Is the European Union beneficial to Europe?
The European Union is sometimes described as a super-state. It is often compared, with the U.S., to Canada or even Australia. Is the European Union beneficial to Europe? The European Union has one of the most stable economies in the world, yet there are many complaints that it is not keeping to its word and has not lived up to what was promised in the Maastricht Report. This can be attributed to the fact that, after the euphoria wore off, Europeans were disappointed that the Union’s promise of increased economic growth did not materialize.
It should be noted, though, that the European Union is not a perfect institution by any stretch of the imagination. No government can promise absolute prosperity. It can only promise prosperity on a condition that the laws, rules and principles of the EU are complied with. If those rules and principles are not observed, then the EU is guilty of failure, just like every other government-sponsored organization. This makes the EU no more than a political vehicle that some nations use to gain global popularity and increase their influence around the world.
So, is the EU itself successful? On the positive side, the EU has played an important role in world affairs. The Union’s decision-making process is generally followed by parleying between member countries so there are checks and balances in place. There is also a system of taxation which ensures that the European Union is able to deliver high levels of output while at the same time reaping the appropriate amount of taxation from its citizens. Finally, the Union has the backing of most leading governments worldwide which, collectively, ensure that it is able to protect its values and maintain the integrity of the Treaties.
However, is the EU itself successful? Eurozone countries have an interest in the EU not only because they would gain a favorable gain in trading partners, but they also have an interest in preserving the integrity of the Single Market. Each country benefits in the Single Market with low-importing nations gaining the most while other countries, which are better off in terms of economic development, benefit through increased exports. The Euro as a monetary unit has facilitated this process as well, but the impact has been lessened due to the presence of other currencies. In the end, the Single Market continues to be affected by inter-country competition and the Eurozone as a monetary union will continue to lose ground to developing nations.
Is the EU beneficial to the EU’s single currency holders? In general, the Euro remains to be the most valuable currency pair in the world today. While other currencies may become more valuable over time, the Euro is stable and thus, most traders prefer the Euro as a main currency pair. However, as forex trading continues to develop, investors may shift their attention towards other currencies. Thus, the stability of the Euro will become a question which will surface at some point.
Is the Euro beneficial to a country in transition? Although growth is possible in any country, a country that experiences significant political or economic turmoil will most likely experience slower economic growth. Trans-Saharan Africa is an example of this phenomenon. Most nations have experienced rapid economic growth in the past, but some have struggled with security issues, corruption, and other problems.
Is the Euro beneficial to an investor who wants to speculate on emerging European countries? Although a lot of technical analysis exists on how a currency can fluctuate in relation to other currencies, there is no known way to predict where it will go next. This is why investing in emerging European countries, like the United Kingdom, or the Netherlands, is highly beneficial to an investor. Both of these countries enjoy great economic strength and a stable government that do not change quickly.
Is the Euro harmful to a country’s economy? When looking at the long-term impact of the Euro, it is hard to see a negative aspect to this currency. Economists around the world believe that it will help all European countries economically as long as the Euro is allowed to float freely in international markets. If a country’s monetary policy is controlled by a country that does not enjoy sufficient political stability or the ability to make high interest rates, then it could do more harm than good to an economy. If investors trust the European Union’s ability to maintain its position as a world leader, then the Euro might be beneficial to a certain extent.