Questions tagged [euro]

Questions relating to the official currency of the euro area.

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33
votes
5answers
11k views

If the eurozone budget deficit limit is 3%, why is the European Commission telling Italy it must revise its 2.4% deficit budget?

The BBC reports that the European Commission has told Italy to revise its budget, saying that the draft presents particularly serious non-compliance with Eurozone rules. Yet the maximum permitted ...
24
votes
6answers
3k views

Why is using the euro instead of a local currency such a big deal and why is the wealth of the society an argument?

I think this is a question of both economics and politics, but I decided to ask it here. There will soon be elections in Poland. There was a debate about this question: should Poland keep the złoty (...
19
votes
1answer
2k views

Why do the Dutch Euro coins have a religious inscription on their edge?

The euro coins for 1 and 2 euros allow for an inscription on the edge of the coin. Each country is allowed to use an inscription of their choosing. (Euro coins allow for a national side as well, for ...
19
votes
3answers
2k views

Why was having a common currency in the EU seen as necessary?

When it was introduced, the € (Euro) was supposed to be the common currency for the entire EU, even if it turned out many countries (such as the UK) would stay in the EU without using the € currency, ...
18
votes
4answers
2k views

Why is the SNP putting so much emphasis on currency plans?

The SNP (Scottish National Party) have made a big thing during their conference this weekend about their plans for their currency should they gain independence from the UK. However, their current key ...
16
votes
4answers
511 views

Why is the German government now in favour of the possibility of Greece leaving the eurozone?

When German chancellor Merkel and others in her party recently said they would be “open” to Greece withdrawing from the euro and introducing a new currency, I remembered how strictly they refused it ...
14
votes
2answers
603 views

Why is the EU not happy with the euro usage in Montenegro

According to Wikipedia, the ECB and the European Commission are unhappy about the usage of the Euro as the national currency of Montenegro. The European Commission and the ECB have since voiced ...
12
votes
2answers
373 views

Is it possible to leave EU but remain in Eurozone, legally?

As to this comment: [I]s it possible to leave EU but remain in Eurozone, legally? Thanks @DVK for the question
11
votes
4answers
2k views

Under EU law, can Scotland remain or be re-admitted to the EU after Brexit while still a part of the UK?

Newspaper reports yesterday said that the Scottish First Minister and leader of the Scottish National Party, Nicola Sturgeon, had lobbied EU members to support Scotland's remain bid. After Scotland ...
11
votes
2answers
890 views

Is there any indication that the Euro rate is being politically manipulated?

In a recent (August 20, 2018) interview for Reuters about international politics, the president of the United States of America Donald J. Trump stated (emphasis mine): ON CHINA AND EUROPEAN UNION ...
11
votes
3answers
942 views

Why did the EU not unify the financial systems when the Euro was created?

It could be argued that many of the problems plaguing the EU in the recent years stem from a lack of integration among the various countries in the union. These missing "integration points" include, ...
10
votes
2answers
605 views

Why do Europeans pay for European products with US Dollar?

In Jean-Claude Juncker's most recent speech on the state of the European Union, there is this perplexing passage: It is absurd that Europe pays for 80% of its energy import bill – worth 300 ...
9
votes
2answers
515 views

Can an EU member officially give up pursuing Euro/Eurozone?

I often see/hear in the media about joining Eurozone in my country (Romania). AFAIK criteria for joining this zone are mostly technical, namely convergence criteria which mostly seem to be related to: ...
8
votes
1answer
1k views

Why wasn't Greece kicked out of the Euro once it was clear that they falsified their statistics to join in the first place?

The EU knew back in 2004 that Greece lied about their economic success in order to join the Euro. So why didn't the Eurocomission reevaluate their original bid and kick them out of the Euro? Did ...
8
votes
2answers
228 views

Eurozone countries surpassing their allowable deficit of 3% GDP

What happens when a eurozone country breaks EU fiscal rules that limit the allowable deficit to 3% of GDP?
7
votes
1answer
344 views

Why would Cyprus be “forced” to leave the Eurozone if it defaults?

I don't understand the statements being made that Cyprus (and before it, Greece) would be "forced" to leave the Eurozone if it defaults on its debt? Would it be "forced" by the other Eurozone ...
5
votes
1answer
209 views

Who limits the euro issued in each eurozone country?

In my understanding each member of eurozone prints their own euro. How was it decided how much euro will be printed by each country per year? Also, for weak eurozone countries, what is preventing ...
5
votes
3answers
552 views

Would it be an advantage for Greece to solve the financial crisis by leaving the euro?

Would it be an advantage for Greece to solve the financial crisis by leaving the euro? Wouldn't be another way of shaping policy more helpful, like kind of a marshall plan instead of austerity? Next ...
5
votes
1answer
570 views

Why does the EU allow members to use the ERM II loophole in order to avoid adopting the euro?

Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania and Sweden are currently the EU states which are obliged to adopt the Euro, but haven't done so yet. The reason why those states are able to ...
3
votes
4answers
2k views

Monetary policy: why does the dollar work for the US, but the Euro doesn't for the EU? [closed]

Why does the European Union have so many problems with its currency? The US also has a currency that covers lots of different states, some as strong as California or NY, others on the weak side, with ...
3
votes
1answer
174 views

Were the UK opt-outs of the Euro and Schengen enacted via the Ordinary Legislative Procedure?

Were the UK opt-outs of Schengen and the Euro legislatively enacted via the Ordinary Legislative Procedure or by treaty negotiation at the Council level?
3
votes
0answers
128 views

Why is it so important for a non-EUR EU member to adopt EUR currency? [duplicate]

I live in a non-EUR EU member (Romania) and I keep hearing for several years about the aim for EUR adoption. Technically, there are several criteria (EUR convergence criteria) that must be met in ...
3
votes
3answers
1k views

Pros and Cons on common currencies like Euro [closed]

I thought on Euro and if it is good or not for people generally. I am pretty much puzzled, and I have only personal opinion on this topic which is: It can be good for smaller countries, against ...
2
votes
2answers
298 views

Given that there isn't a fiscal union in the EU, why would the Greek crisis threaten other Eurozone members?

Here in Czech Republic politicians often claim that we cannot accept the Euro until 'the situation in Greece and other problematic Eurozone countries is resolved'. But given that joining the Euro ...
2
votes
1answer
152 views

Does the EU frequently review their members to see if they consistently meet the initial criteria?

Does the EU conduct frequent reviews on the economic and political condition of their members to stay? If a current member of the European Union drastically changes economically or politically, and no ...
1
vote
0answers
64 views

Why didn't ECB's quantitative easing quickly halt the 2009-2014 Euozone Sovereign Debt Crisis? [closed]

The US Federal Reserve’s balance sheet increased to a record $6.70 trillion, as at Apr 30 2020 according to its website. I know the Eurozone Sovereign Debt Crisis hit Greece, Ireland, Portugal, Spain, ...