The main goal of the European Monetary Union is to establisheuroThe single European currency.The euro officially replaced the national currencies of the member countries of the European Union in 2002.On January 1, 1999, the transition period for the initial use of the euro began.
Euro onlybanking businessCurrency exists in the form of bookfinancial transactions andForeign exchange transactions。This transition period will last for three years, after which the euro will be fully circulated in the form of notes and coins.The members of the European Monetary Union include Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain, and Portugal.
In March 1979, the 12 member states of the European Community at that time decided to adjust their plans and formally began to implement the European Monetary System (EMS) construction plan. After 1988, this process was significantly accelerated.In December 1991, the 12 member states of the European Community signed the《Treaty of Political Alliance》And the Treaty of Economic and Monetary Union.
The goal of the Political Alliance Treaty is to implement a common foreign policy, defense policy and social policy. The Economic and Monetary Union Treaty stipulates that it should be established no later than January 1, 1999Economic currencyEconomic and Monetary Union (EMU) will realize unified currency, unified central bank and unifiedmonetary policy。
《Maastricht Treaty》After being approved by the parliaments of each member country, it came into force on November 1, 1993. At the same time, the European Community was renamed the European Union.The European Monetary Authority was established in 1994 and formally decided in December 1995single European currencyThe name of iseuro（Euro）。July 1, 1998European Central BankIt was officially established. On January 1, 1999, the Euro was officially launched from 1999 to 2001, a three-year transition period for the Euro.
Allied countries
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Among the 15 EU countries, except GreeceSweden, Denmark and the United Kingdom, the remaining 11 countries (France, GermanyLuxembourg、Belgium, Netherlands, Italy, SpainPortugal, FinlandAustria、Ireland）Has become the first batcheuroCountry.The European Central Bank is located in Frankfurt, the financial center of Germany. The first president of the European Central Bank was William Duisenberg, a Dutchman.
According to the Euro system[exchange rate]The conversion mechanism, when the euro was officially launched on January 1, 1999, determined the exchange rate of the euro against the currencies of 11 countries. The exchange rate between the currencies of each member country and the euro was completely fixed and could not be changed until 2002 (during the transition period), when the currencies of each country were replaced by the euro.
Since January 1, 2002, euro banknotes and coins have started to circulate. Euro banknotes are uniformly designed by the European Central Bank and printed and issued by central banks of all countries;andEuro coinsThe design and distribution of are separately completed by various countries.On July 1, 2002, the original currencies of all countries ceased to circulate. At the same time,euroWill be officially unified by all member statesLegal tender。
Monetary system
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Spain issues commemorative silver coins of European Monetary Union
With the development of the economy of European Union member statesFinancial integrationWith the acceleration of the processRegional monetary system——The European monetary system was born.
The European monetary system started from the European Monetary Union, and its origin can be traced back to the "European Payment Union" established by the European Economic Cooperation Organization on July 1, 1950 and the "European Monetary Agreement" that replaced the Union in 1958.
Although the "European Payment Union" and the "European Monetary Agreement" started the process of European monetary union, they did not put forward specific ideas for European monetary integration. The starting point at that time was to promote the economic and trade development of member countries.
It was after the establishment of the European Community that European monetary unification was really put on the agenda.In 1957, Germany, France, Belgium, the Netherlands, Luxembourg and Italy signed the Treaty of Rome,European Economic CommunityThe Charter was issued.
In December 1969, the European Community formally proposed the establishment of the European Economic and Monetary Union and designed a timetable, but the first 10 years did not go smoothly.In July 1978, the European monetary system was officially established to counter the dependence on the US dollar. But by 1993, we clearly saw that the European monetary system had failed.
Monetary development
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In January 1999, the European Monetary Union (EMU) was launched in the midst of controversy, marking the fourth anniversary.on the whole,euroThe operation of the European Central Bank is better than many critics had expected: the European Central Bank basically reached its stability goal, and its controlInflation policyMore transparent and easier to communicate;The European Monetary Union (EMU) has generally strengthened financial budget constraints, making the countryDebt ratioAnd improved the conditions for economic growth;
In financial markets, the euro acts aseconomic structureThe changed integrated engine and catalyst played a role.At the same time, it should also be noted that in the unifiedmonetary policyAnd exchange rate policy,Inflation rateAnd economic growth rate;The introduction of the euro has also intensified competition in the banking industry and led to a series of structural changes.On the whole, the advantages of the fourth anniversary of the birth of the euro outweigh the disadvantages.
