Emerging of Euro

The launch of the Euro has undoubtedly been one of the most important achievements of the hugely complicated political, legal and technical process. It also sent a clear political signal to the rest of the world that Europe was capable of taking sweeping decisions to shape a common future for a continent that has been plagued severally by wars and political upheavals. But today, Eurozone has bolstered its position and is treated with reverence across the globe. Though economic growth has been around meager 2% in the first decade, employment growth and the fiscal performance have been impressive real interest rate and inflation has also been control. In the first decade, the Euro area witnessed a massive growth in employment with the creation of 16 million jobs and the unemployment rate declining from 9% in 1999 Euro an estimated 7% in 2008.This is achieve able as per the strategy made by the member country.

Again in the first ten years the average inflation has been has been largely on apart with the EC’s benchmark price stability of close to 2%. In fact ,the average inflation decline from more than 9% in 1970s to around 2% in the first decade of the Euro-one of the lowest on the record in post war history. New fiscal deficit decline to 0.6%

of GDP .

At the time of launch of Euro, it was fraught with suspicion and it was forecast that it would not match US dollar’s hegomonry, but in the short span of time it emerged as second most important currency of the world.