The domestic factors affecting the German position in the single European currency

• Main Authors: De Guzman, Roselia, Magpayo, Nicanor
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: European currency unit, Money—European Union countries, Money—Germany; Eastern European Studies; International and Area Studies
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/4338
• Institution: De La Salle University

This study focuses its research on the stand of the German government on the Single Currency. From the start of the Economic and Monetary Union Germany the one who wants to pursue the goal of having a single currency in Europe. Chancellor Helmut Kohl is behind Germany's persistence because he wants Germany's economy to prosper through the Euro and to have a more cohesive Europe. Though the glittering promise of prosperity, skepticism still arises within the German people due to the rising unemployment brought about by the policies of the government to meet its own Maastricht criteria on convergence. The Euro will save millions of Euro per year and will provide more employment and capital investment not only in Germany but the whole of Europe. Many German businesses will gain because of the elimination of transaction and exchange rate costs. Prices of commodities will stabilized through out Europe eliminating price discrepancy within Euro member countries. It would be easier for investors to penetrate European markets and thus increasing investments. Tourism will also benefit because of the elimination of Exchange rate costs, tourist will save money and spend more for themselves.