Many years after the creation of the single currency, the euro, Europe faces one of the biggest crisis of its history. The euro was (and continues being) one of the strongest currencies in the world, however, it is still a “threat” and also a risk for the EU members who still have their own currencies.
The countries who have not joined the euro are Denmark, Croatia, Poland, Bulgaria, Czech Republic, Hungary, Romania and Sweden and of course the UK which will never join it after deciding to leave the European Union. Most of these countries are former Communist countries and their economy was not strong enough in order to join the euro earlier. However, even now that they have a relatively stable economy and the unemployment rates start going down, they are not sure if it will be good for them to become part of the eurozone.
Entering the single currency, of course, it will benefit them since the investors will decide more easily to invest in countries with a strong currency and also a currency that they are using on their trades. However, after the euro zone crisis in 2010 and 2013, this idea does not look so appealing. Especially after the bailout of Greece and the austerity that has been implemented in the country makes things more complicated.
Many claim that it is worth the risk of such a huge change, with the condition that the economy of each country can afford the euro. The main point of this view is that it will help that countries develop more with new investments. As Boris Vujcic, the governor of Croatia’s national bank stated to euronews.com “Every foreign investor looks at a country and one of the main risks for the investment is if they invest and the currency goes down”.
Without a doubt, entering the euro is not something simple. A typical example consists Greece, which due to wrong manipulations and the fake statistics of its economy which was shown in order to enter the euro were some of the factors that led to the hard economic situation that the country faces. So, every country that wants to join the eurozone should be 100 percent sure that they can afford this changed and that it will only get benefited by that.