The Euro Explained: The History & How Countries Join - TLDR Explains
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- Опубліковано 27 чер 2024
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The Euro has been the official currency of many EU nations for about two decades, so our Patreon audience's request we're going to discuss how countries join the single currency and the history of the Euro.
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Living in a small country (Belgium), it is really helpful to not have to switch currency every time you drive for 3 hours.
I remember my parents having different wallets for French, Dutch, German, Spanish, Italian, Austrian and Swiss currency.
Never thought of the convenience factor tho. Good one m8!
@@sebdcord could you please explain what you mean with "people's livelihoods" in this case?
@@AdriLeemput Greece
@@yetekt8025 It is a bit unfair to blame all Greece's economical problems/issues on the Euro.
Yeah, I also love fr*nch fires btw.
I'm no economist and wouldn't even try to understand any of it
BUT as a citizen of Luxembourg I massively enjoy not having to change currency anytime I leave our tiny country
SAme as an belgian
google pay 😃
I know how dependent smaller countries in the eurozone are on dependent on trading with the euro and how European economies are interconnected. A fight for individual control over monetary policy is quite confusing. Then again, I won't claim to know enough. As much as I believe a nation's growth and an economic recession are related and how economic downturns are natural, now is the moment to rethink the policies that are to blame especially with the ECB increasing rates and making loan repayments harder for the basic people. In either case, I'm happy I sold the vast majority of my euro holding at a premium. Can't risk the dollar drawdown alongside the euro.
Beware of little expenses; a small leak will sink a great ship. -Benjamin Franklin
I'm not completely against selling now. True, many businesses would suffer losses as a result of the recession or even depression, but a boom always follows a dip. This is just another reason why financial preparation is crucial. Businesses who have planned ahead will succeed despite this. Consider how I was able to enhance my ROI this bear season by about 20% by following Yvonne Anette Lively's advice. To the best of my knowledge, it primarily involves knowing when to enter and exit a situation.
@@maryalchester 20% is quite impressive this beat season. What assets are you holding? I do more of etfs? What’s your pick on that and we could look up -yvonne annette lively huh?
Impressing
@@alyoshaivanovv 20% damn that’s huge compared to my red balance
The EURO really made evident the cracks in Portuguese economy and competitiveness. By not being able to compete by lowering the currency value, Portugal had to compete by making better products, different products, something. Basically that was when it became clear how behind and unprepared Portugal was for competing in the global market. I do not blame the EURO for it, I blame bad management and lack of vision
be quiet bots, (not you Carlos costa)
Lies again? Ezlink Card USD SGD
I think there are pros and cons in a shared currency. What I know for sure is that i find some critics to euro not particularly strong, in particular when it's said that different economies cannot share the same currency. Well, there is a union made of 50 different economies that share the same currency: the dollar. And apparently it works. Moreover, if that statement is true, then even inside the border of most of the national countries that I know there should be different currencies: England has a different economy than Scotland or Wales, the south of England has a different economy than the north. We can say the same about north and south of Italy, west and east Germany.
the only difference between the US Dollar and the Euro is that the US Dollar has one owner the USA. the Euro has technically all the Euro group nations together as the owner.they all have a VETO power if they really insist.
the USA could order the federal reserve to start printing more money at any point.
for the Euro a member nation by it self can not do so. they have to agree with there other members to do so.
@@sirBrouwer true but technically the central banks "should" be indipendent from the political power and have power of manoeuvre. Indeed Trump was not very happy about the monetary policy of the fed, as some eurozone countries were not very happy on the monetary policy of the European central bank during Draghi governance
@@manuelapollo7988
the ECB do to the system being ruled by multiple national governments at once. becomes more independent.
only when all 27 nations agree one something new a policy can be changed.
this gives the ECB more time to do so before a new rule forces them to change.
the US fed. could be forced by congress if they really want to change something. that is once less layer then with the European scale. (and only once)
The US$ does not work. Most of the country away from the eastern and western seaboards, around the Great Lakes and Texas is an economic desert.
The £ is a cause of the UK's chronic regional economic imbalance. Wealth is sucked out of the regions through the tax and financial systems. A means of recycling that wealth to the periphery is needed, but there isn't one. That is a prime cause of the stress which now threatens the unity of the UK.
petition to quote prices of patreon plans and e.t.c. on the tldr news eu channel in euros considering it's the *eu channel*
I like that Italy, a boot, has the islands of Sicily and Sardinia as shoes🤣
I could see Sardinia as one of the shoes but Sicily is definitely not one of the shoes
According to legends, Sardinia was created when god stepped onto the sea and left the mark of his sandal. That's why it was also called "Sandalia".
Or Italy is the boot, Sicily and Sardinia are the footballs
The saying in the UK is ‘Italy is kicking Sicily into the Mediterranean Sea’
The Euro and the EU laws made it possible to start our company in 2001 relatively easy. It would have taken much longer to be profitable for us and the cost s would have been much higher.
