European Economic Integration and Divide in Zones

Introduction

Economic integration offers numerous benefits to states of the Eurozone. These include multiple market opportunities, stable economies, mutual support, and specific monetary union with a single currency. Thus, the creation of the second one can add unnecessary complexity to the functioning of this organization. It means that there can be several undesired outcomes that can be listed to justify this position.

Benefits of Creating Two Monetary Unions in Eurozone

First, splitting Eurozone into two monetary unions will contribute to growing bureaucracy and the need for extra regulations to align the cooperation between partner states. It might deteriorate the quality of relations between them and reduce the speed of decision-making in complex situations or flexibility in terms of crises.

Second, the establishment of two monetary unions with independent currencies might demand additional market regulations and lead to the change in economic relations existing between partners. The questions of currency rates, their monitoring, and financial operations between members of the Eurozone will become more complex because of the need to consider all these factors.

Finally, the creation of two independent banks with their infrastructure and systems will make the financial aspect of the Eurozone more sophisticated. The existing body of knowledge evidences that simple structures are more effective in resolving complex issues and responding to alterations in external factors. For this reason, dividing a united zone into smaller ones with additional regulatory bodies might be an ineffective strategy.

Conclusion

Altogether, forming monetary units will not help to generate extra benefits for the Eurozone. It will lead to increased bureaucracy, demand extra financing, and promote the emergence of additional barriers between partners using different currencies. For this reason, the existing strategy seems the best approach to align the practical cooperation between partners.

Cite this paper

Select style

Reference

StudyCorgi. (2023, June 27). European Economic Integration and Divide in Zones. https://studycorgi.com/european-economic-integration-and-divide-in-zones/

Work Cited

"European Economic Integration and Divide in Zones." StudyCorgi, 27 June 2023, studycorgi.com/european-economic-integration-and-divide-in-zones/.

* Hyperlink the URL after pasting it to your document

References

StudyCorgi. (2023) 'European Economic Integration and Divide in Zones'. 27 June.

1. StudyCorgi. "European Economic Integration and Divide in Zones." June 27, 2023. https://studycorgi.com/european-economic-integration-and-divide-in-zones/.


Bibliography


StudyCorgi. "European Economic Integration and Divide in Zones." June 27, 2023. https://studycorgi.com/european-economic-integration-and-divide-in-zones/.

References

StudyCorgi. 2023. "European Economic Integration and Divide in Zones." June 27, 2023. https://studycorgi.com/european-economic-integration-and-divide-in-zones/.

This paper, “European Economic Integration and Divide in Zones”, was written and voluntary submitted to our free essay database by a straight-A student. Please ensure you properly reference the paper if you're using it to write your assignment.

Before publication, the StudyCorgi editorial team proofread and checked the paper to make sure it meets the highest standards in terms of grammar, punctuation, style, fact accuracy, copyright issues, and inclusive language. Last updated: .

If you are the author of this paper and no longer wish to have it published on StudyCorgi, request the removal. Please use the “Donate your paper” form to submit an essay.