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The eurozone, which stands for
European Union
Membership in the use of EU unity
currency
-
Euro
The country region. On January 1, 1999, the EU countries began to adopt a single currency, the euro, and implement unification in the countries that have adopted the euro
Monetary policy
.
[1]
In July 2002, the euro became the only legal currency in the eurozone. The eurozone has 20 member states, including
Germany
,
France
,
Italy
,
Netherlands
,
Belgium
,
Luxembourg
,
Ireland
,
Spain
,
Portugal
,
Austria
,
Finland
,
Republic of Lithuania
,
Latvia
,
Estonia
,
Slovakia
,
Slovenia
,
Greece
,
Malta
,
Cyprus
,
Croatia
With a population of more than 330 million. by
European debt crisis
As a result, the eurozone economy has been Mired since 2008
Persistent decline
. On October 8, 2012,
European Stability mechanism
(ESM) to the debt-ridden eurozone
Sovereign state
Provide loans.
[6]
- Chinese name
- euroland
- Foreign name
- Eurozone
- Population number
- 330 million people
- Major country
- Germany, France, Italy, Spain, Portugal, the Netherlands and other 20 countries [6]
- Enabled time
- January 1, 1999
In 1992, the European Union summit was held
Netherlands
Maastricht
Signed the"
Treaties of the European Union
The implementation of the single currency, the euro, on 1 January 1999 and the implementation of unification in the countries that have adopted the euro
Monetary policy
. Since January 1, 2002, euro notes and coins have been in circulation, but EU member states such as the United Kingdom,
Sweden
and
Denmark
Decided not to join the euro for now. On January 1, 2007,
Slovenia
Join the euro. On January 1, 2008,
Malta
and
Cyprus
(excluding
Northern Cyprus
) Officially join the euro. On January 1, 2009,
Slovakia
Officially join the euro. On January 1, 2011,
Estonia
Officially join the euro. On January 1, 2014,
Latvia
Officially become a member of the eurozone. On 1 January 2015, Lithuania officially became a member of the Eurozone.
Euro coin
On January 1, 2001, Greece joined the eurozone. Slovenia joined the eurozone on 1 January 2007. On 1 January 2008, Cyprus and Malta joined the eurozone. Slovakia joined the eurozone on 1 January 2009. Estonia joined the eurozone on 1 January 2011. On January 1, 2014,
Latvia
Officially become a member of the eurozone. On 1 January 2015, Lithuania officially became a member of the Eurozone. The eurozone has grown from 11 members to 19 in 2015.
euroland
In the early hours of November 2, 2011, according to relevant media reports, due to the government
Debt crisis
Greece, a eurozone member, intends to hold it
referendum
To decide whether to leave the euro.
On July 9, 2013, the Ministers of Economy and Finance of the 27 member States of the European Union officially approved Latvia's accession to the euro area on January 1, 2014.
Latvia officially became the 18th member of the Eurozone on 1 January 2014. 1 euro is exchanged for 0.702804 Latvian currency lats. The euro currency was introduced in Latvia in January 2014.
On July 23, 2014, the Council of Finance Ministers of the European Union adopted a decision to allow Lithuania to join the euro area and adopt the euro as its national currency from January 1, 2015. Lithuania thus became the 19th member of the eurozone.
Council of the EU
The resolution stipulates that the transition period of Lithuania to the euro will be five months, and the exchange rate of the Lithuanian currency to the euro will be 3.4528 litas to 1 euro.
On June 1, 2022, the European Commission said that Croatia is ready to join the euro zone from January 1, 2023, which will increase the number of eurozone countries to 20.
[4]
On July 12, 2022, the European Central Bank issued a notice, and the Council of the European Union officially approved Croatia's accession to the euro area on January 1, 2023.
[5]
On 1 January 2023, Croatia joined the euro
[6]
; After joining the euro area, the kuna in a resident's bank account is automatically converted into euros at the exchange rate of EUR and kuna 1:7.5345; In the same year, the Croatian kuna officially ceased circulation at midnight on January 15.
[7]
To join the eurozone, EU member states must meet the following criteria:
First, the annual government of each member state
Fiscal deficit
Be controlled in
Gross domestic product
Less than 3%; Second, the national debt must remain below 60 per cent of gross domestic product or fast approaching it. Third, in
Price stability
In terms of Member States
Inflation rate
≤ the inflation rate of the three best member countries in the previous year +1.5%; Fourth, long-term
Nominal annual interest rate
(To the long-term government
Bond interest rate
No more than the average of the three countries with the best inflation performance
Long-term interest rate
2 percentage points; Fifth, the currency must remain within the normal range of fluctuations of the European monetary system for at least two years. The EU has no fixed requirements for member states to join the eurozone, and each member state will follow its own rules according to its own national situation
timetable
Join.
