{"id":1177725,"date":"2022-01-01T12:34:38","date_gmt":"2022-01-01T17:34:38","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1177725"},"modified":"2022-01-01T12:34:41","modified_gmt":"2022-01-01T17:34:41","slug":"inflation-and-integration-the-euro-turns-20-years-old","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-and-integration-the-euro-turns-20-years-old\/","title":{"rendered":"Inflation and Integration: The Euro Turns 20 Years Old"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Finflation-and-integration-the-euro-turns-20-years-old%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1177725&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/01\/GettyImages-1237450338-e1640961423549-640x335-1.jpg\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p class=\"subheading\">The euro \u2014 the centralised currency of the European Union \u2014 has turned 20 years old on Saturday.<\/p>\n<p>The European Union\u2019s main currency, which is used by 19 of the bloc\u2019s 27 members, has entered its second decade of use on January 1st, 2022.&nbsp;Since its inception, the euro has been the centre of both praise and controversy, with it being lauded as a source for European unity as well as derided as the cause of division.<\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<p>Commenting on the euro\u2019s 20th anniversary, European Central Bank President Christine Lagarde said that the currency has become a fundamental part of European identity.<\/p>\n<p>\u201cIt has helped unite us as Europeans,\u201d Lagarde <a href=\"https:\/\/www.independent.ie\/opinion\/comment\/the-euro-is-20-years-old-and-used-by-340-million-people-thats-worth-celebrating-41195855.html\">wrote<\/a> in the <em>Irish Independent<\/em>. \u201cIn the latest Eurobarometer survey, when asked what the European Union means to them, 41pc of citizens said they think of the euro. Our single currency was second only to freedom of movement.\u201d<\/p>\n<p>\u201cClearly, Europe and the euro have become inseparable. And for young Europeans, who have only ever known the single currency, it must be almost impossible to imagine Europe without it,\u201d the ECB head continued. \u201cIn fact, support for the euro stood at an all-time high in 2021. And according to the latest Eurobarometer survey, our currency now has a 78pc approval rate.\u201d<\/p>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<p>Austrian Finance Minister&nbsp;Magnus Brunner also <a href=\"https:\/\/www.krone.at\/2593388\">praised<\/a> the currency on the run-up to its birthday, saying that it has been of great benefit to his country.<\/p>\n<p>\u201cThe euro is a social, economic and political success story with a historical dimension,\u201d Brunner said, according to&nbsp;<em>Kronen Zeitung<\/em>. \u201cThe introduction of the euro 20 years ago not only brought noticeable improvements for citizens, for example when you think of a vacation in a euro area, but our economy has also benefited over the long term.\u201d<\/p>\n<p>\u201cFor the future, we must do everything we can to ensure that the euro continues to be a strong and stable currency,\u201d the finance minister also said.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Eurozone Inflation is Now at The Highest Level Ever <a href=\"https:\/\/t.co\/JQtwe0z4JO\">https:\/\/t.co\/JQtwe0z4JO<\/a><\/p>\n<p>\u2014 Breitbart London (@BreitbartLondon) <a href=\"https:\/\/twitter.com\/BreitbartLondon\/status\/1466395223848722438?ref_src=twsrc%5Etfw\">December 2, 2021<\/a><\/p>\n<\/blockquote>\n<p>However, while many have praised the uniting force of the single currency, the Euro has also served as a source of division at points throughout its history.<\/p>\n<figure id=\"M-ROS-B3\" class=\"a8d adSo\"><\/figure>\n<p>While adopted by many major players within the European Union, the currency never took off in the UK, <a href=\"http:\/\/news.bbc.co.uk\/2\/hi\/uk_news\/7806936.stm\">consistently<\/a> <a href=\"https:\/\/web.archive.org\/web\/20110815070707\/http:\/\/www.angus-reid.com\/wp-content\/uploads\/2011\/07\/table_eu_jul2011.pdf\">remaining<\/a> <a href=\"https:\/\/d25d2506sfb94s.cloudfront.net\/cumulus_uploads\/document\/v17h1b66px\/Handelsblatt_ToplineResults_Feb2020_public.pdf\">unpopular<\/a> right up until Britain left the bloc.<\/p>\n<p>The currency was also cited as a driver for Euroskepticism, with opposition to the currency being an <a href=\"http:\/\/news.bbc.co.uk\/2\/hi\/uk_news\/politics\/948175.stm\">early<\/a> <a href=\"https:\/\/www.theguardian.com\/politics\/2004\/oct\/05\/otherparties.uk\">platform<\/a> for the UK Independence Party (UKIP).<\/p>\n<figure id=\"D-ROS-B2\" class=\"a8d\"><\/figure>\n<p>Economic and social issues have also haunted the currency since its introduction, with the bloc suffering its <a href=\"https:\/\/www.breitbart.com\/europe\/2021\/12\/02\/eurozone-inflation-hits-highest-level-since-introduction-of-the-euro\/\">highest level<\/a> of inflation since 1997 this year.