In 1999 the E.U. (European Union) declared that 17 countries in the E.U. would unite currencies. Thereby creating a sort of quasi-free-trade agreement. Since it was same currency, currency exchange tarriffs between countries in Euriope would subside and trade can be conducted relatively tax free. The Euro is the second largest reserve currency and the second largest traded currency, both right behind the US dollar. As of September 2012[update], with more than €915 billion in circulation, the euro has the highest combined value of banknotes and coins in circulation in the world, having surpassed the US dollar. The Euro headquarters are located in Frankfurt, Germany; the ECB (European Central Bank) handles all policymaking, printing, and regulating for the currency.
As of the current recession the Euro has recievd criticism. And the subsequent crisis of the Euro and countries defaulting and having to be bailed out, only making the problem worse. The issue is you have diferent countries, all with different budgets and policies using the same currency. This means what one country does with the Euro directly effects everyone else using the currency. So. should the Euro be disbanded? At this point in time almost every country owes another country a copious amount of money. Made only worse through expanding budgets and inflation, a result of printing more money. Governments are increasing taxes to compensate for their growing budgets. Disbanding the Euro would basically throw all the debt in the air and you would have to either pay it off imediately or default.
In my opinion, the Euro must have sounded like a great idea on paper. Only once it was implemented did you see its obvious flaws. A universal currency only works if the people using the currency are all from the same country. That way it's one budeget, one policy, one currency. I'll use Greece as an example: Greece basically had a budget way above their actual income. Therefore as a result of their excessive spending they go bankrupt. Now this isnt the case. Bankruptcy is not an option since Greece going bankrupt would mean that every other country in the Euro would have to go bankrupt as well. Ideally, Greece should have been cut loose and allowed to declare bankruptcy. However such is not the case, to prevent them from going bankrupt and ruining everyone else in the Euro they received a bailout from the only country with enough capital to power the Euro and keep it all together, Germany. This process has now been done multiple times to a number of countries. This solution only delays the inevitable and makes the situation worse, since Greece is now expected to pay back the bailout to Germany when there is no realistic way of them ever making enough funds to pay it back. So the debt grows. So in my opinion the solution is to either disband the Euro and allow each country that defaults to declare bankruptcy therefore alowing them to start from scratch. Or of course you could just unify all the countries into one.
