The Rise Of The Euro
Tuesday 2 November 2010
Although the U.S. dollar has been battered or has fallen in value, its role as the world’s reserve currency—the anchor of global commerce—has never been challenged. Until now. The story begins after World War II, when the European nations decided to ensure peace by knitting themselves together.
In 1957, the European Economic Community was established in a landmark treaty signed in Rome. Six countries—France, West Germany, Italy, Belgium, the Netherlands, and Luxembourg—signed the Treaty of Rome.
It formed the bedrock of the European Community and was the true beginning of the European Union and the euro.
Several other treaties followed, each one pulling Europe closer together. The Maastricty Treaty, signed in the Dutch city on February 7, 1992, amended the Treaty of Rome and established the European Union, led to the creation of the euro, and established a more cohesive whole that included initiatives on foreign policy and security. The treaty, which called for bold steps to a closer union, was by no means a certain thing. Only 51% of France voted in favor, and Denmark rejected the first version. Today, however, the euro is circulating in dozens of countries and is used by hundreds of millions of people. If the U.S. dollar is ever unseated as the world’s reserve currency, it will be the euro that does it.
In 1957, the European Economic Community was established in a landmark treaty signed in Rome. Six countries—France, West Germany, Italy, Belgium, the Netherlands, and Luxembourg—signed the Treaty of Rome.
It formed the bedrock of the European Community and was the true beginning of the European Union and the euro.
Several other treaties followed, each one pulling Europe closer together. The Maastricty Treaty, signed in the Dutch city on February 7, 1992, amended the Treaty of Rome and established the European Union, led to the creation of the euro, and established a more cohesive whole that included initiatives on foreign policy and security. The treaty, which called for bold steps to a closer union, was by no means a certain thing. Only 51% of France voted in favor, and Denmark rejected the first version. Today, however, the euro is circulating in dozens of countries and is used by hundreds of millions of people. If the U.S. dollar is ever unseated as the world’s reserve currency, it will be the euro that does it.
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History of Forex