European nations preferred Peace, Prosperity, and Cooperation to Wars and Conflicts that ravaged their past and decided to form the European Union.In 1992, the EU made the historic decision to go for a single currency named Euro. Euro became the virtual currency in 1999 and a real currency on January 1, 2002, when Euro Notes and Coins replaced national currencies in 12 of the 15 countries of the European Union. Banking sector remains predominant in financial intermediation in the EU. In terms of GDP, bank assets reached 280% and Credit to GDP ratio stood at 120% in 2003.
European nations, preferring Peace, Prosperity and Cooperation between them in place of Wars and Conflicts of the past, have decided to form what is called `European Union'. Initially, there were only six member nations to start with. Later, the strength went up to 15 and with the induction of 10 more members during 2004, the membership rose to 25. European Union now accounts for 28% of the world GDP and 20% of the global trade.
European Union, in terms of what is called, `Maastricht Treaty - 1992', aims at economic and political integration between the member states through common policies in areas like agriculture, competition, trade, commerce and industry and environmental issues. Even highly emotive and sensitive issues like defense, justice and home affairs are envisaged to be the subject matters of cooperation under this treaty, though there are still divergent views between some member nations as to the desirability of imposition of uniform policies. |