At the beginning of 2003, the euro spent four years, and the introduction of euro cash has also been a year.In revieweuroWhen developing, we should take into account that the European Monetary Union (hereinafter referred to as the "Union") is a long-term project and is in the consolidation stage after its successful establishment;Especially in terms of the Stability Pact, the management of the Alliance should not be ignored.This paper reviews and elaborates the development of the Union from 1999 to the end of 2002 when the euro was introduced and the impact of the introduction of the euro on the regioneconomic stability And the role of growth, the impact of the euro on financial markets, the exchange rate of the euro, international status and other issues, and reached a more optimistic conclusion.
Alliance launch
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According to the resolution of the 1995 Madrid EU SummiteuroThe transition is carried out in stages.The two most important stages are that the Union was officially launched by 11 member countries on January 1, 1999 and introduced the euro asBookkeeping currency, and the issuance of Euro cash in early 2002.Therefore, the euro was initially introduced in the financial market and monetary policy.Due to adequate preparations, the technical transformation of the financial market was completed at the beginning of 1999, and the euro came onto the stage successfully. Only a few days later, the euro's foreign exchange, currencybondandstock marketTransactions forLiquidationIt went on smoothly.
In the transitional period three years before the birth of the euro, the principle of the financial market and monetary policy for the euro is "no prohibition, no coercion", that is, the transaction of the euro is not an obligation but a voluntary principle.This policy has little impact on the lives of residents in member countries, because contracts, prices, incomes, rents, currency and cash transactions are still in the original currency.During the transition periodeuroOnly as intangible“Virtual currency”, to some extent, it reduces the public's recognition of the euro.
staybanking business, business operation and public sector, Euro and countriesHome CurrencyIt only plays a secondary role.Many banks began to convert only in the second half of 2001, and some even ended in 2001.In banking, corporate operations and the public sectorBookkeeping currencyThe conversion and transaction of.The currency conversion of enterprises is generally smooth. The fear that many SMEs are slow to prepare and interfere with the operation of enterprises after 2002 has not been confirmed.
Euro advantage
January 1, 2002“euroThe euro has become the only currency for contracts, prices, incomes and rents. At the same time, the euro cash introduced has officially become the legal currency of 12 member countries with more than 300 million residents.Issuance of Euro Notes and Coins and Member StatesHome CurrencyThe recovery of has brought huge transportation volume, which has been successfully completed due to adequate preparation.Previously, the collection of "sleeping coins" from various countries made an important contribution to the introduction of cash.In December 2001, due to the recovery of the old currency, the cash flow of the euro countries was only 33% of the same period last year. After the introduction of the new currency in 2002, it kept rising to the normal level, reaching 333 billion euros in December 2002, close to the average level in the first half of 2001.The end of February 200 is the deadline for commercial banks to exchange. Since then, central banks have continued to exchange local currency cash.German Central BankPromise to exchange indefinitelyDeutschmarkCash.By the end of 2002, more than 96% of Deutschmark notes and nearly 50% of coins (according toface valueCalculation) has been recovered, but there are still hundreds of millions of Deutschmark notes and nearly 7.5 billion mark coins in circulation.abouteuroAlthough there are some criticisms, the phased introduction plan of is proved to be positive in the end, because phased implementation allows proper preparation, and the overall implementation is smooth and realistic.
After the introduction of euro cash on January 1, 2002, the advantages of the euro for residents can be experienced first-hand.It is shown that a large amount of time is saved during vacation and business tripCurrency ExchangeCost and trouble, while improving price transparency.Euro cash was quickly accepted by residents.Two weeks after the introduction of cash, 90% of payments in the euro area were made in euros, although the local currency was still available until the end of February 2002.
A year later, according to the survey of the European Commission, 90% of the residents expressed confidence in the euro notes and nearly 70% of the residents expressed confidence in the euro coins.80% of people against euro notesface valueThe division was satisfactory, but only more than 50% of the people were satisfied with the division of the denomination of coins.becauseexchange rateThe reason is that residents of some countries (such as Italy, Austria, Greece, etc.) have difficulty in using large denomination coins. They have lost the habit of using small denomination notes (such as tipping). These countries want to issue 1euroAnd 2 euro notes, but the survey of all euro countries shows that 75% of people think it is unnecessary.
