Euro is the official European currency that operates in most countries of the European Union since 2002.
As planned in the 1980s with the creation of the European Union, derived from the former European Economic Community, the integration of countries in political, economic and social terms, especially socio-political integration and the creation of a single market European Union, supposed in the medium term the creation of a common economic space whose currency would be the same for all the countries that made up the EU.
In this way, once the political and economic union had been carried out, monetary policy had to be governed by the same entity, the European Central Bank (ECB), which would succeed the national monetary policies of each country until then, and which would be one step further. in the creation of a European federal system, prior to harmonization and fiscal union, which is the last step that is missing for total union.
Putting the euro into circulation
The euro was put into circulation on January 1, 2002, however it had been officially operated since January 1, 1999, when all the national currencies of most European countries were linked to the euro at a fixed price, based on of the value and strength of each coin. In this way, it is intended to form the same economic subject for the rest of the world, favor transactions between member countries and create a currency strong enough to face the global dominance of the dollar and the pound sterling.
However, although it was born with great expectations, the macroeconomic differences between the member states, the strengths of each economy and the strong global financial crisis have placed the euro in a limiting situation for some years, even proposing its dissolution and some countries reaching a to consider the possibility of abandoning the euro and recovering its old currency.
Despite the above, the single currency has been an advantage in the mobilization of capital, merchandise and trade, a situation that will be formalized once all the countries join the Monetary Union.