Changes

[[Image:Euro banknotes.png|right|thumb|Euro banknotes|300px]]

[[Image:Euro banknotes.png|right|thumb|Euro banknotes|300px]]

The '''Euro''' is the common [[currency]] in the Eurozone (a group of 13 [[European Union]] states) today.  Use of the euro began in January 2002, and 12 nations switched their currency immediately to the euro.  It is the counterpart to the dollar in the United States.  Countries within the European Union were able to join the Common Currency if they meet 4 criteria (known as the 'convergence criteria'.  These were:<br />

The '''Euro''' is the common [[currency]] in the Eurozone (a group of 13 [[European Union]] states) today.  Use of the euro began in January 2002, and 12 nations switched their currency immediately to the euro.  It is a currency similar to the dollar in the United States.  Countries within the European Union were able to join the Common Currency if they meet 4 criteria (known as the 'convergence criteria'.  These were:<br />

1. The budget deficit must be below 3% of GDP (the difference between government receipts and expenditures.)<br />

1. The budget deficit must be below 3% of GDP (the difference between government receipts and expenditures.)<br />

2. The total government debt must be below 60% of GDP.<br />

2. The total government debt must be below 60% of GDP.<br />

In the United Kingdom the currency is still the [[pound]], but there is pressure to convert to the euro that is used throughout Europe.  As of 2007 the United Kingdom and Denmark are the only European Union member countries with an 'opt-out' (allowing them to select not to join the common currency despite meeting the criteria). In addition to the four criteria of entry set out in the Maastricht Treaty the Chancellor of the Exchequer laid out 5 economic tests the United Kingdom must meet to join.  (At the last report it had met 1.) Many conservatives in England ([[Tories]])resist conversion to the European currency because a reliance on someone else's currency represents a loss in sovereignty and control. For exactly the same reason, English socialists tend to reject the euro as well. In particular, there is fear of England becoming dependent on the fiscal policies of the larger combination of Germany, Italy, and France.

In the United Kingdom the currency is still the [[pound]], but there is pressure to convert to the euro that is used throughout Europe.  As of 2007 the United Kingdom and Denmark are the only European Union member countries with an 'opt-out' (allowing them to select not to join the common currency despite meeting the criteria). In addition to the four criteria of entry set out in the Maastricht Treaty the Chancellor of the Exchequer laid out 5 economic tests the United Kingdom must meet to join.  (At the last report it had met 1.) Many conservatives in England ([[Tories]])resist conversion to the European currency because a reliance on someone else's currency represents a loss in sovereignty and control. For exactly the same reason, English socialists tend to reject the euro as well. In particular, there is fear of England becoming dependent on the fiscal policies of the larger combination of Germany, Italy, and France.

[[Image:626px-Euro coins version II.png|right|thumb|300px|Euro coins]]

[[Image:626px-Euro coins version II.png|right|thumb|300px|Euro coins]]

Initially the value of the Euro fell on the exchange markets, while many expected it to do the opposite.  However it has strengthed of recent times partly due to the falling value of the dollar.  The ECB is charged with maintaining the inflation rate in the Eurozone between 0 and 2%.

Initially the value of the Euro fell on the exchange markets, while many expected it to do the opposite.  However it has strengthened in recent times partly due to the falling value of the dollar.  The ECB is charged with maintaining the inflation rate in the Eurozone between 0 and 2%.

By the end of 2006, after about five years of the euro, a French magazine reported that 52% of the French feel that the euro is a "bad thing".  French workers now blame the euro for price hikes and job losses.  71% of French [[blue-collar workers]] say the euro has hurt them personally.  The Telegraph, 12-27-06.

By the end of 2006, after about five years of the euro, a French magazine reported that 52% of the French feel that the euro is a "bad thing".  French workers now blame the euro for price hikes and job losses.  71% of French [[blue-collar workers]] say the euro has hurt them personally.  The Telegraph, 12-27-06.