Why Euro is a good idea, but will fail

The Euro in its current form will fail. It will never replace the dollar as a world currency, and the countries within the Eurozone will need to make significant adjustment to keep this common currency. It isn’t possible over time to keep a common currency if you don’t adjust government spending and taxes in the zone.
As long as the countries within the zone respects the boundaries of having a common currency will one currency is of a great value for the governments and the people living in the zone. It will also reduce the risk when doing business within and between the zone and outside. So having a common currency is great for business, and also convenient for people travelling from country to country.

The practicality for people is a “nice-to-have”. The key factor is to build a currency that can hold investments. You would like to have your savings or investment in an economic environment that is safe – or you accept the level of risk present in that market. But the key factor here is trust. The euro isn’t stronger than the weakest link. As long as the strong economies in EU doesn’t fully subside the weak economies, will the zone go in different directions. This has an impact on pricing of goods, but also the finance tools the governments in each country have.

Until EU starts to act like one country in terms of spending and taxes will the Euro be under attack from the different governments with different political agendas. A common currency is one of the products of an union – it should be the reason to strength the union.