Contents

 Euro………………………………………………………………………………1
 1 Administration ………………………………………………………………....1
 2 Characteristics …………………………………………………………………2
o 2.1 Coins and banknotes …………………………………………………2
o 2.2 Payments clearing, electronic funds transfer …………………………3
o 2.3 Currency sign …………………………………………………………3
 3 Introduction of the euro ………………………………………………………..4
 4 Direct and indirect usage ………………………………………………………6
o 4.1 Direct usage ………………………………………………………….6
o 4.2 Usage as reserve currency ……………………………………………6
o 4.3 Currencies pegged to the euro ………………………………………..7
 5 Economics ……………………………………………………………………...8
o 5.1 Optimal currency area ………………………………………………..8
o 5.2 Transaction costs and risks …………………………………………...8
o 5.3 Price parity ……………………………………………………………8
o 5.4 Macroeconomic stability ……………………………………………...9
o 5.5 Evidence on the effect of the introduction of the euro ………………..9
 5.5.1 Trade ………………………………………………………..9
 5.5.2 Investment ………………………………………………….9
 5.5.3 Inflation ……………………………………………………10
 5.5.4 Exchange rate risk …………………………………………10
 5.5.5 Financial integration ………………………………………10
 5.5.6 Effect on interest rates …………………………………….11
 5.5.7 Price convergence …………………………………………11
 5.5.8 Tourism ……………………………………………………11
 6 Exchange rates ………………………………………………………………...11
o 6.1 Flexible exchange rates ……………………………………………...12
o 6.2 Against other major currencies ……………………………………...12
 7 Linguistic issues ……………………………………………………………….13
 8 Currency………………………………………………………………………..13
 9 Control & Production…………………………………………………………..14
 10 Coinage……………………………………………………………………….15
 11 Eurozone……………………………………………………………………...15
 12 Members……………………………………………………………………...17
 13 Enlargement…………………………………………………………………..18
 14 Non-member usage…………………………………………………………...20
 15 Globle Currency Reserve…………………………………………………….20
 16 Europion Union………………………………………………………………21
o 16.1 History……………………………………………………………...21
o 16.2 Member of state……………………………………………………22
o 16.3 Geography………………………………………………………….25
o 16.4 Governance………………………………………………………...26
o 16.5 European Council………………………………………………….26
 o 16.6 Commission………………………………………………………..27
o 16.7 Legal System………………………………………………………28
o 16.8 Fundamental Right………………………………………………...29
o 16.9 Foreign Relation ………………………………………………….29
 17 Economy……………………………………………………………………31
 18 Single Market……………………………………………………………….31
 19 Monetary Union…………………………………………………………….33
 20 Competition………………………………………………………………...34
 21 Budget………………………………………………………………………34
 22 Development………………………………………………………………..35
o Agriculture……………………………………………………………..35
o Environment……………………………………………………………36
o Education & Reaserch………………………………………………….36