The document discusses the implementation of a single currency, specifically the euro, among EU member states. It describes the three stages of the Economic and Monetary Union (EMU) that led to the euro: 1) capital movement liberalization, 2) irrevocably fixed exchange rates, and 3) monetary policy transfer to the European Central Bank. Six reasons for implementing the euro are provided: increased trade, employment mobility, price transparency, lower inflation, easier business expansion, and economic policy coordination. One disadvantage is the lack of a unified fiscal policy.

2. Introduction
 Single Currency
 Video
 Three stages of EMU
 Six Reasons for Implementation
 Disadvantage


3. 
We are going to discuss in detail six
reasons for the implementation of Single
Currency. We will also discuss one
disadvantage of this implementation.

4. 

The single currency
was created in 1999
when the exchange
rates of the
currencies of the
participating
countries were
locked into the euro
The euro banknotes
and coins were
introduced in 2002 in
12 countries

5. 
http://www.youtube.com/watch?v=HoL
NdBq9f5M

8. Abolition of all restrictions on the
movement of all capital
 Increased co-operation between central
banks
 Free use of the ECU (European Currency
Unit, forerunner of the euro)
 Improvement of economic
convergence


9. Establishment of the European Monetary
Institute (EMI)
 Ban on the granting of central bank credit
 Increased co-ordination of monetary
policies
 Process leading to the independence of
the national central banks, to be
completed at the latest by the date of
establishment of the European System of
Central Banks


10. Irrevocable fixing of conversion rates,
Introduction of the euro
 Conduct of the single monetary policy
by the European System of Central Banks
 Entry into effect of the intra-EU exchange
rate mechanism
 In January 2002 was the introduction of
the euro banknotes and coins


12. 


Being able to easily tell if a price
in one country is better than the
price in another is also a big
benefit both for consumers and
businesses
With price equalization across
borders, businesses have to be
more competitive
Pricing still varies, but consumers
can more easily spot a good
deal or a bad one

13. Increased trade across borders
 The price transparency, elimination of
exchange-rate fluctuations, and the
elimination of exchange-transaction
costs, all contribute to an increase in
trade across borders of all the Euroland
countries.

14. Increased cross-border employment
 Business can be conducted across
borders more easily
 People are more easily employable
across borders
 With single currency it is less frowned
upon for people to cross into the next
country to work, because their salary is
paid in the same currency they use in
their own country

15. Joining a fixed exchange rate may cause
inflationary expectations to be lower
 Often countries join a semi-fixed exchange
rate, where the currency can fluctuate
within a small target level, however the ECB
has control over it
 The euro has eliminated the damaging
effects of intra-European exchange-rate
tensions, which accompanied external
shocks in the past and were often costly in
terms of growth and employment.


16. The European Central Bank (ECB),
introduction of the euro also helps to lower
(and control) inflation among the EU
countries:
 Low interest rates
 Low inflation regime encouraging higher
and better quality investment
 Prudent government spending & low
government borrowing

17. Business can expand more easily into
neighbouring countries. Rather than
having to set up separate accounting
systems and banks
 Transactions in countries other than their
native one, the euro makes it simple to
operate from a single central
accounting office and use a single bank


18. The participation requirements of the
euro pushed many EU member states
who wanted to participate to get their
economies in shape and improve their
economic growth
 With the requirements of the Stability
and Growth Pact, they will also have to
maintain that control in the future, or
face fines


20. There is no clear budgetary and Fiscal
Policy in the Eurozone, despite a unified
monetary policy.
 As a member of the Eurozone, the Irish
government has to comply with strict EU
rules concerning government spending
and taxation


21. USA and UK
 As the USA and the UK are not in
Eurozone it makes trading uncompetitive
 The euro increases in value against the
dollar and pound sterling this makes Irish
exports to the UK and USA more
expensive


22. In conclusion the six implementations of
a single currency such as the euro helps
increase trade across boarders, expands
markets for business and helps lower the
interest rates within the EU countries.
Improves employment across boarders
as the currency has the same value in all
countries

23. 
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http://ec.europa.eu/economy_finance/pu
blications/publication7309_en.pdf
http://www.youtube.com/watch?v=HoLNd
Bq9f5M
http://www.oxforddictionaries.com/definitio
n/english/single-currency
http://www.ecb.europa.eu/ecb/history/em
u/html/index.en.html
https://www.ecb.europa.eu/ecb/educatio
nal/facts/euint/html/ei_004.en.html
http://europa.eu/legislation_summaries/ec
onomic_and_monetary_affairs/introducing_
euro_practical_aspects/l25007_en.htm