship between gold and the Euro.
FATF 19989-1999 Report on Money Laundering Typologies
This report contains information about he possible impact of the Euro on money laundering.
U.S. Hedge Fund Supposedly Knew About Intervention
The newspaper Frankfurter Allgemeine Zeitung reported on 27 September 2000, rumours that a leak of information from a central bank outside the Euro zone led to Citibank, one of the leading currency traders worldwide, buying up euros in large volumes for a U.S. hedge fund company. These allegations could well have come straight from the pages of the novel, Nest of Vipers.
Bank of England - Speeches on European Matters
Details of speeches made by Bank personnel which have been made available to the public.
Deja V-uro by Sam Vaknin
The Euro feels like a novelty - but it is not. It was preceded by quite a few Monetary Unions in Europe and outside it.
The Congress for Democracy
The Congress for Democracy provides a forum for discussion and co-operation between individuals and groups from across the political spectrum who want to retain an independent pound.
The Case for the Euro
The text of a speech by Peter Chapman delivered to Liberal Democrat local party on Wed 15th October 2003.
A discussion group for people who are interested in exchanging data about the practical preparations companies can and should be making for possible UK entry into the euro.
Euros accepted at four castles
Welsh assembly culture minister Alun Pugh has announced that Caernarfon, Conwy, Tintern and Caerphilly castles will all accept the European currency. BBC, 9 July 2003.
Article on the Swedish referendum
An article on the verdict published in the Public Service Review: Nordic States, 24 of November 2003.
The Danish Referendum on Economic and Monetary union
A (British) House of Commons Research Paper about the referendum on 28th September 2000 in which the Danes voted against adopting the Euro.
Statement of Dutch Economists concerning the European Monetary Union
A warning signed by 70 Dutch economists in February 1997 that with its plans for EMU, the European Union is taking the wrong road.
Why Italy is turning back to the lira
An article about the unpopularity of the Euro in Italy and how a shop in Milan has started to accept lira again. BBC, 14 January, 2003.
Poorer, yes. But by how much?
Although the Italian Institute for National Statistics, Istat, says the inflation rate is 2.5% an independent research group, Eurispes, says it is more like 29%. Many people blame the Euro. The Economist, 9 January 2003.
Small Change, Big Annoyance in Europe
Two nations, Finland and Belgium, have already scrapped 1- and 2-cent coins introduced with the euro, and others may follow suit. Business Week, September 23, 2004.
Euro-linked price rises provoke consumer backlash
Europe's consumers are being urged to boycott retailers who have engaged in profiteering since the introduction of the new single currency, the euro. Sydney Morning Herald, June 22, 2002.
Germans lose appetite for euro
The franc, mark and lire have vanished, but in their place is springing up a dense undergrowth of do-it-yourself currencies as recession-mired regions seek to pump purchasing power back into their communities. Mail on Sunday, 4 January 2005.
Germany clears the way for EMU
Germany's highest court has rejected two constitutional court cases against the euro, brought by German academics. BBC, April 2, 1998.
Cash Kropp
The decision by store owners in a small German town of Kropp in Schleswig Holstein to continue to accept deutschmarks has had a positive impact on the local economy. Guardian, December 27, 2002.
Bundesbank upset by mark revival
The German mark - consigned to history at the beginning of 2002 - is making a startling comeback thanks to the unpopularity of the euro. Daily Telegraph, 6 June 2002.
Euro led to price rises, says German minister
Germany's finance minister Hans Eichel has admitted that the introduction of euro notes and coins led to significant price rises across the country. The Guardian, May 13, 2002.
German Voice Doubts about the Euro
A group of short articles about German criticisms of the Euro.

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