THE IMPACT OF INTRODUCING EURO ON THE LEVEL OF INTEGRATION AND DEVELOPMENT OF THE EUROPEAN MONETARY AND FINANCIAL MARKETS

Abstract

Adopting the single currency is a fundamental moment in the process of completing the single market. The substitution of national currencies with the euro has allowed removing uncertainty due to fluctuations of exchange rates, the last obstacle to a full freedom of exchange. Maintaining price stability, the primary objective of the Eurosystem, is a prerequisite for sustainable development revenue. Ensuring the conditions in which monetary policy can contribute to meeting the European Union is to promote economic and social progress and the highest level of employment. An assessment of the effects of the single currency can not be reduced to an analysis of the latest, on the contrary, it should be considered from two perspectives, on the one hand directed towards analyzing the situation that made possible this radical change regime, on the other hand, an analysis that is designed to future developments, not necessarily immediately ones. Some important effects of the introduction of the new currency were observed even before 1999, others came forward in the following years, while others appear only in the long term.