Argumentative Essay (Step 1 and 2)

THIS HOUSE WOULD ABOLISH THE SINGLE EUROPEAN CURRENCY

Former president of the German Bundesbank, Dr Helmut Schlesinger, who in a speech in Los Angeles in April 1993, said that:

"Many economists feel that the single European market will only have been completed economically if Europe actually also has a single currency. Nothing expresses this conviction better than the well known slogan, "one market, one money" However, I believe it to be somewhat short shighted simply to regard the European monetary union as the logical conclusion to the process of economic integration. The monetary union is rather a step with a significance of its very own. A single market can exist and be beneficial without inevitably requiring further moves towards integration in the monetary sphere. Nobody to my knowledge is calling for the creation of a single North American currency, as the consequential establishment of a North American free trade area."

When we first think about the welfare, there would be few words come to our mind, Europe. European Union has been purchasing a large scale social project that once "was" the model of other countries for their welfare policy; yet, due to the perennial government  debt, European Union almost had collasped. Even recent days, they still are facing abysmal situation with their million debts. This welfare catastrophe in Eureope not only toss a question rather welfare state system like most of the European countries is a right way to go, but also questions the practicality of European Union systems itself. Reminding the fact that the countries joined in Eurpean Union aren't able to use monetary policy, they lost one of their most powerful tool to control the nation's economy. The reason is clear: member countries of Eurpean countries cannot print money or properly control the money supply since they all use same currency, Euro. For this big defects of using singe currency, we come up with an argument "This House would abolish the single European currency".

Eruo once threatened the status of U.S. dollar as a key currency. With European Union's  world biggest market size, Euro was one of the most convenient and efficient unit of market exchange. Nevertheless, the fact that countries in European Union all had distinct characteristics and  different level of economy, less developed or less economically influential coutries suffered to adjust their price level to other countries and comparatively more economically influential countries suffered to condescend to less economically developed countries. For this differences, Euro was like a time bomb. Absolute value of Euro created gap between member states of European Union; this gap tumbled the whole European Union system which eventually caused Greece's economy slip and PIGS economic crisis. 


Aforementioned information is a basic background information about the European Union and the motion itself. As already somewhat revealed, I'm personally for this motion. Although the aim of the singe currency was nice, single currency in imperfect system only will cause catastrophe; European Union in this regard is incomplete union and before considering to unite their currency, they should have checked the balance between member states. Futher detailed arugments will be dealt in step 3 and my essay :) 


Source:


http://www.brugesgroup.com/mediacentre/index.live?article=74

http://idebate.org/debatabase/debates/politics-economics/house-would-abolish-single-european-currency

http://mailhost.econ.yale.edu/seminars/apmicro/am05/israel-050915.pdf