It is still difficult to think in euros after the first anniversary of its introduction.According to a survey conducted in the autumn of 2002, 60% of euro area residents also converted prices back to the original currency, even 75% in Germany.90% of consumers said that when purchasing large commodities (such as cars), they also converted the price back to the original currency.47% of people are willing to keep the dual currency price tag of goods (still exists in many countries), because the dual currency price tag reflects theeuroAn important part of transitionPsychological disordersThe European Commission recommends that this phenomenon be eliminated by mid-2003.
The marks left in Eastern Europe, Southern Europe and Turkey were also converted into euros without any problems at the beginning of 2002.The European Central Bank estimates that half of the euro cash circulating outside the euro area is in the above-mentioned areas, about 25 billion euros.Euro cash is used as a hedge just like the original mark.Euro is legal in MONTENEGRO and KOSOVO regionsPayment currency。
inflation
euroThe impact of cash introduction on prices, interest rates and economic growth is smaller than expected.However, a few months after the introduction of the euro cash, most countries have had arguments about the inflation caused by the euro.Especially in Germany, the debate was fierce, and the word "TEURO" was invented.According to the autumn 2002 survey, 75% of residents in the euro area believe that prices in various industries have risen significantly since the beginning of the year.Statistical inflation and residents' feelingsInflation rateThe difference between them is obviously underestimated.In fact, at the time of the euro conversion, the prices of many goods that consumers are familiar with daily have been raised.In fact, in December 2001, the inflation rates of Eurocountries and Germany were 2.0% and 1.7% respectively, while in January 2002, they rose to 2.7% and 2.1% respectively (coordinatedConsumer Price Index, HVPI), so the reason for the price increase in 2002 cannot be attributed to the euro as a whole.The main reason is that fruits and vegetables are much more expensive due to the climate in southern Europe. In addition, in some countries (such as Germany), the consumption tax increases, and the prices of service industries (such as restaurants, hairdressers, and cleaning industries) rise.2002euroThe average annual inflation rates of China and Germany are 2.2% and 1.3% respectively.
According to the Mayo, the top priority of the European Central Bank is to maintain price stability and ensureCurrency stabilityTo support common economic policies.The European Central Bank has achieved stabilitymonetary policyWe need to focus on the whole euro area.The European Central Bank willInflation rateIt is set at 1% - 2% of the year, which indicates that the European Central Bank combines inflation withdeflationAs a threat to price stability.ECB'sPrice stability targetOnly in 1999 (1.1%) was strictly reached, and the results since then have been between 2% and 2.5%, that is, the European Central Bank is very close to its price stability goal.
Pay attention when judging price stabilityeuroChina does have factors that stimulate price increases.In 1999 and 2000, the rise in oil prices and the fluctuation of the euro exchange rate threatened price stability. In 2001, the rise in food prices caused by mad cow disease led to a record 3.4% rise in prices in May 2001.But there is no reason to worry that the alliance will develop into an inflation alliance.Since the launch of the Alliance, the divergence of inflation rate has increased.Critics believe that the unified monetary policy cannot take into account the economic prosperity of member countries and the requirements of stable policies.The European Central Bank is independent of member state institutions and EU institutions, which expect the euroCurrency stabilityIn recent years, its independence has been unquestionable.The leadership of the European Central Bank has played an important role in this regard.
monetary policy
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The European Central Bank has established its credibility through the orientation of five conditions of stability.Seven improvements from November 1999 to October 2000Dominant interest rateIt is an important stability policy decision.Some people often accuse the European Central Bank of being too preventiveInflation riskIn contrast to the Federal Reserve, too little stimulus to the economy.Comparison between the US, the EU and the European Central Bank before the end of 2000Macroeconomic policyIncluding the monetary policy, we will get the impression that the growth recession in Europe is the structural reason.No,euroExtensive and necessary for big countriesStructural reformThe European Central Bank is powerless, such as implementing expansionarymonetary policyWill causeinflation。
Monetary policy tools(Open market transactions, current financing facilities and minimum reserves) guaranteeShort term interest rateFlexible regulation and bankingmobilityReserves.The European Central Bank regards the main financing business interest rate as the market leading interest rate.Central banks play an important role in implementing monetary policies.They are responsible for the implementation of monetary policy strategies in various countries.
