Today is not only the first anniversary of Malta and Cyprus joining the eurozone but also the 10th anniversary of Europe's currency union. A decade ago the EU's monetary union was born which, on the whole, has proved to be a success story. The inflation rate within the eurozone has been kept low and the single currency has contributed to increased trade and the creation of 16 million new jobs in the euro area. The euro has led to increased tourism and economic integration among the single currency members and has led to greater price transparency. The European Central Bank has managed to work well and its consensual style of decision-making has proved to be successful.
On the first anniversary of Malta's membership of the eurozone, few observers will doubt that the country's decision to adopt the single currency was the right one. The euro sheltered us during last year's global financial crisis, it made us more attractive for investment, it has brought about financial stability, it placed us at the heart of Europe and integrated us well into the European Union. A well planned changeover to the euro meant that prices on the whole remained stable.
The euro today has become one of the main symbols of European integration and financial stability. It has become the world's second most important currency after the dollar. Slovakia joins the eurozone today bringing the number of countries in the club to 16. Sweden and Denmark, which have so far opted out of the single currency, are re-thinking their position, especially as a result of the financial crisis. The debate about joining the euro has even resurfaced in Britain, although few analysts expect a U-turn by the government on this question, as opinion polls consistently show a majority of people in favour of keeping the pound. Iceland, which saw its financial sector virtually wiped out in the aftermath of the global financial meltdown, is now actually thinking of joining the EU, and consequently, the euro.
Of course, although the euro has been a remarkable success, the way it was introduced in certain countries, such as Italy and Germany, initially led to steep price increases due to a lack of a properly planned changeover process as well as retailers and businesses taking advantage of the situation. It also has to be said that there remain major challenges within the eurozone if monetary union is to reach its full potential. Major structural economic reforms - including labour market reforms - remain to be carried out in certain large eurozone members such as Italy and Spain and economic growth in the euro area in this last decade has been below that of the United States. There is also a need for improved co-ordination of economic policies within the eurozone as well as a stronger global role for the bloc. An increased commitment by the eurozone members to reach the Lisbon targets would certainly help the reform process in the euro area.
European Monetary Union has not yet fully evolved, and although enjoying a successful first 10 years, has some way to go. The non-eurozone new member states will eventually all adopt the single currency and this has proved to be a good catalyst for economic and fiscal reforms. A well functioning EMU is a major asset for the EU as a whole and the larger the eurozone becomes, the more important it will be for a more integrated economic policy among the member countries as well as a commitment to continue along the path of economic reforms and fiscal discipline.
If a recent Financial Times survey among 6,165 adults in the eurozone is anything to go by, then the future of the euro seems bright. A large majority of the participants said they believed the euro could overtake the dollar in global importance in the next five years. The poll also showed that Europeans are in favour of expanding the eurozone.
On the first anniversary of Malta's membership of the eurozone, few observers will doubt that the country's decision to adopt the single currency was the right one. The euro sheltered us during last year's global financial crisis, it made us more attractive for investment, it has brought about financial stability, it placed us at the heart of Europe and integrated us well into the European Union. A well planned changeover to the euro meant that prices on the whole remained stable.
The euro today has become one of the main symbols of European integration and financial stability. It has become the world's second most important currency after the dollar. Slovakia joins the eurozone today bringing the number of countries in the club to 16. Sweden and Denmark, which have so far opted out of the single currency, are re-thinking their position, especially as a result of the financial crisis. The debate about joining the euro has even resurfaced in Britain, although few analysts expect a U-turn by the government on this question, as opinion polls consistently show a majority of people in favour of keeping the pound. Iceland, which saw its financial sector virtually wiped out in the aftermath of the global financial meltdown, is now actually thinking of joining the EU, and consequently, the euro.
Of course, although the euro has been a remarkable success, the way it was introduced in certain countries, such as Italy and Germany, initially led to steep price increases due to a lack of a properly planned changeover process as well as retailers and businesses taking advantage of the situation. It also has to be said that there remain major challenges within the eurozone if monetary union is to reach its full potential. Major structural economic reforms - including labour market reforms - remain to be carried out in certain large eurozone members such as Italy and Spain and economic growth in the euro area in this last decade has been below that of the United States. There is also a need for improved co-ordination of economic policies within the eurozone as well as a stronger global role for the bloc. An increased commitment by the eurozone members to reach the Lisbon targets would certainly help the reform process in the euro area.
European Monetary Union has not yet fully evolved, and although enjoying a successful first 10 years, has some way to go. The non-eurozone new member states will eventually all adopt the single currency and this has proved to be a good catalyst for economic and fiscal reforms. A well functioning EMU is a major asset for the EU as a whole and the larger the eurozone becomes, the more important it will be for a more integrated economic policy among the member countries as well as a commitment to continue along the path of economic reforms and fiscal discipline.
If a recent Financial Times survey among 6,165 adults in the eurozone is anything to go by, then the future of the euro seems bright. A large majority of the participants said they believed the euro could overtake the dollar in global importance in the next five years. The poll also showed that Europeans are in favour of expanding the eurozone.