- Subject area(s): Finance essays
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- Published: November 15, 2017*
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The Euro is a currency based on the political and economic union that is the European Union. With 28 member states the European Union’s goal is to create a single European market that allows people, goods and services to flow freely within the confines of the Union. One of the Union’s attempts to accomplish the single European market was the creation of the Eurozone and the subsequent Euro currency. Millions of Europeans, on the European continent and abroad use the Euro as an exchange for goods and services like all other currencies; however the Euro is unlike any other currency in the sense that it was a currency created for the sole purpose of further integrating the European continent into a sovereign union and or state. However what if today, in the month of July, the year 2017 the entire world adopted the Euro as the single currency of the planet. First, the market would be in disarray stockholders in New York, London and Beijing would have to convert the currencies of stocks from Pounds, Dollars and Yuans to Euros however the market would stabilize since stockholders and traders alike would have more faith in the market with a single currency in place and not have to worry about the market collapsing due to a failed currency like Germany in the beginning of the 20th century or Zimbabwe in both the 20th and 21st centuries. Second, the single Euro currency would affect the globe in disastrous ways first of all would the European Central Bank control the currency and its circulation other it seems likely other world governments would like to have some control of the global currency just as much as the Europeans. Even then, would the Central Bank be able to print enough bank notes for the world without causing global inflation and then how would a European bank note be able to reach someone in Thailand or South Africa; loans, hospital and utility bills need to be paid groceries need to be bought. Millions would die due to the need of having to convert old currency into new currency would the Zimbabwean dollar note be worth a single Euro note? Obviously not that’s not how currency exchange works so millions in impoverished countries would die due to the fact that they would get less purchasing power than other developed countries like the U.S., Canada or Australia it would be a humanitarian crisis on a global scale. What if the Euro slowly integrated into countries with a new country adopting the Euro every two to three years and each country being able to somewhat control the currency with a representative sent to the Central Bank and all other aspects and details ceteris paribus? There would still be an issue, in 2017 nationalism is on the rise in many European, Asian and American countries the public want for some national distinction would increase so the world government’s and the Central Bank’s solution would be to print the faces of prominent leaders and figures from the countries where the currency is from. This would be a new path towards discrimination, a bakery in France may not accept an Algerian Euro or a Japanese gift shop may not accept a Chinese euro soon the world will fall into currency discrimination with online stores saying they only accept American and European Euros with luxuries like boats, televisions and computers being only avalaible to those with Asian, American and European Euro currencies. Then there would be calls for world leaders to exclude all other Euro currencies from the country and keep only their country specific Euro into circulation. It would be as if the Euro integration never happened with an American Euro being worth half a European Euro and although the Central Bank has a representative from each country the European representatives have the final say in currency manipulation and circulation. No country can leave the Euro or else the entire economy of that country would fall apart. Soon the age of European supremacy would be ushered in with all other Euro currencies being practically worthless compared to the European Euro it would become a 21st century age of colonialism where instead of superior weaponry the Europeans have superior currency.
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