Price stability targetThrough the "two pillar strategy".The first pillar isMoney supply, the European Central Bank has formulatedprice levelThe relative stable money supply in the medium term.Broad moneyThe reference value of M3 annual growth rate (always 4.5%) is rarely related to the previous money supply target of the Federal Bank.The growth rate of the real money supply since 1999 is significantly higher than this reference value, except from the middle of 2000 to the middle of 2001.The second pillar is price development forecast, including a series ofEconomic indicatorsAnd financial market indicators, such as production and import prices, orders, businessProsperity index, budget balance, cross linking, etc.) provide early signals for price development.
The idea of the European Central Bank has been criticized because it is difficult to understand and act as an intermediary. In addition, the two pillars sometimes send different signals.For example, those who exceeded the target in 2002Money supplyIndicator triggeredinflationWhile other indicators indicate that economic development is difficult andInflation rateLower.The European Central Bank draws on these experiences to develop a new evaluation system for the 2003 strategy. Whether there is any change remains to be seen.The transition to a direct inflation target as a priority strategy is worth recommending, because this target is easy to communicate to the market and the public, and also easy to detect.This direct inflation target should be about 1% - 2.5%, slightly looser than the European Central Bank's stability standard, in order to make more flexibility possible.
The European Central Bank uses various channels, such as press conferences, monthly reports and the Internet, to explain itsmonetary policy。Central bank governors and other leaders regularly submit reports to the European Parliament.Although a study shows that 94% of the ECB's monetary policy decisions have been correctly accepted by the market, there are always people who accuse the ECB of increasing transparency and communication with the public.The European Central Bank has also adopted some suggestions.Since 2002, the Central Bank has announced theinflationAnd economic growth report.euroThe regional statistical data base needs to be continuously improved to improve the pertinence of monetary policy.Requirements for greater transparency, such as the disclosure of the minutes of the meeting of the Council of the European Central Bank, should not be adopted, because the publication of the voting situation is likely to exert pressure on the members of the Council, endanger the independence of the European Central Bank, and may trigger national tendencies of the central bank governors of member countries.
Financial budget
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The fiscal budget deficit of the member countries of the Alliance fell sharply from 6% of GDP to 2.6% of GDP on average during 1993~1997.In 1998, most of the 11 countries met the standards, and there is no reason to worry about the difficulty of meeting the standards on the whole.After the launch of the Alliance, each country's financial budgetDeficit ratioAnd countryDebt ratio(National debt/GDP) continued to decline on average.The good economic boom in 1999 and 2000 helped.Due to increased financial budget constraints,euroThe overall national debt ratio of the region dropped to 69.5% at the end of 2001.This indicator has been rising for decades before, reaching a peak of 75.3% in 1996.The debt ratio of Italy, Belgium and Greece has been higher than 100%. It is disappointing that the debt ratio of Italy has been stable since 2000, while the debt ratio of Greece has been rising.On the contrary, Belgium has made continuous progress.all countriesDebt ratioA reduction of is considered a significant achievement.
Based on the weak economic boom in 2000 and 2001, the budget deficits of Germany, France, Italy and Portugal rose to《Stability and Growth Pact》(hereinafter referred to as the Convention).The European Commission initiated a sub judicial action after the budget deficits of Portugal (2001) and Germany (2002) exceeded the prescribed standard (3% of GDP).The EU's warning to Germany failed in the spring of 2002 because the EU finance ministers meeting rejected the relevant request of the European Commission, and German finance minister Eischer promised to balance Germany by 2004financial deficits。Whether the EU Finance Ministers' Meeting will impose sanctions on Germany depends on the progress made by Germany in balancing its fiscal revenue and expenditure in May 2003.At the beginning of 2003, France was also warned.
