Euro-zone experiment is 12-years old today. It grew from original 11 countries to now 17.
The latest edition is Estonia. It is tiny, but it is first from former Soviet Republics.
|N||Euro Zone Country||Date Entered|
The experiment is growing despite tremendous difficulties. National Governments have to give up one of the potent tools at their disposal – printing money uncontrollably.
I can’t recall anything like this in human history. National Governments voluntarily give up some of their power. Apparently economic benefits of a single-currency Geo-space just outweighs the lost control.
And we know at least 2 examples showing that large areas with the same currency are beneficial – China and USA. So, for Europe, Euro-zone is a good way to stay relevant and competitive in the years to come.
Among notable exceptions to the Euro-Zone right in the body of European continent are Switzerland, United Kingdom and Denmark.
Currently 1€ buys $1.33. It is possible that council of 17 “cooks” will be a better watchdog over Euro than one Federal Reserve (USA) with high power printing presses.