@The Swedish Truth I gained freedom and money so what is your point?
@The Swedish Truth let me guess, you're not a fan of the EU and/or the single currency, your The Swedish Truth nickname implies you are the beholder of the truth and because I don't agree I'm selfish and can't see further than my nose? Hmmm, Interesting....
@@CrownRider wow so funny that that person has removed his comments and account lol
@@matyasmatta Maybe it was a Troll that was removed by YT. We will never know...
I definitely want more videos about the euro.
Every country that has the euro has seen their standards of living improve. Greece was saved by the euro, without the euro they would have entered a far worse economic crisis and hyperinflation like Argentina.
Thanks to the euro and the intervention of the EU and ECB to save Greece, they now have to pay only 1.5% interest on their public debt, while Argentina is forced to pay 40% interest because their currency is much weaker.
Inflation hits hardest the weaker people in society: employees and pensioners, because it destroys the value of salaries, savings and pensions.
The euro put a stop to that in every state that adopted it.
Yeah the Greeks wanted to be saved so bad that they faked their economic performance in order to get the euro lol and now they are paying (literally) the consequences of that. But I guess each country had its own selfish motivations to join the euro, it's the final result that matters in the end
In an economic crisis a currency devalues, as you stated, which in return makes goods and services cheaper. People purchase those and the economy starts to recover. Greece didn’t have this advantage. Watch the video on Greece from Economics Explained.
@@hanagreg so true, that is why people in Venezuela have no trouble now (sarcasm)
@@hanagreg currency devaluation is clearly not an advantage.
Argentina devaluated their currency and yet it has defaulted over and over again, 8 times in less than 10 years. Their economy is terrible.
Not only it's not a solution but it destroys the value of salaries, savings and pensions.
Also as I said currency devaluation leads to extreme interest rates on debt. If you have to take a loan would you rather pay 1.5% interest like Greece does thanks to the euro or pay 40% interest per year, like Argentina does due to currency devaluation?
Choose wisely.
I actually am an economist and there are, as usual, pros and cons and whether or not something is a good idea depends on how you measure those pros and cons against each other. Personally I think the pros outweigh the cons, but one can always find special cases and situations where they do not.
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When I worked in Brussels in the 80s. 3% of European turnover was wasted on currency exchange.
Much of that money found its way to London. That is why the UK has always been dead set against the Euro.
Wonder how much money made and lost as the euro was phased in.
I think national pride gets in the way of Euro adoption. European economies are so interconnected already that an argument for individual control over monetary policy doesn't make a ton of sense. Does a country like Denmark really have the economic power to control their currency's value when it is so reliant on trading with the euro? I would doubt it personally, but don't know enough to say for sure. The UK would be the exception here.
Why is it that British people think that the UK is so different from every other country in the world that it always needs to be the exception?
Don't British people breathe air, drink water and eat food like us, rest of the world, mere mortals?
@@ChilapaOfTheAmazons I'm just referring to the bigger economy and the fact that the pound is an established reserve currency. Making it distinct from any other non-eurozone eu country.
When it comes to the Danish krone, it's basically the Euro in everything but name.
It's just a bit of nostalgia, for people who're stuck in the past.
@ShadowFalcon Agreed - we have a fixed exchange rate to the euro, so we might as well have euros...
@@lvoldum
Would certainly make it easier when we take the trip south of the border for vacation/shopping. Or for tourists making the journey north.
Congratulations on the last section. I think you gave the correct perception on who dislikes the euro and who doesn't. Most negative information comes actually from the United states, whose media consistently try to proclame the end of the euro. But in the end of the day it makes life easier for those who carry it in the pockets. Just check inflation rates in several countries before and after the euro. And it also protects us from our politians individual interests.
Perhaps it instead explains why those countries don't have the Euro.
If they were in favor of it, they'd have it (or try to get it).
Like the Greeks. They even forged their stats to get the Euro faster. They were desperate to get it.
@@tylerdurden3722 agree. And i don't blame them. In someway, i would thank my politians if it was discovered the same thing had been done in Portugal.
I'm not sure a survey among the general population is necessarily a good way to evaluate wether the euro was a overall a success or not. It does reflect that the euro is incredibly practical and comfortable for individual citizens traveling, studying and buying things in europe, which is one single aspect in which it definitely was unquestionably of advantage.
It tells us very little about a macroeconomic perspective however, about which countries economies actually benefit from it and for whom it presents a disadvantage.
Which i'd have been more interested in than citizen approval rates. (If anyone can refer me to content exploring that, they are welcome!)
The UK is like that, it's all doom and gloom, not just on the Euro but on the EU as well, if you were to listen to them, the EU and Euro would have fell along time ago so clearly it's fear that's getting the best of them because there is no real signs of the EU or Euro falling apart any time soon even with all this pandemic going as well as Brexit and in fact, it seems like support for the EU and Euro is growing among its members and growing quite fast in the UK in wanting to rejoin the EU according to many polls.
