The Euro. The single European currency, the euro, was launched on 1 January 1999

The single European currency, the euro, was launched on 1 January 1999. Since that time the € sign has become as familiar as the $ or ₤.

A stable currency whose owners are as big in world trade as the European Union is attractive to a lot of international investors who want to be less dependent on the dollar.

A single currency has potential benefits for the economy of every European Union’s country, in particular, as well as for all member states in general. Among the advantages the following can be pointed out:

s lower transaction cost: the euro makes commerce within the EU easier by abolishing the currency exchange mechanism. This, in turn, provides for lower transaction cost.

s transparent price differencies: the single currency makes price differencies in different countries of the Euro zone more obvious.

s reduced costs: for customers, in particular, to travel to other countries; easier and less expensive transfer of funds to other countries; secured purchasing power owing to lower inflation; more sustainable economic growth, which will increase employment.

Exercises in Word Study

Ex.1. Form adjectives from the following nouns:

stability, owner, attraction, advantage, benefit, commerce, economy, difference, purchase.