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Euro was first introduced on January 1, 1999, by the European Union. Within three years of its introduction by the EU, the member nations started using it as domestic currency. But it is also true for Euro that it is not universally adopted by all EU members as the only currency. The euro is officially adopted by 19 of the 28 European Union countries.

There are many prominent benefits of using the euro for the member states of the EU. The euro provided several economic advantages like travel was made easier by removing the need for exchanging money.  The more important benefit is that the currency risks were removed from European trade. It is obvious that now a European citizen can easily identify the best price for a product from any company that is operating in member nations without first running each price through a currency converter. This increases the price transparency and increases the competition between members. Also, labour and goods can flow more easily across borders to where they are needed increasing the efficiency of member states altogether.

Among all the benefits of the euro, the most prominent one is that it is managed by the European Central Bank. The ECB can make the changes according to the need of member state without any political pressure.

 

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