The European Union and the common European currency, the Euro Essay Example for Free

The European Union and the common European currency, the Euro Essay The European Union (EU) is an economic and political partnership of 27 nations with a citizenship base of 495 million persons. The EU functions through three bodies. The European Parliament which represents the people, the Council of the EU which represents the governments of the member states, and the European Commission which represents the common interests of the people and the governments. This operating method is called supra nationalism and is characterized by shared power among individual governments. One way the the EU accomplishes its goals is through the use of a common currency, the Euro. According to the European Commission website, the Euro was introduced in 1999 and is currently used by 15 member nations including, by order of adoption, Belgium, Germany, Ireland, Spain, France, Italy, Luxembourg, the Netherlands, Austria, Portugal, Finland, Greece, Slovenia, Cyprus, and Malta. The purpose of the Euro is to create a common market. Of the nations that have not adopted the Euro, two have been exempt by treaty (Denmark and United Kingdom). The others are newer EU member nations who have not met the requirements to adopt the common currency. Participating nations must adapt their fiscal and economic policies to mirror those of the EU. The Euro reduces trade barriers among member nations. It also facilitates and enhances international trade opportunities for member nations by reducing currency exchange costs and protecting member nations from fluctuations in currency values in the international market. For example, the Euro helps member nations to protect their economies from extreme fluctuations in international oil prices. Several nations purchasing oil in the common currency gives them greater negotiating power based on the amount of Euros invested in the oil markets.The Euro fosters a sense of European identity similar to how the American identity is common across 50 states along with the symbol of the U. S. dollar. Works Cited European Commission. The Euro. Economic and Financial Affairs. 23 Oct. 2008. http://ec. europa. eu/economy_finance/t he_euro/index_en. htm? cs_mid=2946. Panorama of the European Union. Europa. eu. 23 Oct. 2008. http://europa. eu/abc/panorama/index_e n. htm. Supra nationalism. Merriam Webster Online Dictionary. 23 Oct. 2008. http://mw1. m-w. com/dictionary/suprana tionalism.