European Monetary Union and its effects on EU economy

VI ABSTRACT In this study, current and probable economic developments in European Union are examined under the framework of European Currency (EURO). Besides, negative and positive impacts of Euro are analyzed. This study comprises of three sections: In the first section of the study, Money Union as a concept is examined in theory and necessary conditions for success have been pointed out. In the second section, formation of European Money Union and transition to Euro have been examined historically and institutional structure of this money union has been investigated. The third and the last section of this study comprises of the impacts of Euro on economic developments of European Union and Euro region. Under the light of above mentioned framework, it can be postulated that Euro has certain negative and positive impacts on economic conditions of Euro region. The most significant positive impact of Euro has been the removal of ambiguity in currency exchanges and currency volatility. Besides, Euro has caused to economic development, competition, and stability in prices. Besides above mentioned positive impacts of Euro, negative censequences, which are can not be underestimated, of this money union can be postulated as unemployment and inquality between regions. Economic impacts of Euro, which are favorable in general, have capacity to improve economic power of Euro region and cause to the formation of a more stabilized money area.