<\/p>\n<p>While inflation on average for nation\u2019s using the currency was 4.9 per cent, energy costs have increased an average of 27.4 per cent within the bloc.<\/p>\n<p>While the European Centra Bank (ECB) initially tried to play down the inflation issue as being temporary, the central bank\u2019s deputy has since <a href=\"https:\/\/www.breitbart.com\/europe\/2021\/12\/21\/ecb-deputy-euro-inflation-not-as-temporary-as-we-expected\/\">admitted<\/a> that inflation \u201d is more persistent and not as temporary\u201d as they initially expected.<\/p>\n<figure id=\"M-ROS-B4\" class=\"a8d adSo\"><\/figure>\n<p>Warnings have also emerged regarding an upcoming redesign of euro banknotes, with the original designer of the bills saying that a rework could spark national rivalries.<\/p>\n<p>\u201cThe question is whether people have come far enough to accept, for example, famous people being represented,\u201d Austrian note designer&nbsp;Robert Kalina said, according to a <a href=\"https:\/\/www.rte.ie\/news\/world\/2021\/1229\/1269012-euro-artist-rivalry\/\">report<\/a> by Irish state-broadcaster RT\u00c9. \u201cMight it perhaps cause jealousy?\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">ECB Deputy: Euro Inflation \u2018Not as Temporary As We Expected\u2019<a href=\"https:\/\/t.co\/JZkIafsid0\">https:\/\/t.co\/JZkIafsid0<\/a><\/p>\n<p>\u2014 Breitbart London (@BreitbartLondon) <a href=\"https:\/\/twitter.com\/BreitbartLondon\/status\/1473322375475126274?ref_src=twsrc%5Etfw\">December 21, 2021<\/a><\/p>\n<\/blockquote>\n<p>The currency has also been criticised for its one-size-fits-all nature, with two J.P. Morgan economists,&nbsp;David Mackie and Greg Fuzesi, noting that the ECB has faced a number of serious challenges in the currency\u2019s first 20 years.<\/p>\n<p>\u201cIn the first decade, the ECB achieved its objectives, at least in terms of growth and inflation,\u201d CNBC <a href=\"https:\/\/www.cnbc.com\/2019\/01\/28\/euro-turns-20--has-monetary-union-been-a-good-thing.html\">reports<\/a> the pair as saying. \u201cBut beneath the surface, stresses in the euro area were building in the form of large intra-regional financial imbalances driven by excessive leverage in a number of individual countries, Spain, Portugal, Greece and Ireland.\u201d<\/p>\n<p>\u201cFor all of the second decade, from 2009-2018, the ECB was dealing with the macro consequences of the unwinding of the imbalances that had built in the first decade,\u201d they continued.<\/p>\n<p>\u201cThe obvious failure of the euro is that it\u2019s a seriously incomplete currency union,\u201d <a href=\"https:\/\/www.cnbc.com\/2019\/01\/28\/euro-turns-20--has-monetary-union-been-a-good-thing.html\">said<\/a> another analyst, Constantine Fraser, from TS Lombard. \u201cIt was set up with only some of the institutions that a currency requires.\u201d<\/p>\n<p>\u201cThat, and policy mistakes by member states such as the unnecessarily aggressive stance on deficit reduction (and to a lesser extent mistakes by the ECB like the 2011 rate hikes) caused a massive depression in the region,\u201d Fraser continued.<\/p>\n<p>While the currency has managed to survive the challenges of the last decade, Fraser noted that future dangers lie ahead.<\/p>\n<p>\u201cThe single biggest and ongoing failure, or problem, or headache in the Eurozone is Italy,\u201d he said. \u201cIt cannot grow, it has a creaking economy, it been out-competed by the likes of China and it has an ageing population.\u201d<\/p>\n<p>\u201cIf it had its own currency it could (devalue it) and become more competitive but it can\u2019t do that in the euro,\u201d he continued.<\/p>\n<p>Ultimately, Fraser noted that Europeans do not yet feel \u201c\u2018European\u2019 enough to be happy with large fiscal transfers from one part of the Eurozone to another.\u201d<\/p>\n<p>\u201cThe Eurozone is incomplete, it has all these problems and it needs to get deeper, it needs to integrate more. It can\u2019t stand still otherwise it could fall,\u201d the TS Lombard analyst said. \u201cThere is the political will to make sure it survives but how fast it can move towards more integration, by making small incremental changes, is unknown.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The euro \u2014 the centralised currency of the European Union \u2014 has turned 20 years old on Saturday. The European Union\u2019s main currency, which is used by 19 of the &#8230;<\/p>\n","protected":false},"author":297,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1177725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1177725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/297"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1177725"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1177725\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1177725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1177725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1177725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}