Economic stability is a major goal of the European Union. By coordinating the economies of all of the EU nations, the EU is working to create a single market. Strengthening the national economies will help all of its citizens gain prosperity.

Euro

Creating a national currency is the first step to economic stability. The creation of the Euro is a step towards that stability.

Euro coins:

Source: euro coins, Europa

Euro banknotes:

Source: pimaage8758, Europa

The euro, the official currency of the European Union, was officially introduced January 1, 1999. The euro is used by 330 million people in 17 countries Here are some of the benefits of using the Euro:

• Promotes a single market
• Makes travel easier
• Creates a stable economy
• Promotes low inflation and low interest rates

The map below illustrates the use of the euro in EU countries:

Source: Euro EMU, Europa

You have just learned how the euro has become a successful step toward economic stability. The European Union has organized its banking system to create a strong European economy.

Source: European Central Bank, Eric Chan, Wikipedia

This is the European Central bank in Frankfurt, Germany. The European Central Bank is responsible for administering the monetary policy of the European Union.

The diagram below represents the systems of banks under the European Central Bank System:

Source: The European System of Banks, Europa

The focus on a stronger economy has placed the EU in a prominent economic place in the world. Take a look at the graphs below and answer the questions in your notes.

Source: How rich is the EU compared to the rest of the world?, Europa

Questions:

1. Which nation has the highest GDP in billions of euros, based on the charts?
2. Which nation(s) sees more wealth per person than the European Union?
3. How is it possible that a nation(s) can have more wealth per person, but as a nation have a lower GDP than other nations?