@@paul1979uk2000 that is interesting to know. But to rejoin the EU you would have to accept the Euro and Schengen. I doubt maintaining the op outs would be politically acceptable. And i doubt people will accept the euro.
I came here mainly to hear about the pros and cons of the Euro, so since that was barely part of the video I'd love you to make another one on it.
he will make two further parts, this is part one of three
Could it be like hearing about the pros and cons of eating apples? Of course there are much more pros than cons, so would you think you have to find and talk about very small cons to balance the video?
Just asking, no offence intended.
I literally have no idea how i can use the euro in greece , debt is 191% of gdp and we lied to get in the eurozone in the first place
Lovely vid. Well explained.
My biggest gripe with the Euro is the exchange rate vs the CAD is so high ordering anything from Europe bankrupts me. =P
Well I don't know about the Euro as a whole but I tend to prefer to spend my vacation in countries that have Euro as I don't need to bother with conversions. In the past 14 years among all the countries that I went to only UK, Hungary, Croatia and Bosnia were the ones that don't have Euro and I spent a lot less there (only food in shop and camps - I even ignored restaurants) as I didn't want to bother with exchange rates or value calculations in my head.
2:52 The logo is the one of the EU Commission, not the EU Council...
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This is gold. Thanks TLDR. Very well explained. Specially the criterias to join and stay in the Euro. I don't want to take sides on arguments, but try to present some interesting arguments I heard about the issues of the Euro, mostly arguments of Yanis Varoufakis (or at least how I understand his arguments).
If you have a single currency across economies so different without a banking union, different countries has different costs of borrowing. For example, borrowing in an indebted country like Greece would cost more than borrowing in Germany. And obviously if you are getting money in Germany to start a business you will demand that this business starts in Germany, not in Greece.
The other argument is that since ECB is the entity that has the power to value/devalue the Euro (even with grotesque mechanisms like ECB Quantitative Easing) the countries loose the power.
So, basically in times of fiscal crisis (Greece for example, and Some other to come), the EU institutions have the power to do whatever they want, using the threat of kicking them out of the Euro as a motivator (Greek crises shows this very well and ended up in a bank run). And the argument here is that: is this democratic?
The point is, if an elected government is forced to do whatever the troika wants, the democratic principle is gone.
ACTUALLY, I'M NOT AN ECONOMIST, PLEASE TELL ME MORE...
oh, I LOVED that remark :)
in short yes,
in long, BUT, but a real set op eurozone control lacks,
that made it possible for greece to spend like crazy and going all under after a USA morgage crisis and thus caused the eurocrisis ..
so BUT EU need more control mechanism to prevent such stupid extra spending in good times,
perhaps with UK out now some more rules can be estabished?
and 2nd but : the sountern EU countries really failed to realise that a single currency ALSO mend that deflating your currency to get yourself out of debt is thus of the table, looking at italia there mostly ;-)
Thanks to TLDR for this explicative video, as good as many others they make. Just a couple of notes: A) it would be of some use to remind that, beyond the 3% deficit rule (which, by the way, is considered by 90% of economists more or less an invented number, with no scientific-economic support), the Maastricht Treaty also says that no Eurozone Country can have a surplus greater than 6% (Germany has a surplus between 7% and 8% for years now, in the silence of the other members).
B) A single currency for a number of Countries with different economic dynamics can hardly work unless it is designed for that. I the USA the Dollar works because the Fed has different rules and mandate than the ECB and do not forces eg. Alabama to the most undignified and deprived conditions when it cannot keep the economic pace of Massachusetts or California. The ECB instead, in spite of some comments here, destroyed Greece and its population in the name of the nation's fiscal health and of a debt based (highly questionable) policy.
C) More than a single currency, Euro is a fixed exchange rate agreement between the Eurozone member states. TARGET2 system (Eurozone inter-banking network) still works like if each Country had its own currency (see the quite technical topic of bilateral balances).
Despite these gloomy notes, I also acknowledge the positive aspects of Euro. Therefore, I would like to see the politicians and economists of the Eurozone to look for an improvement of the Euro mechanism to avoid its progressive dismantling.
I've studied economy and business administration and my answer is a strong "yes and no" with emphasis added to the "yes" part.
Loved this video
The idea of the Euro is great, but having a European monetary policy is useless without a common fiscal policy.
Every country in the world has its own monetary policy (that is, control over its currency) and its own fiscal policy (that is, the ability to decide expenditure and taxation). Every country except the Eurozone, where the monetary policy is controlled by the EU Central Bank, a federal-level institution, while fiscal policies are autonomously formulated by the Member States, which by themselves cannot decide on the currency (e.g. they cannot print money). This has created all sorts of problems during and after the crisis, problems we are still dealing with to this day. Such system makes no sense. The EU should be able to set monetary AND fiscal policy. For any currency system to work, these two must be in tandem.
