reedom to live, work, and study in any of the member states, and border controls were also eased. The European Union also set a goal of establishing a single European currency, the Euro, by 1997; this date was later changed to 1999. It is proposed that full circulation of the Euro is to be in effect by the year 2002. At that time the individual states notes will no longer be valid. The European Union’s attempts to establish a single European currency have had some controversy. An example is, some member countries, such as Great Britain, have worried that a shared European currency would threaten their national identity and their government’s authority. On the other hand, some of the other European Union member countries have been struggling to meet the economic requirements for participating in a common currency. To meet the requirements, which include a budget deficit of no more than three percent of their gross domestic product, by the deadline of late 1997. To meet the requirements some countries have imposed budget cuts and new taxes. Some of the measures taken by these countries have faced some resistance. The people who will mainly benefit from the common currency are the European citizens. The overall benefit that the euro will bring is a stable economic environment that will lead to low inflation and low interest rates. There are three main areas that the member states will gain savings from, they include, reduced losses created by currency exchanges, lower costs created by better competition in the euro zone, and a more favorable trading and investment environment for local businesses. The reduction of losses due to the elimination of currency exchanges within the euro zone will produce almost a whole percentage point of annual European Union GDP every year. The use of a common currency will allow easier price comparisons in the member states. By eliminating the currency exchange risk, economic and monetary union wi...
