European Economic and Social Committee

PRESS RELEASE No 51/2008 / 2 June 2008

European Economic and Social Committee

EESC assesses advantages of the Euro: more integrated economic and social policies and better information needed to improve public perception

On 29 May 2008 the European Economic and Social Committee (EESC) adopted an opinion "Advantages and benefits of the euro: time for assessment" commemorating the 10th anniversary of the European Economic and Monetary Union. The Rapporteur Mr. Burani (Group I, Employers, Italy) considers that after eight years in the hands of more than 300 million Europeans the euro is "an unqualified success". The opinion tries to understand why the Euro is still criticised by parts the public, search for the reasons and, where possible, propose solutions.

The Euro requires more and better coordination of economic policies, additional integration in finance, further tax harmonisation and an enhanced internal market.

In addition, the EESC underlines that a communication strategy should be implemented in such a way as to take into account the differing national and social priorities of the target publics (e.g. perceptions differ widely between the social strata and between different levels of education). The euro communication strategy needs to be seen as part of a long-term, broad-based policy.

Another main priority for ensuring greater acceptance of the euro would therefore be economic and social policies in the EU to support employment and incomes while providing appropriate social protection systems.

During the elaboration of this opinion a high-level conference on "Advantages and Benefits of the Euro: Time for assessment" has been organised on 14-15 April 2008 with the participation of main EU institutions and organisations of civil society (see press release n° 32/2008: http://eesc.europa.eu/activities/press/cp/index_en.asp)

Main advantages of the Euro

The euro is the main contributor to European identity: it has become the symbol of this identity, of shared values and successful integration, and fosters a feeling of belonging to a “strong” entity within the EU. The euro has contributed to transparency and has facilitated comparison of prices of goods and services, salaries and social-security contributions. This comparison has enabled people to make the most appropriate purchase choices, strengthening competition and, as a general rule, helping to keep prices in the euro zone down.

The euro has eliminated exchange risks and currency transactions costs in trade within the euro zone, and, to some extent, with other countries both within and outside Europe. The fact that there are no longer risks of fluctuation has thus made trade relations more stable for businesses in the euro zone. One of the benefits which is most immediately obvious to the public is that it makes travelling easier: the euro removes exchange costs, facilitates payments and simplifies changes of location.

The single currency protects Europe from external shocks such as rises in oil prices or turbulent exchange markets. The euro helps to moderate inflation and exchange rates, encouraging businesses to invest.

There is no doubt about the Euro's international role. The single currency quickly became an international currency which was an established part of the capital market and, to some extent, a reserve currency. A strong currency has benefits for some and disadvantages for others, but the important thing is the assessment of its net benefit to the economy: an undoubted advantage of the euro

However, in many countries price increases coincided exactly with the introduction of the euro. Hence the public feeling that the price increases were generated by the euro, a feeling which still remains and is becoming more ingrained. In July, the EESC will adopt an opinion examining more specifically the reasons for the difference between perceived inflation and actual inflation.

For more details, please contact:
Karel Govaert at the EESC Press Office,
99 rue Belliard, B-1040 Brussels
Tel.: +32 2 546 9396/9586; Mobile: +32 475 75 32 02
Email:
Website: http://www.eesc.europa.eu/
Press Releases:
http://www.eesc.europa.eu/activities/press/cp/index_en.asp (English)
http://www.eesc.europa.eu/activities/press/cp/index_fr.asp (French)
The European Economic and Social Committee represents the various economic and social components of organised civil society. It is an institutional consultative body established by the 1957 Treaty of Rome. Its consultative role enables its members, and hence the organisations they represent, to participate in the Community decision-making process. The Committee has 344 members, who are appointed by the Council of Ministers.