Obviously, every project has its pros and cons. The euro-project is no exception. We've listed them here. We've noticed that there seem to be more cons than pros but the euro will be introduced regardless.

The pros:

• It will be easy to compare prices in different countries. You don't have to change money anymore or make complicated calculations.
• There are no exchange rates. If for instance a British computer company uses Spanish parts and pays for them in pesetas, and the peseta becomes more expensive, it has to raise the price of the computer. And then you can’t compete, so you’ll incur losses. The Euro does away with exchange rates and therefore also with the risk of sudden losses.
• To join the euro, all countires must meet the criteria of the EMU, that is, they must have a sound economy. If the economy in all countries does well, trade will increase and therefore also employment.
• Without exchange rates, you don’t lose money on holiday when you change it

The cons

• There is no political union. Some people think that it is necessary to have a political union, because they are afraid that some countries will not play by the rules, or that they manage to join without meeting the criteria of the EMU.
• Introducing the euro is very expensive. All the old money must be collected, destroyed and replaced by euros. This is hugely expensive without any benefits. People who support the euro say that it is a one-off expense.
• Unemployment will increase. Trade will also increase. As a result, companies will no longer be able to compete because of increased labour cost, so that they have to make people redundant. Also, companies may move to countries outside the EU where labour costs are lower. The
• EMU-criteria stand in the way of economic growth. The state may not get too deeply into debt, and therefore has too little money to invest in projects and in the economy.
• Social welfare will fall in prosperous countries. Since borders will be done away with, people from a country with low welfare will be able to move to a country will high welfare, without having to pay to cross the border.
• The policy of political freedom of smaller countries is past. Bigger countries will have more to say than smaller countries. This, incidently, does not apply to the Central Bank.
• Will the euro be accepted as easily as is thought? That is a personal matter. Some people fear they will lose their identity if they pay in euros that do not originate in their own country. For instance, Greeks may not accept Finnish euros, even if officially they should.

These are the most important pros and cons. Some pros will be cons for other countries. And vice versa, of course.