European Union Advantages And Disadvantages

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The European Union is an integration of states that have different beginnings, political systems and economies. At the moment the EU is made of 27 member countries with a combined population of over 500 million. What made this union to be homogenous was the creation of a single currency known as the euro. This led all citizens of the EU to depend mostly on the union for the improvement of their respective economies. Firstly, a new currency The Euro, has been introduced in January 2001 in order to create an homogeneous market. This event has been very important to the nations that were included in the EU because it provided the same currency for all states. As a matter of fact free trade between nations of the union could be applied without affecting transaction and, therefore, excluding banks from deals like those which included changes of currencies and avoiding government policies between states with different legislations.This saved enormous time for cross-border trade between states that had different currencies. A single currency offers enormous advantages,such as override fluctuating exchange rates and exchange costs. Avoiding fluctuation of the values make the economy to be more stable. Since the introduction TheEuropean Central Bank is in charge of managing monetary issues of the EU. The main goal is to maintain a stable price and value. The ECB has interest as well as setting a number of interests rates for the euro zone to improve its reservoir for the
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