Euro- indispensable for the European Union

General considerations

The making of the unique European coin - Euro- represents the principal desiderate of ruling the European Union Because of the importance of the Euro a complete analyse is necessary, that should reflect the advantages of the participating states at the "euro zone", and the risk and the eventual disadvantages that the European coin is making, without omitting the implications of euro in the world-wide plan.

1 Short euro history:

The name of the coin was established in December 1995 in Madrid, and it's launch has been made at the 1st of January 1999. The limit date of the effective introduction of euro was fixed the date of the 1st of july 2002. There were signed two periods: 1st period 1 january 1999 - 1 june 2002, when euro was introduced on the market and it coexisted with the other national coins of the participating countries. Since the 1st of july 2002, euro became the unique coin legal on the territory of Europe.

The euro way seamed to be pretty hard and with lots of bumpy roads. In 1996, at Dublin, the control of the evolution of euro was being looked after so that the Stability of the Pact will be respected. The clarification of the legal statute and the introduction of euro was following especially the continuity of the contracts and the stopping of the speculations in the period of transition regarding the transforming of the European national coins in or from euro. The future of E.U. and of euro remained uncertain. The position comes from the reduced possibilities of some of the states of conforming to the demands.

The first step for realizing of a form of economical inter-state integration it's the adopt of a set of economical politics very rigorous. BCE will have to stand up to the technical problems of the transaction to the unique coin, especially to the ones that regard the making of the term's for the interest fitted to the adoptation of euro, the maintaining under control of the conflicts between the ministry of finance of the members states.

You can tell that the idea of the making of an monetary European union has at it's base two principal motivations. One of it is the pragmatic one, tied of the policy of the cadre necessary for the functioning in optimal conditions of the unique internal market, perfectly harmonized , facilitating the free circulation of the capitals and the harmonization of the markets and the financing systems. The second , the economical determination, has as a pivot the monetary concept that bets on the role of the complete mobility of the production factors as a base element in to the absorbing of the negative elements of the non-simetric elements. On these fundaments were concretized the plead for euro and the limits of this coin new appeared, or better said coin that has brought new things on the European markets.

Euro is being sustained of the ideas that have determined since the beginning the start of the process of the transition of an unique European coin. The process was possible because it has began from solid bases witch through is the existence of a legal coherent structure so that euro will substitute the national coins the insurance of simple and accessibility of the unique coin so that it will make a credibility sentiment through the citizens and at the business level. At this it adds the efficient realizing of the conversion under the cost aspect and of the process insurance and the insurance of a flexible mechanism of voluntary adjustment for the private sector.

The importance of the monetary politic, the planning for the UME countries can be very hard underestimated. Not even one coin lived like a international coin in the condition of the high rate of inflation. Past the time the countries with an important coin tried to evade the influence for the holding of their supplies of gold and silver.

If the monetary authorities will make public there targets and strategies, the market and the critical public will be able to talk about there convictment regarding the inflation. What ever we cant say that de BCE politics will be more careless than the one of the National Founds.

Although that the European system of the Central Banc can and has to cooperate with the Monetary Union for the realizing of it's objectives, this thing can be forbidden, if this assistance will enter in conflict with the stability of the prices.

The monetary politics will not be used for the reducing of the thorough the "surprise inflation" or through the elimination of the public own. It remains a considerable discretion from BCE. It will have to determine how can it stabilize the prices. The problem is complicated by the back remains of the monetary politics effects. The case of the exchange course is very powerful for the small open economy situated next to a big and stable neighbor , like Austria and Germany , but not so strong for UE - like a full.

The only target for EU could have been the American dollar, a coin with a transaction surface a little bit larger then the one of euro.

The best approach of a big economy like EU it's to target the inflation rate, realizing actions of monetary politics for it's movement. The factors that should be watched are : the price of some needs; the exchange course in different financial aggregates; the growing rate and the price of important titles. "The credibility is capital actionar at every bank"-Otto Pohl- it does not exist any reason so that the BCE managers wont be capable of establishing from the beginning the credit.

The control absence - another factor of the coin stability. It would be a bad news for a future international coin if the payments would be under the control of the changes. The stability of the coin depends of the monetary politics and it of the politic stability. The international coins were always bind by the state in the period of it's ascension. When a state descends, so does the monetary stability. It is not a favorable situation for the coin of a state if it is not strong enough for