European Affairs

The Euro's Impact on Europe and the United States     Print Email

Introduction

Most Americans have not given much thought to the euro since it was launched with considerable fanfare by 11 of the European Union's 15 member states at the beginning of 1999. Those who have paid some attention may be forgiven for concluding that the only noteworthy feature of the new currency has been its headlong plunge against the dollar.

But much more has been going on in Europe since economic and monetary union eliminated the possibility of exchange rate changes between the 11 participating countries and transferred control over interest rates to the new European Central Bank in Frankfurt. What is now happening is of direct relevance to Americans, and to the international role of the dollar.

In this special report, Steven Everts of the Centre for European Reform in London, argues that the euro is good news for US-European relations, and that it will help Europe to become a stronger and more valid international partner for the United States - even if the world role of the dollar is now bound to be gradually reduced.

The well-known British commentator, William Keegan, Associate Editor of The Observer newspaper, examines the background to the creation of the ECB and explains why it has a bias toward controlling inflation rather than stimulating economic growth, and Robert D. McTeer, Jr., President of the Federal Reserve Bank of Dallas, offers a special view from the Lone Star State. McTeer admits he never expected the euro to see the light of day, but still wishes it well.

 

This article was published in European Affairs: Volume number I, Issue number II in the Spring of 2000.

 
  • World Radio Conference Outcomes

    By Patricia Paoletta, Washington DC

    The latest World Radiocommunication Conference (WRC) wrapped up in late November after four long weeks of negotiations between 3400 delegates from around 165 Member States. All in all, the WRC resulted in positive outcomes for both 5G and Wi-Fi, and will benefit both the U.S. and Europe's communications agendas, particularly with respect to the decisions on spectrum to be allocated for the all-important 5G service. The effect will be to ensure the more rapid development of the next generation of mobile broadband in a manner consistent with U.S. planning and existing development.  Debates on 5G dominated the conference, but allocations for high-altitude platform stations (“HAPS”) sought by U.S. based firms were also favorable. As a result, plans to provide additional internet service to underserved areas may be accelerated.

    Read more ...

UMD Jean Monnet Research Project

The University of Maryland has received a Jean Monnet grant from the EU to conduct a series of policy exchanges between Europe and the US on filling infrastructure needs and the utility of public/private partnerships as the financing mechanism. If interested in participating in or receiving more information about these exchanges, please contact Rye McKenzie (rmckenzi@umd.edu).

New from the Bertelsmann Foundation

The Bertelsmann Foundation is an independent, nonpartisan and nonprofit think tank in Washington, DC with a transatlantic perspective on global challenges.

"Edge of a Precipice" by Nathan Crist

"Newpolitik" by Emily Hruban

 

Summer Course