Essay on Internship Report
2.0 The Establishment of the Euro Zone and the introduction of the Euro
Established in its current form in 1993, the European Union is currently composed of 27 members, out of which 17 nations, namely Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain, comprise the economic and monetary union (EMU) known as the Euro Zone.
To obtain full membership to the Euro Zone and the right to adopt the Euro as its’ functional currency, prospective members have to demonstrate compliance with the Maastricht Treaty, put in place upon the founding of the Euro Zone. The treaty’s purpose was to safeguard the economic stability of the Euro Zone, to which end (and for the purposes of our report), the following four articles are particularly relevant: 1) The member country cannot have inflation rate 1.5 percentage points higher than the average of the three EU countries which have the lowest inflation. 2) The ratio of the annual government deficit to gross domestic product (GDP) must not exceed 3% at the end of the preceding fiscal year.