Almost 340 million citizens of European nations use the euro as a common currency which includes almost all the nations. Euro is known as the merged currency of the European Union. All EU member nations are expected to follow euro at a certain time when they fulfil these conditions which include a stable exchange rate for 2 years, strict conditions related to interest rates, budget deficits, level of government debt and inflation rates. All EU countries use the Euro except the UK and Denmark. The merged currency of the EU has shown a coordinated history during the 2008 crisis in which national governments and European central bank worked together to restore financial stability, protecting savings and maintain a flow of affordable credit. Euro benefits in various ways like:
- Cross-border is so much easy and costs less or nothing at all.
- People in countries of the EU don’t need to change money when travelling within the areas of EU which saves their time and transaction costs as well.
- It is easy for consumers and businesses to compare the prices which encourage both consumer and investment sides of the economy.
- Euro area ensures stable prices and key interest rates. Additionally, the inflation rate doesn’t rise above 2%.