As the official currency used by the 27 member states of the European Union (EU), the euro is one of the main currencies traded by market participants and has an influence on global markets. Although it was launched since January 1, 1999, physically the euro was used on January 1, 2002. Since its introduction, only 19 member of European Union countries have directly used the euro as official currency and 8 other countries still use their local currency. Why don't...
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The Eurozone is a geographic and economic region that consists of all the European Union (EU) countries that have fully incorporated the euro as their national currency. As of 2019, the Eurozone consists of 19 countries in the EU: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. In 1992, the countries making up the European Community (EC) signed the Maastricht Treaty, thereby creating the EU. The creation...
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The state of Europe’s current economic recession taints all promise for its future, its excellence, and its international prestige, as manufacturing in the EU has hit its lowest point since the previous eurozone crisis in October 2012 and is expected to stay this way for the rest of 2019. Although the euro, a common currency shaping the eurozone as a monetary union in which 19 of the 28 countries in the EU recognize the euro as its sole legal tender,...
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The European Project has always been more or less ambiguous about its objective. The famous Schuman Declaration of 9 May 1950, considered to be the guiding principle behind the European project, is without doubt the clearest of the founding texts. It assigned the six signatory states the objective of achieving, through the European Coal and Steel Community, “the setting up of common foundations for economic development as a first step in the federation of Europe”. Federation was what it was...
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Foreign exchange rate is a primary determinant in business operations for multinational corporations. It affects cash flows for import and export transactions, and foreign investment decisions. The continuous change in values on international currencies indicates that a Chief Financial Officer has a daunting task in monitoring exchange rates movement. The concept of foreign exchange rate posits that different currencies have varying prices for various goods and services. Hence, this variation makes it possible to price one currency in terms of...
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