Euro convergence criteria
(convergence criteria)
In 1998, the 11 member states of the European Union adopted the"
Euro
The "convergence criteria" stipulates that EU member states must meet the following four convergence criteria in order to join the eurozone. On January 1, 1999, the euro zone was established.
Price stability criteria: the country's inflation rate does not exceed 1.5% of the previous year's inflation rate of the three best member countries;
Public finance
Criteria: The country's annual government fiscal deficit is controlled below 3% of gross domestic product;
Exchange rate criteria: the national currency must remain within the normal range of fluctuations of the European monetary system for at least two years;
National debt criteria: The country's national debt must remain below 60% of gross domestic product or be rapidly approaching that level.
[3]
Member state
Eurozone downturn
|
nation
|
Join date
|
|
Germany
|
January 1, 1999
|
|
France
|
January 1, 1999
|
|
Italy
|
January 1, 1999
|
|
Netherlands
|
January 1, 1999
|
|
Belgium
|
January 1, 1999
|
|
Luxembourg
|
January 1, 1999
|
|
Ireland
|
January 1, 1999
|
|
Austria
|
January 1, 1999
|
|
Finland
|
January 1, 1999
|
|
Spain
|
January 1, 1999
|
|
Portugal
|
January 1, 1999
|
|
Greece
|
January 1, 2001
|
|
Slovenia
|
January 1, 2007
|
|
Malta
|
January 1, 2008
|
|
Cyprus
|
January 1, 2008
|
|
Slovakia
|
January 1, 2009
|
|
Estonia
|
January 1, 2011
|
|
Latvia
|
January 1, 2014
|
|
Republic of Lithuania
|
January 1, 2015
|
|
Croatia
[6]
|
January 1, 2023
|
Countries about to join the eurozone
None
[6]
Non-eurozone EU countries
Denmark held a referendum in 2002 on whether to join the euro
referendum
The Danes chose not to join the euro. with
Sweden
The difference is,
Danish krone
The exchange rate is pegged to the euro.
Although Sweden has not formally opted out of the Economic and Monetary Union (EMU III), as Denmark has, it must, in theory, do
Time conversion
For euros. However, in a referendum held in Sweden on 14 September 2003 on whether Sweden should join the euro, a majority of Swedish citizens voted yes
Dissenting vote
. Sweden thus became the second country, after Denmark, to decide not to join the euro.
The eurozone economy in the third and fourth quarters
In September 2012, the Economic Sensitivity index, which shows the level of optimism of euro area producers and consumers about the economic outlook, fell 1.1 points from the previous month to 85.0 points. The economic sensitivity index for the European Union fell 0.9 points to 86.1.
The main reason for the continued decline in economic confidence in the euro area and the European Union was "the continued decline in business confidence in the services and retail sectors, as well as among consumers."
Specifically, the eurozone
Confidence index
The sector with the biggest decline was retail, down 1.4 points; The industrial and service sectors fell 0.7 and 1.2 points, respectively. The biggest drop in EU confidence was also in the retail sector, down 1.8 points; Services fell 1.2 points, while industries rose 0.1 points. However, construction confidence rebounded in both the euro area and the EU, rising 1.2 and 1.6 points respectively.
Meanwhile, the eurozone and the European Union
Consumer confidence index
Both fell 1.3 points, reflecting consumers' expectations about the future
Economic situation
,
Household income
And savings are even gloomier. Eurostat latest
Data display
, the eurozone and the European Union in July
Unemployment rate
That's 11.3% and 10.4%, respectively.
In the main
economy
Germany, France and the euro zone's top three economies
Italy
The confidence index fell 1.1, 1.6 and 0.1 points, respectively.
by
European debt crisis
As a result, the eurozone economy has been Mired since 2008
Persistent decline
. 5 October 2012, France, Germany and Italy
Statistical agency
The latest economic situation research report shows that the eurozone economy will continue to recession until the fourth quarter of 2012, and the recession will return to zero growth in the first quarter of 2013.
Uncertainty and fiscal consolidation have led the eurozone
Domestic demand
Big drop. Here
Personal consumption
Bring about
Negative impact
,
Household purchasing power
because
Fiscal austerity
, rising inflation and
Employment situation
Deteriorate and weaken,
Investment in fixed assets
Will continue to decrease until the first quarter of 2013.
