The Eu Without The Euro

EU without

the Euro

Would the Euro zone countries be better off without the Euro?

Table of contents

Research question

• Introduction Page 3

• Explanation Page 4

Main Part

• History Page 5

• Advantages of the euro Page 5

• Disadvantages of the euro Page 6

• Public Opinion Page 6

• Newspaper articles Page 7

Conclusion

• Yes/No Page 8

References/Sources Page 9

Introduction

Every Sunday I visit my grandfather. He lives in the same village as my parents so it is easy for me when I return home during the weekend to pay him a visit. My grandfather turns 96 in July, he survived two world wars and one wife.

A couple of years ago the doctor told him that it was probably for the best if he gave up smoking and driving adding the comment that continuing both would be harmful to himself and others. My grandfather reluctantly agreed. This is the reason why he always asks me to bring him some cigarettes when I visit him. Although I don’t mind paying for the cigarettes, my grandfather insists that he pays for them himself.

As such this is hardly worth noting, but ever since 2002 buying my grandfather cigarettes means that I have to listen to a barrage of complaints. Not about myself, but about the price. Remarks frequently heard in my grandfather’s house are:

“Ever since the guilder changed into the euro, the prices have gone up.”

or

“The only thing that changed is the euro sign, the prices have stayed exactly the same.”

and even

“I wish that our government would have kept the guilder.”

At first I dismissed this as �old man’s complaints’, but lately I myself have been wondering about the introduction of the euro. Have the prices doubled since its introduction in 2002 or would the same have happened with the guilder? Would it have been smarter to keep the guilder? Have we lost some of our cultural heritage, because of the euro? I decided to start writing a report trying to answer these questions and more. The research question I will try to answers is:

Would the countries of the European Union be better off without the Euro?

Hopefully next time I bring my grandfather a pack of cigarettes I can give him a conclusive answer whether we are better off with or without the euro and try to make him stop complaining about the euro. Thank God he hasn’t taken a look at the petrol prices in the last 10 years.

Explanation

Structure

The topic of my presentation is �The EU without the euro’. In this report I will try to answer the following research question: Would the countries of the Euro zone be better off without the Euro? I have structured my report in the following way:

In this introduction I will outline the research question and my way of working. I will explain how my report is structured and I will give information on my personal timetable.

In the main part I will show information and findings that are relevant to the research question, I will give some background information about the topic and some pro’s and con’s. Finally in the conclusion I will try to answer the research question using my own opinion based on the findings I have done in the last couple of weeks.

Scope

In the last 7 weeks I have worked on this report. The first 2 weeks I worked on the report subject (EU without the euro) and I have tried to present a proper research question (Would the Euro zone countries be better off without the Euro?) The next 4 weeks I have worked on gathering information from different sources and the last week I focused on writing the report itself as well as reaching a conclusion.

Methodology

To gather the data to properly answer the research question I have used different sources. I have used the textbook �European Business’ by Johnson & Turner as well as several internet sites, such as www.europa.eu.int, www.cec.org.uk, www.economist.com, www.wsje.com and others. I have also studied the newspapers the last 7 weeks trying to find appropriate articles.

Assumptions and limitations

As a private researcher I do not have the access to sufficient funds and resources to conduct interviews or gather data personally. I have limited myself to the use of textbooks and internet sites as well as newspapers. Also as a researcher I will summarize different opinions and findings and form an opinion of my own. I must state clearly that they do remain opinions, whether my own or from journalists, and that they are entirely subjective and will be treated as such.

Main part

Short historic overview

The euro is the official currency of the countries residing in the euro zone. In 1999 the euro started out as an accounting currency and as of 2002 it is a physical currency being used by approximately 320 million people. It replaced the European Currency Unit (ECU) which originated in 1979. The ECU was a currency unit that combined the currencies of all the euro zone countries together and was used by the European Community.

Today the euro zone consists of 13 countries (Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,