Common Currency

Common Currency in Europe

Description of Common currency

The Concise Encyclopedia of the European Union describes common currency in the following terms: [1] A common currency differs from a single currency by operating alongside national currencies, not in substitution for them. In 1990 British prime minister John Major proposed abandoning EMU in favour of the creation of a strong European common currency, the ‘hard écu’. If enough people used it, the plan was that it might come to replace domestic currencies by a process of natural evolution, much as the dollar has replaced various local currencies throughout the world. The hard écu was rejected by the other EU member states as insufficiently integrationist. Ironically, the euro will have considerable opportunity to compete with the pound as long as the UK stays outside EMu (see more in this European encyclopedia). It will thus be not unlike a common currency within the UK, although it will serve as a single currency elsewhere in Europe.

Resources

Notas y References

  1. Based on the book “A Concise Encyclopedia of the European Union from Aachen to Zollverein”, by Rodney Leach (Profile Books; London)

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