Question

Describe the economic and political benefits and cost of adopting and / or joining a single currency such as the euro.

Answer 1

Benefits of Euro-

More alternative and stable costs for customers and voters
Greater security and a lot of opportunities for businesses and markets
Improved economic stability and growth
More integrated monetary markets
A stronger presence for the EU within the worldeconomy
A tangible sign of a EU identity

• The single currency brings new strengths and opportunities arising from the combination and scale of the euro-area economy, creating the one market additional economical.
  
  Before the monetary unit, the necessity to exchange currencies meant additional prices, risks and a scarcityof transparency in cross-border transactions. With the one currency, doing business within the monetary unitspace is more cost effective and lesser risky.