(Yes, this means the EU should be able to levy taxes on behalf of the states)
So many things I common in the EU. I was really surprised to learn there's still no common taxing nor common crimminal ofenses levied by the EU itself.
Guess what country was totally against a common taxation policy?
@@albertoa.r.5886 UK?
Interesting
This means not only that the EU should raise taxes on it's own, because this is not possible without becoming a proper state.
So in conclusion, the EU must transform into a proper, federal state, not just a union of nation states.
And it still takes a loooooooooooooooooooong way to go until it becomes one.
With states like Poland and Hungary and other eastern european countries, having seemingly joined the EU only for the economic advantages but not for the european idea, this is not going to happen soon.
I love the euro
You forgot about the Eurozone crisis didn't you?
@@SquirrelKnight50 That only happened because Greece lied about its financial state. We realized how bad it was until it was too late.
@@SquirrelKnight50 And yet despite that Greece still has high percentage of people that like the Euro.
@@SquirrelKnight50 do u realize that the cause was the 2008 word financial crise that started in the US?
And i hate
Nobody:
Comment section in this video:
"Im something of a Economist myself"
Aah! We got all EU Countries in Shoes icons! 😭 My day is now complete! Lol
I was waiting to see how some of them would look like. XD This is sooo cuuute I can't.
I totally agree and don't even have a shoe fetish.
@@floxy20 omfg bruh xddd
I can tell you the opinion of the Finnish economist Sixten Korkman about the Euro and Finland. He thinks joining the Euro was a bad idea because it cave away monetary control and it was a miracle the transition went as smoothly as it did. More importantly he thinks we are so immersed in the Euro now that it would bring lots of instability and harm if Finland left the Euro.
please further analysis on the pro's and con's of the euro!
I love the Euro its easy when you travel around Europe, and it always seems to be cheaper
Something I think is a bit interresting is that several of the more recent members of the euro zone are countries that have got independet from biggers countries like Estonia, Latvia, Lithaunia (Sovjet Union), Slovakia (Czechoslovakia), Slovenia and soon even Croatia (Yugoslavia).
I just like the Euro because it is convenient. I don't have to think about exchanging money when I travel.
(And at least it not as stupid as US Dollars where all bills are the same size and colour. So confusing. )
I like the euro and use it - BUT.. it it really that hard to READ THE NUMBER printed on US currency??
US dollars fit nicely on your wallet, though. Brazil adopted differently sized bills in the early 2010's. R$50 and R$100 bills don't fit well in most wallets.
@@judychurley6623 My first experience with USD coins were like: " 'One dime'? How much the hell is this?"
Totally agree. And I like our colourful Monopoly notes ♥
Convenient, but disastrous as an economic policy though. Make the most of them, they are on borrowed time.
I recomend anyone to just read the Wikipedia Article, it will save you time and leave you better informed.
This Video has some serious factual errors and also seems to suffer from misunderstandings on the end of the producers.
One of the few most glaring ones:
The Euro is not "kind of" the Currency of the EU, IT IS per the Tretaties the official currency of the EU!
Sweden is obliged to join and thus also in violation of the treaties.
That also applies to the czech republic and hungary btw.
The Situation with EU Countries not joining, apart from those with a permanent opt out, is that they effectively fail to notify the EU Comission of having reached sufficient convergence.
Effectively the treaties don't have a sanctioning mechanism for countries that dont do this, so when you dont have compatibility of legislation ( like those countries do) you are not obliged to join because you dont meet the convergence criteria.
Its realy a rather questionable legal argument and one could well imagine the ECJ to rule against these countries at some point in the future.
Realy the main reason no one has done anything about it is Realpolitik: There are bigger fish to fry and no one wants to force the issue for fears of playing into the hand of eurosceptics (which is probably the right interpretation)
Thank you. They are British so I didn't expect them to get anything EU correct...
wel that is a factor but also the fact that the EU as a body can not really enforce anyone to do so. all the nations are still sovereign over internal affairs and also all have a VETO they can use to make a rule to not be applied to some extend.
@Ivan Koivonnen and in that case the EU can't make a rule to force that because Sweden as a member could just VETO agents that rule.
Hungarian here: Yes! Give us EURO for the love of God. I don't know a single person who wouldn't welcome that. Of course aside from our government which is more of a private business than a government, but that's a story for another day.
And here I thought the Euro was the best weather forecasting model.
West Germany had to agree to the single currency to secure French support for uniting Germany. And they had to devalue anyway during the unification.
Bulgaria is de-facto in the Euro since the beginning, since the Bulgarian currency has a fixed rate to the Euro and the country has been under monetary board since 1996, with all the fiscal rules in place for decades now. Unlike other EU countries, about to join, for Bulgaria switching to the Euro is basically a formality.
@Olivia Purcel inflation happens with every change in any market. Euro is just one such change used as excuse. Price is something you pay for a good/service, it's not what you think it's worth. Inflation wouldn't happen if there wasn't room for it.
