Abstract
The introduction of the euro has become the most important example of structural cooperation not only within the EU but also around the world. The success story of the euro and the enlargement process both demonstrate that the EU is ready for a new phase of political and economic integration. This next stage will strengthen Europe’s voice in the world and, as Jacques Delors, President of the EU Commission from 1985-1995, was quoted by Ambassador Günter Burghart, “the perception of an emerging European identity.” The EMU and the euro have forced countries to undertake structural reforms that have positively affected their labor markets. These reforms have enabled them to improve labor demands with a subsequent reduction of unemployment rates. Consequently, the main purpose of the EMU has been to create a solid currency that has allowed Europeans to avoid unstable macroeconomic situations and become part of an important economic and political bloc. All of these economic and monetary requirements have facilitated the achievement of price stability, an increase in economic growth, and the amelioration of the problems of the labor markets within the Eurozone thus far. In fact, in the last 10 years, long-term interest rates have fallen to less than 4%, boosting economic growth, sustaining inflation at around 2% on average, and creating almost 16 million jobs. Hence, the EMU has helped the Eurozone enjoy a solid common currency with the status of an international currency. The euro has therefore favoured the reinforcement of common institutions that have promoted the status of the Eurozone to that of an economic and political actor recognized worldwide. The global recession that has recently unfolded is putting the euro to the test. This study analyzes the past ten years of the euro and how, during this time, it has served as a stabilizing factor. The economic, monetary, fiscal, and social events that have been taking place daily since December 2008 are not part of this study. However, this study informs a number of qualitative and quantitative circumstances that explain the current developing situation.