How The Euro Came To Be
The Euro is one of the most recent additions to the foreign exchange market. To know how the Euro suddenly came to be would mean understanding Euro history. The concept of the Euro is that it is one currency that can in a way unite many different countries in Europe. In the past each country in Europe had its own currency. This would mean that if you went to visit one country in the summer and again in the winter the exchange rates could have fluctuated. One trip could be extremely cheap whereas the other trip was not such a great bargain. It would all depend on the strength of each country's currency at that time you decided to visit. People began dreaming of having the currency united and having a simpler means that would stop the fluctuations of the different country's currencies.
Important to the Euro history is when Winston Churchill had the idea of creating the "United States of Europe." Of course he did not initiate the idea of having the Euro back then, but his dreams of a "United States of Europe" were because of political reasons only. He hoped that if the countries in Europe were united that it could possibly bring about peace and unity. Since the beginning of the 20th century Europe had been torn apart by war after war. Winston Churchill dreamed of a unified Europe. This is important in the Euro history because the Euro in many ways has unified Europe.
Winston Churchill's dream was the beginning of the Euro history because that's when European countries began looking to see how they could begin to unite Europe. Eventually it is how the Euro came to be. Six west-European countries took a step in Euro history in 1952 when they created the European Coal and Steel Community. The intent of the community was to prevent military conflict between any European countries.
Next in Euros history was in 1957 when the Treaty of Rome was signed. It was a declaration with the goal of creating a common European market. At that time six European countries signed. The next big and very important step in history of the development of the Euro is in 1989. A report was written up and a plan was designed to create one currency for use throughout Europe. This was called the Delors Report. It consisted of a three-stage transition plan and would eventually involve all European countries. These three stages were three steps in forming Euro history. The first stage allowed capital from member states to be moved and transferred without restrictions. Stage two established the European Monetary Institute. It was intended to make preparations to establish a single monetary policy, which involved gaining the cooperation of the System of Central Banks. In 1995 the name "Euro" was elected for the name of the new currency. The third stage established the fixed exchanged rates for the members of the member states. By that time Euro history was no longer history but was a working currency.
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