Quick note, many words in french have mute last letter. Franc drops the c, else it sounds like Francs the population (Franks in English but the s is mute in French).
The Euro is doing well, all though the main issue is that monetary and fiscal policy aren’t done on the same level, which is why we need an EU fiscal union.
exactly, without fiscal union the process is incomplete.
Actually, not an economist, but citizen of the Eurozone, have lived with the French Franc until I was 17, and the Euro, can't imagine going back. So convenient. But I have to say prices were rounded up shamelessly around 2002/2003 and everybody could tell. I have yet to travel to all Eurozone countries, but going and planning trips to BE, NL, ES, was super easy. It's always weird being 'abroad' but using the coins and notes you'd use back home.
Also I'm a huge nerd and I used to collect 'foreign' Euro coins, and track notes on a website, but I stopped.
It's not really abroad if it's in the EU :)
Euro is a great instrument of unity imho.
Yes, I want to know about the pros and cons of the Euro.
The Copenhagen criteria-which even the Copenhagen establishment doesn’t agree.
10:34 Looool! So true XD
If the people living in countries that have the euro like it I would say they speak with experience and that it did them good, otherwise the people living in the countries that have it wouldn't like it.
Or then it's just because people just want to be right and not admit mistaked. Same goes for the countries not in euro thinking euro is bad for them. Because as said in the video even economists can't agree whether it was good or bad idea.
That's not necessarily true. For example, people living close to coal power plants are more likely to be supportive of them than people living far away. That is coz they're often closely connected to them, by work mostly. People whose existence does not depend on the existence of those coal power plants are more likely to be against them.
Who's able to form the most objective opinion on this matter? People who are dependent or independent people?
No country who doesn't want the Euro should be made to use it, regardless of how those who have it feel.
@@3seven5seven1nine9 I never said they should be forced to have it, just that given the fact that the people in the countries that have it are happy with it, it probably means that it did more good to them but if a country doesn't want it, I mean it's their loss
@@paocut9018 I mean, by that logic shouldn't the countries not wanting to euro be speaking from experience too.... They seem to be happy with their own system...It must be good for them right?
Pierre Werner was the PM of Luxembourg, not of France! 06:00
8:30 No that's not why he did it, he did it because he wanted France to support reunification between West and East Germany.
It's interesting to read the comments on this video about the💶Euro...👌🏼 I'm a numismatic from the USA and I've decided recently to start collecting foreign currency, and I wanted to collect a set of Euro dollars...👍🏼 But I searched and found this video because I wanted to learn more about this concept and why most of Europe adopted one common currency...💁♂️ Now I'm a bit more educated on the matter from watching this video and reading the comments...💯✔
Please don't call it Euro Dollars! It has NOTHING to do with the dollar, the currency is simply called EURO.
I wish you success with your collection, I have already filled many piggy banks with Euro coins. Then I sorted the coins by country. I come from Germany and of course most of the coins were from there. However, I have never had a coin from Monaco, the Vatican or Andorra. It is very difficult to get them.
Euro dollars lol, its just Euros 😂
You Americans really think the entire world is revolving about you, don't you?
However, the cents are called Euro cents.
The Euro just made everyones life easier. Not only are you free to travel across the EU's members, but most of the time you don't even have to exchange your money! That makes calculating your spending easier and getting used by someone at a foreign gas station ever harder!
I won't even try to be the "economist" mentioned in the video, but if there's someone out there who can teach me about how the euro effected the global/europes economy, I would be glad to hear what you have to say.
I was 7, saw a big 2000 and a euro sign in the sky.
My bank provided me with a lot of 2Euro chocolates.
I dont know what were the costs, but great memories.
Are video topic polls First Past the Post or STV?
I am not an economist, but I feel like a common currency is better for everyone.
The best way I can explain it is with virtual currencies that are always 5euro=2650virtual let's say. It makes it uneccesarelly difficult to trade, to exchange and to basically understand what your money is worth somewhere else. Only exchange spots may find it a bad idea.
I think that Euro works very well for the stronger economies and not so well for the weaker ones. Some economists disagree ... but some agree (e.g. Piketty, Varoufakis, Walters, Marsh, Stiglitz, Mody, ...)
Actually it should be the other way around. Germany was incredibly reluctant to join, the only reason they did eventually go along with it was because France told them they'd support German reunification if Germany stopped blocking a single currency.
@@DaDunge Cannot disagree with you about the past but the EU & the Eurozone has changed since then.
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I find the arguments from below sources more convincing (and it is because of the content of the arguments, not the authority of the sources):
- Joseph Stiglitz (Nobel Prize in Economy) and his book "The Euro: How a Common Currency Threatens the Future of Europe"
- Yanis Varoufakis - check out his lecture from Oxford Union on yt ("The Euro Has Never Been More Problematic"). And forgive Yanis being sometimes too emotional... poor lad was the Minister of Finance in Greece during the crisis.
