It's coming! It's Coming! And now its here the Euro Prior to 1999 the EU countries (Austria, Belgium, Ireland, Finland, Germany, Italy, Greece, the Netherlands, Luxembourg, Portugal and Spain) all had their own currencies. That all changed on January 1, 1999 the euro became the official currency; however the transition was not an easy one.
The introduction of the euro, Europe's single currency has been in the planning and preparation stage for over ten years. One of the reasons for such the long wait was the skepticism of the mere idea of a single currency that the euro brought about globally. The idea came about in the early 1970's but was tabled due to a rise in oil prices. Again in the early 1980's the idea surfaced again and was agreed upon in 1992 by the Maastricht Treaty. After the agreement there were certain criteria that each country had to adopt, such as a controlled rate of inflation and the debt/GDP ratio. These things had to be accomplished in order be apart of the euro and have a smooth transition to the new currency.
From a global aspect there were many doubts about the change in currency. The way businesses conduct themselves, the way people travel and the way corporations and companies invest their money will all be effected. However the bigger question is how it will affect the US, especially in relation to trade.
Due to the interdependence of American businesses there already exist a positive relationship between America and Europe, which has helped in the transition. When it comes to trade, cost have been significantly reduced based on an end to currency conversion and the fees that exist from cross-boarder trade. This leads to the ability for large businesses to save money and increase their profits. There is also a benefit for small business based on the opportunity for international trade. In addition there will be a birth of price transparency which will lead to increased competition.