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Unformatted text preview: Brick Faucette International Economics 2.19.2008 History of the Euro A pressing need that was being experienced in the European Union and surrounding communities was the necessity of a common association that would help better the current state of all parties. Thus, as a result of growing concern, in 1951 the Treaty of Paris implemented what is looked at as the groundwork that led to the guarantee that the abandonment of future war, a common currency and a basis from which all nations could agree on was implemented. As a result the European Coal and Steal Community was implemented to integrate the inaugural members among each other to reach a common goal. It was a result of the ECSC that the idea of exploring the feasibility of a customs union was born, and with that revelation a report was put together which was eventually unveiled at the Treaty of Rome in 1957. The aforementioned report dealt with the advantages that a customs union, free trade with a common external tariff, was necessary and in turn led to the creation of the European Economic Community. The introduction of the Euro came about after years of planning to coordinate the best possible situation for transition. The original idea of establishing a single economic and monetary union hinged on the Maastricht Treaty of 1992, which after negotiations, led to the creation of the three pillars of the European Union as well as the Euro. A transition period that stretched over the better part of a decade included a 4 step process. In order to create the Euro a group of 11 countries were decided on that were required to meet the following four conditions: to have kept its currency within the normal margins around its fixed value in terms of...
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This note was uploaded on 04/10/2008 for the course INT. ECON 302 taught by Professor Hetherington during the Spring '08 term at Oglethorpe.
- Spring '08