Friday, April 8, 2011

Challenge number 15

This week you will have to research on the European Union currency. These are the questions:


What was the name of the previous European Union currency? When was the name "euro" officially adopted as the official currency of the European Union?


What´s the eurozone? What EU countries are included in the eurozone?


What other countries use the euro as official currency?


What are the requirements the EU countries have to meet if they want to adopt the euro as currency?


What institution is in charge of the eurozone´s monetary policy? Where is its headquarters located?


The Eurogroup (the group formed by the finance ministers of the eurozone) has recently approved bailouts to solve the economic problems of the financial systems of three countries whose currency is the euro. Which are these countries? What is the amount of the bailout they have received (or will receive)?


Ángel Aranda said...

Hello everybody, this week i will try to do the challenge:

Question 1: The first name of the EU was European Economic Community.
The name €uro was adopted in 1995

Question 2 and 3: The eurozone is place where the €uro is the official coin.
At the moment there 17 countries included in the €uro zone they are:

Question 4: The requirementa to adopt the euro are:
-The country must have stable institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities.
-The country must have a functioning market economy and must be capable of withstanding the pressure of competition and market forces in the European Union.
-The country must be able to assume all the obligations flowing from membership, including the aim of political, economic and monetary union
-What comes closest to a catalogue of concrete requirements which must be met by applicant countries is the third criterion, according to which the countries must be in a position to implement all the EU’s laws and regulations.
Question 5: It is the ECB (European comission bank) in Frankfurt(Germany)
Question 6: The countries with problems are>
They give 8 million euros

Enrique Vázquez said...

Hello Paqui
The previous E. currency was called the European Currency Unit (ECU), this was remplaced by the euro in the 1 of January on the 1999.
Th eeurozone is the group of countries that have the common European Currency: the euro. Noeadays it's formed by 17 E. members:
Austria, Spain, Slovenia, Portugal, th Netherlands, Malta, Luxembourg, Italy, Ireland, Greece, Germany, France, Estonia, Cyprus, Belgium and Finland.
They are Monaco, San Marino, the Vatican City and 3 more countries: Kosovo and Montenegro. Andorra is actually negotiating an agreement with the EU.
The five conditions are based on determining:

If there is sufficient convergence with the eurozone economies.

If they are flexible enough to cope with the economic changes.

The effect on investment.

The impact on the financial services industry.

If this will be good for the job Creation.
The ECB is the central bank for Europe's single currency, the euro. The ECB’s main task is to maintain the euro's purchasing power and thus price stability in the euro area. The euro area comprises the 17 European Union countries that have introduced the euro since 1999. It's located in Franckfurt.
This countries are Portugal and Irland, Portugal will ricive 75.000 millions and Irland ricieved 67, 500 millions. Greece have also recieved 146.000 millions of dolars.

Bye Paqui.

Javier Alberca said...

Hello everybody!!
The previous name was ECU (European Currency Unit). They changed its name in Madrid, on the 15th December 1995.

It's called Eurozone to all the countries that have adopted Euro as their official currency, including the countries that don't belong to the European Union but they use the Euro. It's formed by Alemania, Austria, Bélgica, Chipre, Eslovaquia, Eslovenia, España, Estonia, Finlandia, Francia, Grecia,Irlanda, Italia, Malta, Luxemburgo, Países Bajos y Portugal.

Andorra, Ciudad del Vaticano, Kosovo, Montenegro, Mónaco y San Marino.

1. Inflation rates: No more than 1.5 percentage points higher than the average of the three best performing member states of the EU.

2. Government finance: The ratio of the annual government deficit must not exceed 3%.
And the ratio of gross government debt to GDP must not exceed 60%

3.Exchange rate: Applicant countries should have joined the exchange-rate mechanism under the EMS.

4.The nominal long-term interest rate must not be more than 2% points higher than in the three lowest inflation member states.

The institution in charge of the eurozone´s monetary policy is the ECB, in Frankfurt, Germany.

The countries are Ireland, Greece and Portugal.
Ireland received 85,000 millions euros.
Greece received 110,000 millions euros.
Portugal will receive at least 75,000 millions euros.


Paqui Pérez Fons said...

Javi, the names of the countries should be written in English. Your answers are more complete. Only the bailout that Portugal will receive is wrong. Last Friday they decided to give them 80,000 million euros.

Javier Alberca said...

Sorry Paqui, I really didn't realize about that. I sometimes mix English and Spanish.