Green Currencies

Green Currencies in Europe

Description of Green currencies

The Concise Encyclopedia of the European Union describes green currencies in the following terms: [1] Green currencies, introduced into the Common Agricultural Policy in the late 1960s, represent an artificial common exchange rate for farm products, designed to equalise prices regardless of currency fluctuations. A country with a strong currency, such as Germany, which would otherwise have suffered from selling produce at the less valuable common exchange rate, used until 1992 to be recompensed by ‘monetary compensation amounts’; the opposite applied for a country with a weak currency. Within the eurozone the single currency will render obsolete this system, which was in any case modified in 1993. For British farmers, however, the sharp increase in the value of the pound in 1997-8 and the fall of the euro in 1999-2000 were particularly unfortunate, since any compensation from the EU was now conditional on matching payments from the British government, which were not forthcoming (see more in this European encyclopedia). (See also Common Agricultural Policy.)

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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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