Some politicians and economists criticized that the rules of the Convention are too rigid, but in order not to cause damage to the trust of monetary union, it is not appropriate to give up or relax the compliance with the Convention, and it is suggested to use it flexibly.After extensive and in-depth discussions among the public and political circles, the European Commission gave a better interpretation of the Convention in November 2002.An important suggestion is that the budget deficit should be at least reduced to zero in a good economic yearfiscal policyUse flexibly to prepare.In addition, we should distinguish between the economic boom deficit and the structural deficit in the future.Structural deficit countries have the obligation to reduce structural deficits, and the existing deficit situation should be taken into account when evaluating the fiscal situation in the future.In order to implement the proposal, the European Commission should strengthen its supervision, and it should have the right to warn countries with unstable budgets without the consent of the finance ministers' meeting.On the whole, the evaluation of the recommendations of the European Commission is positive.
Budget constraintsIt is one of the pillars of the Alliance.In principle, the standards of the Convention will also be effective in the future.First, this involvesmonetary policyAnd fiscal policy.The task of the convention is to avoid being too loosefiscal policyResulting in excessive demand for monetary policy.The risk of this situation is that the excessive budget deficits of countries will cause the alliance'sinflationAnd then make the European Central Bank improveDominant interest rate。Secondly, the fiscal policy in the alliance has a transmission problem, because those with excessive deficits will no longer sufferexchange rateAnd interest rate fluctuations, so the effect of unstable fiscal policy willeuroZone diffusion.
The European Union Treaty stipulates that the EU and its member states have the obligation to closely coordinate their economic policies in order to promote economic growth and employment.The "economic policy guidelines" agreed on every year constitute a coordination framework.The aim of the policy is to ensure a growth oriented and stable EUMacroeconomic policyHowever, the policy is only a suggestion, and the only specific agreement on fiscal policy coordination among member states of the Alliance is the Convention.
However, the requirement for more coordination goes beyond the scope of the Convention, such as in the European Commission.Because of the alliancemonetary policyHas been centralized, andfiscal policyAnd other important policy areas remain in the hands of member states.This proves that a closer economic policy coordination and cooperation is needed to avoid efficiency loss, disorderly competition and its growth trend in the internal market.Advocates of coordination call for the "best policy coordination" between monetary policy and fiscal policy. The independence of the European Central Bank first limits this desire.It has proved useful that actors in the two policy areas often exchange views on their actions.
Although the economic policy coordination beyond the fiscal policy of the alliance is worth efforts, it is not necessary for the operation of the alliance.In addition, experience shows that coordination within the alliance has certain boundaries, because coordination is voluntary and results are open and depends on political will.The equal decision-making means of the members of the Finance Ministers' Committee are also often proved to be "non sharp weapons".It should also be noted that after the launch of the Alliance, governments can still implement structural policies (in addition to the budget deficit standard) andfiscal policyTherefore, it is not surprising that economic policy coordination is still lacking.
One suggestion for improving policy coordination is to integrateeuroThe group of economic ministers and finance ministers of the 12 countries was upgraded and reorganized to be subordinate to the EU Decision making Committee.Opponents believe that a decision-making committee has been formed outside the Council of European Finance Ministers, which increases the risk of EU fragmentation, because after the enlargement of the EU in 2004, 13 non EU countries will surpass the euro countries.In this way, the financial market resolution of the Council of European Finance Ministers is invalid for the euro countries.The conclusion is that thisInstitutional reformIt is unnecessary and difficult to achieve results.
Internal economy
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In the first two years of the alliance, the alliance countries achieved good growth rates of 2.8% and 3.6% on average, which is the best since the 1990s.It is disappointing that the growth rate stagnated at about 1% in 2001 and 2002, and the slow growth was almost parallel to that of the United States.So hopefullyeuroThe aspiration of China's development to separate from the United States has not been realized.Since the launch of the Allianceunemployment rateIt has fallen back, but it is still significantly higher than that of the United States.By international comparison, the average growth rate of the euro countries in the first four years of the alliance was slightly higher than 2%, lower than that of the United States (2.5%), and also lower than that of the United Kingdom and Sweden.