On October 8, 2012, the amount reached 500 billion euros, as agreed by the previous eurozone finance ministers
permanence
Rescue fund
European Stability mechanism
The official launch of the ESM, which will be used to finance the debt-ridden eurozone
Sovereign state
Provide rescue loans to help investors who have lost trust
National economy
Back on track.
Forms of relief include
Primary and secondary market
Buying bonds, becoming a member of the eurozone
Sovereign bond
Provide guarantees, etc. The above countries are
Open market
Financing cost
It is expensive, and through this mechanism, money can be obtained at a lower interest rate. At the same time, recipient countries must strictly abide by certain restrictions in order to obtain loans, such as commitments
macroeconomy
Adjustment plan
And fiscal austerity.
The ESM is split into two tranches, €80 billion of equity capital and €620 billion of callable capital, for a total of €700 billion (including those that cannot be lent)
Capital buffer
).
The first tranche of €32bn of equity capital will be put in place in October 2011, giving the ESM immediate access to about €200bn
Financing capacity
; The remaining equity capital will be disbursed in two installments until the first half of 2014, when the institution's borrowing capacity will reach a ceiling of €500bn.
When the European Stability Mechanism (ESM) is activated, its first task will be to assist Spain
Banking industry
Recapitalize. On account of
Real estate market
The Spanish banking sector was hit hard. The rescue package is from the ESM
The European Financial Stability Facility
The tasks taken over by the EFSF, a temporary assistance mechanism, will be replaced by the ESM. In 2011 Spain has become
Investor concern
The focus of...
An independent assessment of Spain's banks said they would need almost €60bn in capital in a worst-case scenario. But Spanish officials say only about 40 billion euros will be needed because some of the required capital will be available privately or through a restructuring of the banking sector.
But while Spain is widely expected to ask for an EU bailout soon, one euro zone official said it would not happen immediately, if at all.
Prime Minister of Spain
Rajoy also said he had no plans to ask for a bailout in 2011.
Olli Rehn, the European commissioner responsible for economic and monetary affairs, said yesterday that the euro zone must continue to implement prudent fiscal austerity measures while implementing far-reaching measures
Structural reform
These measures have helped to rebalance the eurozone economy and restore market confidence.
Analysts believe that Rehn's comments indicate the EU's attitude towards the future course of eurozone reform.
Rehn pointed out that the progress of the euro zone is obvious, member states
Current account
Red ink
There has been a significant reduction, and some member states are gradually regaining the competitiveness they lost over the past decade. Such as
Ireland
Successful return
Bond market
In September Spain became private for the first time in 15 months
Net inflow of funds
Italy's 10-year bond auction yield reached its lowest level since 2010. All this points to the need for continued fiscal consolidation and reform in the eurozone.
Rehn said Europe must continue to exclude
Structural obstacle
To achieve the economy
Sustainable growth
"We must continue to remove structural obstacles to sustainable growth and employment and pursue prudent fiscal consolidation." The eurozone must stick to its current course, with firm reforms and austerity measures within member states and deeper integration within the euro area.
The eurozone is set to bail out Greece
Although Greece
Bond repurchase
Cost more than expected, eurozone
Finance minister
The release of 49.1 billion euros in bailout loans to Greece was still approved on Thursday, with 34.4 billion euros to be disbursed in the coming days and the rest in the first quarter of 2012.
The Greek government on Wednesday announced plans to bail out the country's banks
Private investor
Buy back 31.9 billion euros of government bonds, which will allow Greece
Government debt
A reduction of more than 20 billion euros. The success in meeting the bond buyback target allowed Greece to satisfy the eurozone
Temporary relief
So, too, is the demand that the European Financial Stability Facility (EFSF), the fund, disburse aid to Greece
The International Monetary Fund
(IMF) on the premise of disbursement.
Eurogroup
President Jean-Claude Juncker said after Thursday's summit that he was confident Greece could get back on track and that the money would be released as early as next week. If necessary, the euro zone will be ready to take additional measures against Greece to help its debt
GDP
The rate will fall to 124% in 2020.
Eurozone finance ministers and the International Monetary Fund (IMF) agreed on the Greek bailout on 27 November 2011. Under the new debt reduction targets, Greece's debt as a percentage of its gross domestic product (GDP) will fall to 175 percent in 2016, 124 percent in 2020 and further below 110 percent in 2022, according to a euro zone statement.
However, Juncker noted that eurozone finance ministers "did not discuss official sector involvement.
