Title: Pros and Cons of the Euro
Headings: Pros and Cons of the Euro
Pros and Cons of the Euro
Key Takeaways
Pros
Promoting Trade
Encouraging Investment
Mutual Support
Cons
Rigid Monetary Policy
Possible Bias in Favor of Germany

Content: Pros and Cons of the Euro
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Pros and Cons of the Euro
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Andrew Beattie was part of the original editorial team at Investopedia and has spent twenty years writing on a diverse range of financial topics including business, investing, personal finance, and trading. Learn about our editorial policies
Andrew Beattie
Updated May 24, 2020
On January 1, 1999, the European Union introduced its new currency, the euro. The euro was created to promote growth, stability, and economic integration in Europe. Originally, the euro was an overarching currency used for exchange between countries within the union. People within each nation continued to use their own currencies. Within three years, however, the euro was established as an everyday currency and replaced the domestic currencies of many member states. The euro is still not universally adopted by all the EU members as the main currency. However, many of the holdouts peg their currencies to it in some way. Given the enormous influence of the euro currency on the global economy, it is useful to look closely at its advantages and disadvantages. The euro, which is controlled by the European Central Bank ( ECB ), was launched with great fanfare and anticipation.