The strategic goal of the Lisbon Summit of the European Union in March 2000 - to build the EU into the most competitive and dynamic knowledge-based economic zone in the world by 2010 is not suitable for the euro countries.This is related to the economic policy of EU countries, not the euro countries.On the contrary, at least in the long run.The alliance has significantly improved the conditions for growth in Europe.First, due to the cancellation ofexchange-rate risksIt has won more security in trade and investment and saved exchange rate costs.Secondly, the alliance has improved price transparency, thus increasing competition.At the same time of globalization and rapid progress of information technology, alliances have shown to be an important catalyst for enterprise restructuring and repositioning;Just like 2000 years ago, there were manyenterprise mergersPhenomenon.Third, the alliance has been converging with Germany, which has relatively low interest rates, to bring low interest rates to high interest rate countries, thus promoting investment and stimulating growth.This is particularly relevant for Ireland, Spain, Greece and Portugal.
1999-2001eurolowexchange rateIts role in increasing prosperity is welcomed.The disadvantage is that the low exchange rate of the euro makes governments regard it as dependence and not rush to take structural reform actions.This can at least partly explain and prove why it is too early to expect that the intensified competition in the Eurozone will accelerate the necessary process of structural reform in the Union countries.Although most alliance countries reduced income tax andcorporate income taxHowever, the medium-term tax relief plan (such as in Germany) has not been implemented continuously.It is necessary to continue to promote tax relief for growth.From the perspective of the objectives of the Lisbon Conference, it is necessary to carry out major reforms in the social security system and the labor market, especially in the three largest countries - Germany, France and Italy.
Germany (accounting for about 30% of the economic potential of the Union) has also been disappointed by its continued weak growth since reunification, which has slowed down the growth rate of Europe.The growth problem in Germany has nothing to do with the establishment of the alliance. First, it is caused by internal factors.The weak growth of Germany should be explained by the unified burden of Germany and the structural crisis of the construction industry.Germany needs more flexibility, less bureaucracy and less excessiveexpenditureBurden.The hope that the establishment of the alliance will automatically bring structural reform to Germany has not been realized.Germany's excessive dependence on exports does not explain that its weak economic growth has nothing to do with Germany's lack of action in economic policy.Germany has the key to reform and mobilize internal economic growth power in its own hands, and should also be responsible for Europe.
In the first four years of monetary union, the growth differences among countries are obvious.The difference between Ireland (11.5%) with the highest growth rate and Germany (2.9%) with the lowest growth rate in 2000 was 8.6 percentage points.The overall growth slowed down in 2002, and the gap narrowed to 4.5 percentage points.Small alliance countriesgrowth rateVery different, but Germany and Italy are relatively low and close.France was not only significantly higher than Germany in the growth rate of 3% - 4% from 1998 to 2000, but also higher than Germany in 2001 and 2002.There are many reasons for the increasing differences in monetary union.Low growth countries should take advantage of the opportunity to promote growth by reforming supply policies.
integrated
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euroThe introduction promoted the integration of European financial markets and became a catalyst for structural change.However, it should also be noted that in the past few years, the euro has only been a factor influencing the development of financial markets in euro countries, while there are other factors, such as liberalization, deregulation and globalization caused by the continuous promotion of financing activities, and the important role played by the leaping development of information and communication technologies.
The euro has improved market transparency and competition.For investors, the transition to the euro since 1999 has simplified the euro countryfinancial products The comparison of price and income has expanded the scope of currency risk investment.For institutional investors such as insurance companies, the restrictions are applied through the euroHome CurrencyThe investment of.Eurozone cancellationexchange-rate risksCurrency related investment barriers have led to the strengthening of the euro area's cross-border asset portfolio.German investors' investment in securities of other euro countries surged by 150 billion euros in 1999 and 2000.
Components of financial market (foreign exchange market, money market, bond marketstock market）The degree of integration varies greatly.The currency market was fully integrated from the first trading day of the Alliance (January 4, 1999),Uniform interest rateThe money market (inter-bank lending market) has also been established.This is necessary for the smooth implementation of monetary policy close to the market.TARGETPayment systemAfter overcoming the initial technical difficulties, it operates normally and has made great contributions to this end.euroThe positive factor for the development of the financial market in the district is that in early 1999, the money market soon becamefuturesandSwapsEURIBOR and EONIA reference interest rates were introduced to replace the old DM-FIBOR interest rates.