Write down
(OSI) ". The first round of debt reduction was approved in March 2011
Private sector
The Participation writedown (PSI) reduced debt by around €100 billion.
Olli Rehn, the European Commissioner for Economic and Monetary Affairs, said: "Today's decision marks the long term for Greece
uncertainty
The bailout money will bring liquidity back to Greece."
IMF Managing Director Christine Lagarde said in a statement on Thursday that she welcomed the Eurogroup's support for Greece
Debt repurchase
And, if necessary, to provide additional assistance to Greece
Debt relief
The guarantee is based on the premise that Greece achieves the basic in 2013
Budget surplus
. Lagarde said: "Based on this, I will recommend to the IMF Executive Board the completion of the first assessment programme for Greece. I expect the board to meet in January 2013."
On June 2, 2013, the eurozone economy showed further signs of deterioration. Unemployment hit a record high, the highest in the region
macro-economy
The body of the
Retail sales
Slide. All this makes it even more unlikely that the euro zone will emerge from recession any time soon.
European Union
Eurostat announced on 31 May 2013 that the eurozone unemployment rate rose to 12.2% in April, in line with market expectations. The April unemployment rate was not only higher than March's 12.1%, but also the highest since 1995
Data recording
Highest level ever. The number of people unemployed in the euro area rose by 95,000 to 19.4 million in April. Analysts expect the eurozone
Number of unemployed
It will hit 20 million later in 2013.
Howard Archer, economist at Global Insight, said the rise in joblessness underlined that the euro zone still faced huge difficulties and faced a tough task to get its economy growing again.
The data also showed the wide differences among the 18 countries that use the euro.
Southern Europe
The increase in state tax revenue and the decrease in fiscal expenditure exacerbated the already severe economic recession, resulting in a sharp rise in unemployment.
-
Evaluation report
-
Financial stability risk
On May 25, 2022, the European Central Bank released the latest Financial Stability Assessment report: The Russia-Ukraine conflict increases financial risks in the euro area. The report argues that the market
vulnerability
It may intensify. Energy sum
Bulk commodity
The price has been fluctuating high, here
Related products
the
derivative
The market puts pressure on. If eurozone growth prospects weaken further or
inflation
Significantly higher than expected, some
Financial assets
There are risks of further adjustments. euroland
Non-financial enterprise
Be facing
Production cost
Rising sum
Economic recovery
The outlook is more bleak for the challenge, which may increase the enterprise
Default risk
, highly indebted companies and
Credit rating
Lower companies may face tougher financing conditions. European Central Bank Vice President de Guindos said that the conflict between Russia and Ukraine almost affected
Economic activity
And various aspects of financing conditions have increased financial stability risks.
[2]
Single currency impact
The adoption of a single currency is thought to improve economic interconnectedness
dependency
And facilitate international trade between euro countries. In theory, this is good for the people of the euro area, and historically increased trade has been one of the main drivers of economic growth. It is also consistent with the long-term goal of creating a single market between the European Union. Another major benefit is the elimination of banking transaction fees. And in the past, both for individuals and businesses, in the country
Currency exchange
This is a significant cost for foreign currencies. On the contrary, banks will suffer a corresponding loss of profits.
Eurozone leaders pose for a group photo before the summit
Some economists argue that having a single currency in such a large and diverse area is harmful. They believe that because of the euro zone's monetary policy and
Interest rate level
At the ECB's discretion, countries will not be able to adjust their economies to their own circumstances.
Public investment
and
Fiscal policy
Will become national or regional
Government intervention
The only means of economy.
The risk of a break-up of the eurozone
There are also arguments that the United States can adopt a single currency because
U.S. dollar
It is the dominant currency in the world. Before the euro, 80% of the world's
Foreign exchange reserve
It's in the form of dollars. This gives
American economy
A huge "subsidy," as reserve dollars amount to investments in US institutions or US-controlled foreign institutions. This "subsidy" helped cushion the impact of the adoption of the single currency in specific parts of the United States.
If the euro can replace the dollar or become a major international currency together with the dollar, then some of the "subsidies" to the United States will be transferred to the eurozone, which can help solve the problem
Economic structure
The difference brings problems.
There is a view that the euro will give Europe
Financial market
Bring huge
volatility
Because governments and companies can now borrow in euros rather than in their own currencies, the sources of funding in the market have grown considerably
The euro and oil
Eurozone heads of state hold a summit
America's deficit economy is heavily dependent on the dollar
Reserve currency
The role of dominance brought about by the security of multiple US debts and deficits. Without the dollar's dominance, the dollar and the U.S. economy could experience the kind of crisis that many Latin American countries experienced in the 1980s. As long as the dollar's position is not threatened, the U.S. economy is not in danger of collapse. European currencies alone are not enough to threaten the dollar's dominance. Some economists believe that the euro is enough to threaten the dominance of the dollar and, under certain circumstances, the United States
Economic collapse
.