Economics is NOT an exact science and pretty much influenced by those who fund its professors.
I just wish Hungary would finally consider joining in
First step, get rid of Orban and other nationalist populists who use the EU-blaming to cover their own inabilities!
I lived in Hungary for a while and those thousands of money were fun.
Hungary and Poland will probably join once their authoritarian and Eurosceptic governments are voted out. Support for the Euro is high in Hungary and Poland but their governments like having someone else to blame when something goes wrong, so they stick it to the EU. When those governments are gone chances are they will move towards adopting the Euro
It won't. The government is on a devaluation course against the euro and dollar. They themselves make money by devaluing the forints and also they believe that the country can remain competitive only if workers get a handful of peanuts as salary and exporters can make a huge money on exchange rates
@@noahbowie5985 Im Polish and no
No one wants euro.
creating a single currency creates deliema of caculating costs of goods and services in 27 counteries,a item produced in france is different because of demand &methods
I am an economist in the comments section. The main advantage of a single currency is that it faciliates trade and arbitrage, hopefully leading to growth. The main disadvantage is that it removes one of the central macroeconomic tools (monetary and exchange rate policies), thereby limiting central banks' ability to deal with crises. This problem can be mitigated by allowing adjustments to happen in other markets like labour or capital. For example, the Greek crisis could have been resolved far more quickly if more Greeks had just moved to Germany. In the USA, regional crises are often resolved by having people just kinda leave the area ("striking out for the west", as it were).
Most economists agree that the current euro-zone is too big. That doesn't mean that any specific country wouldn't benefit from either joining or leaving. That also doesn't mean that shrinking/abolishing the euro is the best option. The concensus appears to be that further integration is the best approach. For example, migration away from crisis-striken areas could be encouraged by aligning labour laws or an EU-wide common language (wouldn't it be funny if that were English?). Alternatively, fiscal transfers may be necessary (the famous 'fiscal union', although in truth a full union is unnecessary, just a very large fund).
It wouldn't be funny if it would be english, it would be the logical choice, especially now that the UK left.
@@MDP1702 too bad, the english is here to stay
@@didip1000 You do realize my comment is in favor of english as a common language?
The videos on this channel would have been handy 5 years ago.
I want a video on pros and cons!
I see some of the people here think when a country adopts Euro you will earn more only because of it. You won't. Look up how much Lithuanians "love" E currency or learn Greece problems because of Euro.
The problems of Greece were/are because Greek politicians. They cheated to enter in the Eurozone and now they reap their deserved punishment. In the end it will be better for them.
Lithuanians actually like Euro. Life quality has improved very much after adopting Euro.
Please make a video about having a common EU army and/or how to guard borders of the EU?
As an economist, I do like the EURO. Best thing ever happened.
where is the map at 10:53 from?
i wanna use it in a paper but can't seem to find it
Hi i hope you could have video about schengen explain
Thanks
Could I get your source for national Euro approval ratings?
I've lived in Spain for 14 years, and the population never stops lamenting the price hikes associated with the adoption of the Euro.
Basically one Euro was valued at 160 pesetas, but commerce seemingly went for a "simpler" conversion of 100 pesetas to 1.00€ so prices skyrocketted over night and never came back down.
85% approval is a surprise to me.
Go ask the Spanish if they would give up the EURO for Pesetas again... They will call you a moron for even considering it.
There's a difference between complaining about prices (which is universal, just like you do with the weather), and the actual return to the national currency - which most people realise is "not a good idea"(TM) at this point.
Coppenhagen criteria are not concerned with economy, but rule of law, democracy and stable market economy
From an economic standpoint, the euro is and was a good idea with only one caveat. That a decent fiscal Union or fiscal equalisation program is in place between member states, otherwise you’d have the Greek, Italian and Spanish Debt crises all over again from Surplus nations like Germany over lending to deficit nations like Greece chasing higher interest rate returns
The Euro is amazing on multiple levels, but it requires both a leap of faith and more attachment to our European identity than our national one.
After, once you bridge the gap, you have to get accustomed to it especially with exchange and pricing. Beyond that point, having a single currency, improves trading ability across the continent as conversions and value exchange does not become an issue anymore. Even internationally outside the EU, it increases trading powers as other nations don’t deal with with individual states but with the EU as a whole. The dollar and Pound would be a lot less valuable (not powerful) if it only worked in one member state with others having their own. It complicates trading and with whom you trade (selecting the proper entry point in that united economy is difficult).
Again, there is a lot more to it though not without some obvious drawbacks related to a linked monetary system. However, at least for Europe, this has definitely allowed our countries to rise significantly in monetary power worldwide.
Well, in varietate concordia
Simon K Definitely and I also think a UK with Euro would not have let Brexit happen. It is now more important than anything that we facilitate the tradition of all current and future members of the EU towards the Euro.
The Euro is a convenience but the politics and economics do not even begin to work. Make the most of it.
