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  3. The Circulation of Euro On January 1,2002, the Euro (欧元)became the single currency of 12 member states of the European Union.

The Circulation of Euro On January 1,2002, the Euro (欧元)became the single currency of 12 member states of the European Union.

admin2009-09-12  64
问题                                                            The Circulation of Euro
   On January 1,2002, the Euro (欧元)became the single currency of 12 member states of the European Union. This will make it the second largest currency in the world (the U. S. dollar being the largest). It will also be the largest currency event in the history of the world. Twelve national currencies will disappear and be replaced by the Euro.
   The original seed was planted in 1946 when Winston Churchill suggested the creation of the "United States of Europe". His goals were primarily political, in that he hoped a unified government would bring about peace for a continent that had been torn apart by two world wars.
   Then, in 1952, six west-European countries took Churchill’s suggestion and created the European Coal and Steel Community (ECSC). These resources were quite strategic to the power of each country, so a requirement of the ECSC was that each country allows their resources to be controlled by an independent authority. Their goal, just as Churchill had intended, was to help prevent military conflict between France and Germany.
   In 1957, the Treaty of Rome was signed, declaring the goal of creating a common European market. It was signed by France, Germany, Italy, Belgium, the Netherlands, and Luxembourg.
   After many false starts, the process of creating the Euro got its real start in 1989, when the Delors Report was published by Jacques Delors, President of the European Commission. This important report outlined a three-stage transition plan that would create a single European currency.
   Economically, the Euro’s advantages include:
   Elimination of exchange-rate fluctuations--Any time either a consumer or a business made a commitment to buy something in a different country in the future (at future prices.), they stood the chance of paying much more (or less) than they had planned. The Euro eliminates the fluctuations of currency values across certain borders.
   Price transparency--Being able to easily tell if a price in one country is better than the price in another is also a big benefit, both for consumers and businesses. With price equalization (平等化) across borders, businesses have to be more competitive, pricing still varies, but consumers can more easily spot a good deal--or a bad one.
   Transaction costs--This is particularly helpful for tourists and others who cross several borders during the course of a trip. Before, they had to exchange their money as they entered each new country. The costs of all of these exchanges added up significantly. With the Euro, no exchanges are necessary within the Euroland countries.
   Increased trade across borders--The price transparency, elimination of exchange-rate fluctuations, and the elimination of exchange-transaction costs ail contribute to an increase in trade across borders of ail the Euroland countries.
   Increased cross-border employment--Not only can business be conducted across borders more easily, but people are more easily employable across borders. With a single currency, it is less difficult for people to cross into the next country to work, because their salary is paid in the same currency they use in their own country.
   Simplified billing--Billing for services, products, or other types of payments are simplified with the Euro.
   Expanding markets for business--Business can expand more easily into neighboring countries. Rather than having to set up separate accounting systems, banks, etc. for transactions in countries other than their native one, the Euro makes it simple to operate from a single central accounting office and use a single bank.
   Financial market stability--On a larger scale, the financial and stock exchanges can list every financial instrument in Euros rather than in each nation’s unit of money. This has further meanings in that it promotes trade with less restriction internationally, as well as strengthens the European financial markets. Banks can offer financial products (loans, CDs, etc.) to countries throughout Euroland.
   Macroeconomic (整体经济) stability--Because of the European Central Bank (ECB), introduction of the Euro also helps to lower (and control) inflation among the EU countries.
   Lower interest rate--Because of the decreased exchange-rate risk, the Euro encourages lower interest rates. In the past, additional interest was charged to cover the risk of the exchange-rate fluctuation. This risk is gone with the introduction of the Euro.
   Structural reform for European economies--The participation requirements of the Euro pushed many EU member states who wanted to participate to get their economies in shape and improve their economic growth. With the requirements of the Stability and Growth Pact, they will also have to maintain that control in the future, or face fines.
   While there are many advantages to the. Euro, there are also some disadvantages. The cost of transitioning 12 countries’ currencies over to a single currency could in itself be considered a disadvantage. Billions were spent not only producing the new currency, but in changing over accounting systems, software, printed materials, signs, vending machines, parking meters, phone booths, and every other type of machine that accepts currency. In addition, there were hours of training necessary for employees, managers, and even consumers. Every government from national to local had impact costs of the transition. This enormous task required many hours of organization, planning, and implementation, which fell on the shoulders of government agencies.
   The chance of economic shock is another risk that comes along with the introduction of a single currency. On a macro-economic level, fluctuations have in the past been controllable by each country. With their own national currencies, countries could adjust interest rates to encourage investments and large consumer purchases. The Euro makes interest-rate adjustments by individual countries impossible, so this form of recovery is lost. Interest rates for ail of Euroland are controlled by the European Central Bank.
   They could also devalue their currency in an economic downturn by adjusting their exchange rate. This devaluation (贬值) would encourage foreign purchases of their goods, which would then help bring the economy back to where it needed to be. Since there is no longer an individual national currency, this method of economic recovery is also lost. There is no exchange-rate fluctuation for individual Euro countries.
   A third way they could adjust to economic shocks was through adjustments in government spending, such as unemployment and social welfare programs. In times of economic difficulty, when layoffs increase and more citizens need unemployment benefits and other welfare funding, the government’s spending increases to make these payments. This puts money back into the economy and encourages spending, which helps bring the country out of its recession.
   Because of the Stability and Growth Pact, governments are restricted to keeping their budget deficits within the requirements of the pact. This limits their freedom in spending during economically difficult times, and limits their effectiveness in pulling the country out of a recession.
   In addition to the chance of economic shock within Euroland countries, there is also the chance of political shock. The lack of a single voice to speak for all Euro countries could cause problems and tension among participants. There will always be the potential risk that a member country could collapse financially and adversely affect the entire system.
选项 A、became the largest currency in the world
B、turned out to be the biggest event in history
C、took the place of 12 national currencies
D、became the most popular currency in the world
答案C
解析 由题干中On January 1，2002可定位到第一段首句On January 1，2002，the Euro became the single currency of 12 member states of the European Union.[精析] 段落首句处设题。本题考查欧元的使用对其成员国的影响。根据原句可知，欧元成为十二个成员国的the single currency，这与C)项意思相符，故选C)。
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