With the euro zone likely to slip back into recession, leaders like Mario Draghi and Christine Lagarde are scrambling to come up with a solution to the debt crisis.
malpractice
The use of a single currency in such a large and diverse area is harmful. They argue that because monetary policy and interest rates in the eurozone are set by the European Central Bank, countries will not be able to adjust their economies to their own circumstances. Public investment and fiscal policy will be the only means of government intervention in the economy in each country or region.
Others argue that the euro zone is similar in size and population to the United States, where the Federal Reserve sets interest rates and monetary policy. But American states have less autonomy and more economic similarities than their European counterparts. Moreover, the economies of the EU countries are not "synchronized", with some countries at the bottom of the economic cycle and others at the top, and different countries face different inflationary pressures. Because of linguistic and cultural differences between European countries, labor mobility between the euro zone is also much lower than in the United States.
Not in the eurozone
Trade barrier
. In the same way, if the Asia-Pacific region can be established
Asean (Association of Southeast Asian Nations)
Integration is also a win-win situation for China and ASEAN countries.
First advance
Era of negative interest rates
Announcement by the European Central Bank
Interest rate resolution
The bank had been widely expected to make its first move
Deposit rate
Drop to negative territory. As expected, the ECB will mainly reintroduce
Financing rate
It was reduced by 10 basis points from 0.25% to 0.15%, less than the market expected. Cutting the overnight deposit rate into negative territory means that eurozone commercial banks will pay a "penalty" on the money they park at the ECB.
The European Central Bank also decided on the same day to further enhance liquidity
Monetary policy measures
, including the implementation of a series of orientations valid for about 4 years
Long-term refinancing operations
A total of 400 billion euros of liquidity is expected to be injected into the market; At the same time, the European Central Bank said it would step up preparations for asset support
Securities market
Purchase program, within the framework of which the ECB will be able to buy
Private sector
securitization
Assets.
Negative interest rate
The euro fell sharply against the dollar after the decision, hitting as low as 1.3559, a near four-month low.
Dollar index
It reached 80.77, a new 4-month high.
As for the latest decision, experts say the ECB has not really issued it
Quantitative easing
Initiatives, but one step closer to relevant actions; More stimulus from the European Central Bank is likely.
The United States
Wall Street Journal
2014 was supposed to be the year the eurozone emerged from its debt crisis and returned to growth, bringing confidence and boosting employment. However, this is not the case. Three factors contribute to this situation.
Approval of the Greek reform programme
The eurozone has formally approved a list of reform measures submitted by Greece, which means that Greece's bailout program can be extended for four months. This round of bailout was supposed to expire on February 28, and the agreement is a major setback for Greece's economic situation.
Timely help
". It allows Greece to avoid "running out of money" for the next four months
Bank bankruptcy
And have to leave the euro.
Bailing out Greece
After a 17-hour ordeal
Marathon negotiation
Later,
President of the European Council
On July 13, 2015, Tusk announced that eurozone leaders had reached an agreement on the Greek bailout agreement, which would provide a new round of aid to Greece and prevent it from leaving the eurozone.
Tusk said the agreement reached at the summit of euro zone leaders on Greece would provide reform and financial support for the country.
At a meeting of eurozone leaders on the 13th,
Chancellor of Germany
Angela Merkel
,
President of France
Francois Hollande
President of the European Council
Donald Tusk
and
Prime ministers of Greece
Alexis Tsipras
A solution was proposed
Greek debt crisis
A compromise solution.
Euro zone leaders told near-bankrupt Greece at an emergency summit on Monday that key reforms must be agreed this week to restore trust in the country so they can open financial rescue talks to keep it in the euro zone.
Left-wing Greek Prime Minister Alexis Tsipras was asked to push legislation through parliament to persuade other eurozone partners to release bailout funds immediately
State bankruptcy
And begin negotiations on a third bailout package. This round of salvage
Size estimation
Up to 86 billion euros ($95.5 billion).
Euro zone finance ministers presented a draft decision to their leaders, which includes tax and
pension
Six sweeping measures, including reforms, must be agreed by midnight on Wednesday, and before bailout talks can begin,
Hellenic parliament
Approval of the whole scheme is required.