The loan market has also made remarkable progress in integration, and has been broadened and deepened. Many financing and investment tools have emerged, such asbonds issued by an enterpriseThe mortgage market developed significantly because the latter was established in some countries (France and Spain).EuropeStructured financingThe market grew strongly, for example, the total investment scale was expanded through ABS (asset securitization).Market deepening is first manifested in the alliance countriesnational debtThe liquidity of.The amount of bonds issued by governments around the world has soared due to the concentration of non market maturities.Union creates other euro countriesgovernment bondsAnd the German FederationBond yieldConvergence.The former and the latter after the launch of the allianceInterest marginVery low (less than 50bps), Federal Republic of GermanybondBased on its liquidity andProfitabilityAfter the establishment of the Alliance, its yield became the bottom line of other national bonds.Of course, there is no guarantee for this situation, which must be achieved through stablefiscal policyWin.
staystock marketandexchangeIn terms of structure, the integration progress is slow.On the positive side, the performance of stocks can be understood through the new stock index, which significantly increases the conversion of stock investment in Europe.The alliance caused the focus of stock investment to change from country oriented to industry oriented.The rise of stock market and the listing behavior of enterprises have significantly expanded the influence of stock culture in Europe, including Germany.
Four years after the launch of the Alliance, the stock market still needs to be further improved.The differences in tax, accounting system and legal framework within the alliance have brought significant obstacles to integration.This is especially obvious compared with the United States, which has uniform rules.In any case, the EU has made progress on the road to greater transparency.In particular, it is worth mentioning that listed enterprises are obliged to make year-end accounts in accordance with the International Accounting Standards (LAS) since 2005.
It is expected that the common currency will increaseEuronextStructure andLiquidationThe integration of structure is only in its infancy.Establishing a common trading platform for the listed stocks of Belgium, France, Netherlands and PortugalEURONEXTIt became the most important integration measure after the failure of the Frankfurt and London projects.In terms of clearing, the central securities depositories in Netherlands, Belgium, France and BritaineuroThe first step of structural improvement has been taken after the combination on the basis of liquidation and the integration of liquidation with the German Stock Exchange Group.
Bank reform
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euroThe introduction of WTO has intensified the competition in the banking industry and brought about a series of structural changes.Some business areas of banks disappear (e.gCurrency Exchange）However, the structure and framework conditions of other business areas (such as bond issuance) have changed.Although the preparation of euro by banks is costly, it also has a series of practical benefits: for example, the introduction of euro is a "fitness activity" for many banks, bringing banksElectronic data processing systemModernization, so as to make the business process more rigorous.The most important benefit is that the alliance has promoted the integration of financial markets and increased the business possibilities of banks.
The increasing competitive pressure has accelerated the integration of the banking industry.eurozonecreditThe number of institutions has decreased by 17% since the launch of the alliance (that is, more than 1400 banks). This situation is first based on the mergers of small and medium-sized banks in various countries, such as savings banks and cooperative banks in Germany.The corresponding market clean-up is limited in terms of amount.euroIn the previous years, there were relatively few cross-border bank mergers and acquisitions, most of which were medium banks.This may be related to the different cultures of the alliance countries, and also to the fact that the business volume of the branches in the alliance partner countries has not risen enough to be attractive.The complete integration of the European banking market (which must include increased cross-border integration) has not yet arrived.
Four years after the introduction of the euroFinancing structureAlthough it has changed to a capital market based system like the United States, it still continues to rely strongly on banks.Euro area at the end of 2000Loan balanceIt accounts for 105% of GDP (according to the data of the European Central Bank), while in the United States this indicator is only 40%.One important reason is that small and medium-sized enterprises in the euro area account for a much larger proportion of the economy than those in the United States.But because most of them lackCapital market financingAbility, so we always rely on bank loans.
The introduction of the euro makes cross-border payments in the unified euro area more convenient and fast.In terms of large amount payment, since 1999, TARGET and EBAI have provided efficientPayment system；On the contrary, there is still a lack of efficient clearing system in cross-border large amount payment.After the launch of the alliance, the expenses in this field are still much higher than those paid in China, so it has been widely criticized.The regulations adopted by the European Commission in December 2001 enable domestic and foreign payments to achieve uniform standards in two stages.The basic problem that must be solved to continuously improve cross-border large amount payment is the diversity of payment structures in terms of systems, standards and regulations.In addition, given the relatively small amount of cross-border payments - only about 0.5% of domestic payments - it is difficult to grow significantly.The European financial community envisages solving this problem by creating a unified European Payment Area (SEPA).
