Page 404 - SSB Interview: The Complete Guide, Second Edition

in Europe is based on common cultural values of various nationalities in the
EU.

The objectives of the Maastricht Treaty are:

Economic and monetary union, ultimately including a single currency

A common foreign and security policy, which might in time lead to a
common defence

Close cooperation on justice and home affairs

Economic Integration:

Single market (freedom of movement of goods, services, labour
and capital)

Economic and monetary union, including single currency and

common central bank

Common policies on agriculture, transport, research and technology

Single citizenship

Launch of Euro

On 1 January 1999, the Euro, the new single currency to be used by eleven
EU members, was launched. Countries launching the Euro formed the

European Monetary Union (EMU) as a step toward greater political unity.

Advantages of single currency

Cuts Transaction Costs: The need for a single currency is felt because

transaction costs — the price of changing from one currency to another
— are a burden to European business.

Can stand up to International Currency Speculators: Experts feel

that Europe needs the strength to stand up to international currency

speculators and stop them from blowing economic policies off course.

Can Reduce Fluctuations in Currency Rates: A single currency
would also reduce fluctuations in exchange rates between EU members.

Thus, to run efficiently, a single market needs a single currency.