Euro area

Third, the EMU s stability oriented macroeconomic framework has better prepared euro area countries for economic storms. Thanks to the fiscal rules of the Stability and Growth Pact, the euro area achieved its soundest budgetary position in 2007, bringing deficits to their lowest levels in 25 years.

In the euro area, stability and prosperity anywhere depend on countries thriving everywhere. So there is a strong case for sharing more sovereignty in this area for building a genuine economic union.

There is also continuing talk of creating a single monetary area similar to the euro zone.

The implication, then, is a larger euro area, not a smaller one, as more countries see the writing on the wall. Indeed, there are already signs of countries not even in the European Union, notably Iceland and Switzerland, contemplating accession as a step toward adopting the euro and resolving their financial dilemma.

Third, the euro area needs fiscal co insurance. It needs a mechanism for temporary transfers to countries that have put their public finances in order but are hit by adverse shocks.

Inflation in the euro area was then slightly above 2 . Given the movements in the euro s exchange rate in previous months and sluggish growth in the euro area, we expected that inflation rates would decline, but only to levels close to 2 .

Leaders must start living up to the responsibilities that come with sharing a single currency. They must recognize the impact that national economic policies have on the euro area as a whole, and thus discuss and coordinate economic programs at the euro area level.

In the summer of 2003, public debate and market sentiment in the euro area were influenced by Japan s protracted deflation and the expectation of a possibly severe disinflationary process in America. Some observers saw a risk of sustained deflation in the euro area as well.

Because the ECB was given the sole task of achieving and maintaining price stability in the euro area, inflation rates seem the most logical starting point for comparison. In 1999, the difference between the euro zone countries with the lowest and highest inflation rate was two percentage points.

But the euro makes economic sense only for a subset of its current members, not for countries such as Greece in its current situation. Some economists have proposed a two track euro, with problem countries using a euro B that floats against the euro A until they abide by the economic and financial rules and earn re entry.

With regard to security in the Euro Mediterranean area, I would point out that, in the Barcelona Declaration of November 1995, the European Union and 12 countries of the southern and eastern Mediterranean undertook to promote and strengthen the peace, stability and security of the area.

The problem is imminent in North America, the Euro Area, and Japan. But, before long, many developing countries will also have to face up to it, and in many cases without a cushion of affluence.

The implementation of the Euro Asian corridor idea by means of the European transport systems as well as the TRASECA project will contribute to full scale economic integration with the Euro Asian land area.

The technical conditions required for the Single Euro Payments Area (SEPA) have been met. Customers can, for the first time, make all their euro payments as safely, efficiently, and conveniently as they do at home.

Second, China will have to make its currency convertible. Third, the position of the euro will strengthen over time as more countries will join the euro zone.

But it was never intended to do that. Instead, the euro achieved what it was meant to achieve the crisis was contained, because it could not inflict damage on foreign exchange markets within the euro area.

That is why I believe that these countries and the eurozone more generally would benefit from euro depreciation. Although a weaker euro would not increase their competitiveness relative to Germany and other eurozone countries, it would improve their competitiveness relative to all non eurozone countries.

One can argue that the worst is yet to come that there will be more inflation and unemployment down the road and that, when they come, the euro area will collapse. Euro skeptics always make this argument.

Countries departing for the northern euro should make a one time contribution to these debt reduction efforts. A flexible membership system would enable countries to join the northern euro when their economic and fiscal conditions became strong enough.

Euro area countries depend on one another for growth. And, more fundamentally, if a lack of structural reforms leads to permanent divergence within the monetary union, this raises the specter of exit from which all members ultimately suffer.

United Nations Euro pean Space Agency Training Course on Applications of Euro pean Remote Sensing Satellite Data for Natural Resources, Renewable Energy and the Environment, for English speaking African countries

Since then, Malta has been keen to further develop this interregional approach to security and stability in the Euro Mediterranean area. The recent meeting of the Ministers for Foreign Affairs of the Euro Mediterranean area, held in Malta last April, has led to further advances in the field of confidence and security building measures.

Euro

Euro

EURO

In small countries, where a significant share of bank liabilities is in someone else s currency, the national central bank lacks this capacity. The only options are then to slap draconian controls on the banking system or join the euro area.

But for those coming from euro candidate countries, the event was a cold shower. Just as the global financial crisis has made euro membership seem more urgent and necessary than ever, euro incumbents have started floating proposals that would raise the bar for entry.

Thirteen countries in the European Union use the euro as money. But the commitment of these independent political entities to the euro cannot match the history of America s commitment to the dollar.

But some countries remain back in this area here.

Also encouraging was the fact that regional cooperation in the Euro Atlantic area, Africa and Latin America was focusing more and more on light weapons.

Together with 46 European countries, Bosnia and Herzegovina started the programme to control TB in Europe, Euro TBC.

Welcoming the efforts deployed by the Euro Mediterranean countries to strengthen their cooperation in combating terrorism, in particular by the adoption of the Euro Mediterranean Code of Conduct on Countering Terrorism by the Euro Mediterranean Summit, held in Barcelona, Spain, on 27 and 28 November 2005,

Thus, budget deficits are the rule, and where they are largest, as in the Czech Republic and Hungary, they have gained priority over euro adoption. Indeed, only Slovenia has been admitted to join the euro area in 2007, the earliest possible date.

Euro House

Euro Techno

When it comes to internal competition policies, most European countries still think within the national box. For the euro to help lift European growth and productivity in any significant way, governments must allow indeed, encourage stronger competitive forces across the EMU area.

The new rates are effective from the school year in progress on 1 January 2005. The currency areas where increases were approved are as follows Austria (euro), Belgium (euro), Denmark (krone), France (euro), Germany (euro), Ireland (euro), Italy (euro), Japan (yen), Netherlands (euro), Spain (euro), Sweden (krona), Switzerland (Swiss franc), United Kingdom (pound sterling), United States dollar in the United States and the United States dollar outside the United States.

Together with 46 European countries, BiH had entered a program for the monitoring of tuberculosis in Europe Euro TB.

Adoption of the Euro should foster even greater trade integration by eliminating exchange rate risk, lowering transaction costs, and promoting greater price transparency and competition. The experience of current euro area members thus far suggests trade gains of roughly 10 just from the single currency.

When the euro area manages to agree swiftly on a coordinated position, this can be instrumental to finding agreement in the EU as a whole and internationally. It is vital we now build on this success and develop a genuine international strategy for the euro.

In this respect both sides agree that no State, organization or grouping should have any superior responsibility for maintaining peace and stability in the Euro Atlantic area.

A Euro Sabbatical

The Euro Ark

The Naked Euro