A single currency has always been a dream for many European countries, as it would symbolize stability and unity, both economic and political. The Euro was launched in 1999 amid much Euro-phoria. Many people believed that the Euro would replace the dollar as the main international currency: a medium of exchange, store of value, and unit of account. Not only that, but they also believed that it would also be used as the main shipping currency, especially within Europe.
             Saddam Hussein even hoped that the Euro would spell an end of the US dollar's reign and the US's supremacy, and played his part in promoting the Euro by pricing his oil exports in Euros. It is many peoples opinion that a single market would be hard to maintain without a single currency. The economic benefits of the Euro and ECB are as follows.
             Firstly, efficiency gains arise as the single currency removes the need to hedge against foreign exchange risk when dealing with the Eurozone. The second benefit is greater macroeconomic stability as the single monetary policy from an independent central bank provides European countries with an environment of price stability. A single currency should result in lower interest rates, as all European countries would be locking into German monetary credibility. The third advantage, and possibly the most important as it's at the core of EU policy, is a more integrated, vibrant market. The single currency promotes competition, greater economic integration, and deregulation in Europe. Also, because the Euro would have the enhanced credibility of being used in a large currency zone, it would be more stable against speculation than individual currencies.
             In recent years, the economic picture has brightened in Europe. Before the launch of the Euro, US GDP growth was projected at 2.2% in 2000 whereas Europe's GDP growth would be 2.7%. Some countries chose not to join the Euro from the beginning. The UK, already having left the ERM d...