1) if you use the Deutschemark as currency and then the Deutschemark is replaced i think every country that used a the mark should be listed as an official user of the euro
2) The way Inflation is calculated is not fair - it should put more weight on the basic expenses like rent or food because those aspects are almost always above the 2% mark but are in contrary to f. example flight tickets something everyone has to pay
Back in the pre-€ 1970s we lived in Germany near the French border. One Sunday our father drove us across the border for lunch. On the way home my sister has to go to the toilet urgently. Our parents didn't have enough French coins to put in the door of the toilet stall, so my poor sister had to crawl under the tiny opening on a nasty floor to get in. If we'd had the € back then, her dignity (and hygiene) would have been saved.
It wasn’t created for peoples convenience it was created for Germany’s exports
"Eurozone countries must aim to keep their nation's debt to less than 60% of GDP."
The US with a 123% Debt-to-GDP ratio: that's cute.
Switching from currency to currency when going from a country to another one is kinda getting annoying to me to do that all the time
7:48 Poor choice of words.
...unless you're saying it was actually worthless at the time
what if it was actually worth less ?
@@aresgood1 Worth less, worthless, or worth less than worthless?
Actually I’m not an economist, please tell me more about the pros and cons of the Euro (I can see only pros).
You can't edit fiscal policy without multiple countries moaning to your government
*Brits come in. Start to give out about the Euro.
Lol
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I love the Euro ! As an EU-citizen I think that it is very useful and it saves a lot of time at the borders. Businesses don't need to exchange currencies anymore. And also for tourists it's great ! One of the major con's is that if one economy doesn't do well (Greece) the other ones will have to pay for it and that's slows down growth and investments across Europe, but in the US it's a bit the same. If Colorado doesn't do very well and California pays for it, it slows down growth and investments across California. So in the end I'm still a big fan of the Euro, even though it's not perfect
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Not exactly related to the Euro but can somebody answer a hypothetical for me. What happens when UK regulation is stricter than EU law? Say for example building cladding in the wake of Grenfell. While we are in the single market could a company simply ignore the UK law by sourcing an EU product which is allowed to move freely into this country and is automatically legal?
I think we can all agree that the Euro was not a very bad idea and also not a very good idea. It causesd a lot of dicciculties because economically different countries have to share a single monetary policy now, but at the same time it brought these countries closer together and created a lot of wealth and growth for europe. Some places even take the Euro as standard for international ressource trade over the US Dollar, at least before the US bombs them back in Line.
Im not an economist, I'd appreciate the video :)
5:37 I guess Greece didn't get this memo.
Dude, you showed West Germany with the East German flag on it.
I'm Dutch and I'm for the Euro, my girlfriend is Danish and they of course don't use the euro. I thought this was because their Kroner is tied to the currency of Sweden en Norway, but it's not. The Danish kroner is the only currency that is tied to the euro. So I don't get why they just don't suck up their pride and get the euro, because they're practically using it already.
As a Dane, I frankly don't understand my countrymen's reluctance to adopt the Euro either.
I'm Danish, and I agree - since the Krone is tied to the Euro, we might as well take the full step - we would have Queen Margrethe on the coins, so what is the big deal? ;) It's as you say, a matter of national pride to many, particularly to those who don't travel much and don't trade much with the world outside...
Fun fact: the Danish/Swedish/Norwegian krone/krona was introduced in 1871 with exactly the same purpose as the Euro: a monetary union, making exchange fees unnecessary and making life easier. It later evolved into the national currencies known today, but the original purpose stands. Funnily enough, a lot of Danes think that we have had the krone for centuries...
The German mark is also tied to the Euro in ratio 2:1, and the Bulgarian lev is tied to the German mark in ratio 1:1.
Dane here. We have voted no to adopting the euro in several referenda, which is why it has not been adopted. Tying the krone to the euro was never voted on, and was instituted by politicians separate from any popular will. While I don't know the exact thoughts behind it, my impression is that the politicians wanted the euro and took this as the next best thing when it got voted down.
Personally, I think it's about time for another referendum on the matter. It's been two decades since the last one, and a second one got postponed when the financial crisis hit. That said the krone is generally quite popular here, so there's no guarantee the referendum would succeed. We have a lot of national pride, and I suppose the krone is tied to that.
@@jonasstolberg2802
Seriøst, jeg tror jeg flipper skråt hvis DF'erne sætter en stopper for Euroen igen.
Har de ikke gjort nok landsskadelige ting, med deres modstand imod Europol samarbejdet?
Can you shed any light on why 8 EU countries are still not part of the eurozone? Given Brexit, I would have thought the EU would be welcoming as many as they can to join the 'secondary' club? I recall Croatia were keen, if not desperate, to push this through being the latest addition to the 'primary' club but it all seems to have grinded to a halt...
Thanks
I certainly don't live in a country with the euro. If it wasn't for brexit, however, I would definatly support the UK joining. It seems to me that people have an emotional attachment to their respecive currency, and that is why places that don't use the euro don't seem to like it.
