Is Euro the most important achievement of the European Union?

The European Central Bank is currently standing at a junction. Economic revival may be the end of cheap monetary policy. President Draghi is making great efforts to avoid false expectations in the capital market.

The Euro is a currency used by 19 different European Union (EU) countries and emerged as the most powerful economic value against the dollar in the world.

Although it doesn’t attract much attention in Latin American countries and Central Asian Turkish republics, it is gaining power day by day as the valid currency in approximately 400-million population of a total of 510 million in the EU countries.

The euro, no matter what anyone says; has become a strong currency these days. The challenges in the eurozone brought about economic crises. However, except for Italy in the Mediterranean and Greece, the situation was partially balanced.

RECESSION CONCERNS ON THE RISE IN THE EUROZONE

Based on the fact that some countries do not have a great chance, the Euro is a currency that has proved its strength at 1.13-1.15 against the dollar for a long time. In recent months, leading economies such as Germany, Italy and France in the Eurozone have shown a low acceleration below expectations, which is raising concerns about the Eurozone recession in the markets.

From this point of view, everyone is focusing on whether the cheap monetary period in Europe will come to an end. The European Central Bank is currently standing at a junction.

Economic revival may be the end of cheap monetary policy. President of the European Central Bank, Mario Draghi is making great efforts not to lead false expectations in the capital market.

IN NO WAY, THE GERMANS ACCEPTED THE EURO.

Germany is the country which is the most affected by the euro. The oneagainst-two change of the Mark, the strong currency of Germany, against the Euro created a major crisis in this powerful country. In no way, the Germans accepted the euro. Gradually getting accustomed to the Euro, this community got into a flap due to limited growth in its economy and the financial instability in Italy.

Despite the Eurosceptism on certain issues, the latest figures in the eurozone reveal a rather bright outlook. In January 2019, the Eurozone services and industrial sector’s purchasing index climbed to its highest level since 2006, rising to 58.6 points.

GERMANY ENABLED THE CENTER TO BE IN FRANKFURT

Germany, which has the strongest economy among the EU countries, did not take over the presidency and center of many mechanisms of the union, but it ensured that the center of the independent European Central Bank with legal entity was in Frankfurt.

The goal is to ensure price stability in the euro area of the EU member states using the euro. It fulfills this duty in the European Central Banks System, composed of central banks of the member states and the European Central Bank.

THE POWER OF THE EUROPEAN CENTRAL BANK

European Central Bank fulfills the tasks of the execution of the EU’s monetary policy and foreign exchange transactions, the retaining and management of the official foreign exchange feature of the member states, ensuring the proper processing of payment systems.

The European Central Bank is the sole authority to allow the issuance of paper currency within the Eurozone.

When you look at the Euro; the decisionmaking body, the executive board, the governing council and the general assembly are located in Frankfurt, Germany.

Governments of the countries, being members of the fully independent European Central Bank, cannot intervene and influence in any way. Nevertheless, the Bank works closely with the governments and central banks of the EU member states.

When you look at the dollar against the euro, which is considered to be a sound economic power today; we see that the balancing policies are directed in Washington, the US is issuing as much as they want, and this is unreturned money.

THE FUTURE OF EURO AND THE EU

The euro, no matter what anyone says; has become a strong currency these days. The negative effects of the Euro, which maintains a balance of 1.15 against the dollar, caused economic crises in the Eurozone countries. However, except for Italy in the Mediterranean and Greece, the situation was partially balanced.

There are three developments ahead that will affect the Euro:

1) How will expenditures and budget be created in the European Army led by Germany and France? Will the EU countries handle the economic burden for the European Army without US support?

2) 5 new members from the Balkans will join the EU, the members of which will decrease to 27 after Brexit. These are reactionary countries such as Bulgaria and Romania. How will these countries be integrated into the EU economy?

3) What impact will have the populist and right-wing parties to be successful and get strengthened in the upcoming European Parliament elections?

When we look at the events in these 3 chapters, we can say that the Euro will continue to be a strong currency and draw a good graph.