Does your country have true democracy, if your money is controlled by globalists?
While i do like the convenience of having the same currency across many european nations, i am still very much against a common currency without a common fiscal policy.
On the history side of things, germany would never have agreed to the Euro, they were basically strong armed into it by the french as it was a prerequisite from them for the 2+4 talks that gave germany its sovereignty back and allowed german reunification. To put it another way: Without agreeing to the Euro the french would have made it impossible to reunify germany. As one of the four official axis forces they could have done it. The demand by Kohl to join the stability act was simply the bare minimum to placate the german population enough.
By the way, the AfD is a direct result of the Euro, it was born as a single issue party to oppose the Euro and try to get germany to leave the monetary union, but not the EU. The original leader-circle has been out of the party for a long time, they were, as professors of economy, simply politically stupid in their attempt by fishing at the far right corner to get enough votes to get in some state parliaments. Well, of course the far right fringe took over the party and had a resounding success in the general population. After all, around a quarter of the country is still very much in favor of fascism.
Wrong side won. If you know the true story, you will agree.
In lithuania we had "litas" but now we have euro how we call "euras"
Czechia doesn’t want Euro just because populist in our country made from it something bad… but the population who usually travel or live near German/Austrian or Slovak border want it as our head economists… because it’s just make living in Europe better!
Thank you for a nice and informative video. However, since Sweden did not opt-out from the euro, the Swedish referendum does not have any legal relevance (not even under Swedish law since the euro-referendum was non-binding) and Sweden should therefore technically be listed together with the Czech republic, Hungary and Poland as a country that should work towards joining the euro. Also, even though Denmark opted-out from the euro, the Danish kroner (DKK) joined ERM II on 1 January 1999, and observes a central rate of 7.46038 to the euro with a narrow fluctuation band of ±2.25%. Since the DKK is the only currency included in the ERM II, and since the fluctuation band is _significantly_ less than for other non-euro currencies (±15%), I would argue that such a fundamentally different relationship towards the euro should not have been lumped together with the British pound, that does not have any such ties.
The Swedish government has enough problems on its hands without having to think about trying to sell the idea of joining the Euro. Confidence is at an all time low.
The case of Sweden is not an opt-out but a loophole, Sweden have to join the Euro when all requirements are fulfilled (and there is no time limit for this). Sweden does fullfil all the financial performance criterias but not the technical criteria of joining ERM II. And even if this is a loophole and not an opt-out it is not available for the other countries.
@@henrybn14ar As a Swede I would wonder what those problems are?
latest poll (SCB, May 2021): Should Sweden join the Euro/EMU? YES - 20,4% NO - 63,2% Undecided - 16,5%
Looks like Bulgaria is pushed to January 2024
Sadly we have to delay it to 1st January, 2025 😔
It's an amazing concept, but needs some more framework to address certain problems. More in that pros and cons video. ;)
Make a video about '' Why England, Sweden and Denmark'' said no to Euro.
how the fuck did you pronounce Mitterrand?
According to international monetary economics we are not an optimal currency area (OCA) and we lose more than we gain according to it. But it doesn't mean that we cannot be in the future. If we cooperate and put our stupid differences and egos aside. The euro can outperform single currencies enormously. Right now it isn't really.
The Euro is fine, but not for as many countries as are in it. The problems of many European countries are mainly caused by not being able to devalue their currency to suit their economic performance. The inability of the UK to stay in the preliminary stages of joining the Euro should have been a warning. But if you can live with it, its's great and convenient. Brian Nederland
tl;dr: It's fucking complicated
I think Poland doesn't want to adopt the euro exactly for exports lol I can't say I was trying to find sources, but every now and then there's a hooplah about exports and it stands to reason the govt really cares about their apple and berry exports.
So yeah. Probably not gonna happen for years if ever lol
What's good for exports is bad for the imports, and Poland has a negative trade balance.
ChristianIce Yep, and I hate it so very much, living here and all
I'm here looking for economists.
Please hire an economist. I'm sick of the excuses.
I'm not an economist, but John Nash was and the Euro is the closest thing to his idea money that the world has.
I'm very curious about that, can you explain it please?
I think it was a good idea but I think more political integration is needed for the Euro to work more effectively and the irony is, I suspect that was the intention, political integration isn't easy but bringing the Euro in which puts more pressure on all those governments to integrate more so the currency works more effective for them all, hence why I think it's only a matter of time that more integration will happen for the Euro Zone countries.
This pandemic might actually speed up the process of that in ways we can't really see at the moment so the next decade is going to be very interesting.
As a Brit living in the UK, it's a shame the UK didn't join the Euro because Brexit might not be happening now but on the plus side, polls are showing that 57% of Brits want to rejoin the EU and that percentage seems to be going up, at this rate and if the UK does rejoin the EU, the Euro will be part of the package.