Euro, a resounding success, says EC

The European Commission has described the introduction of the euro “a resounding success'', noting however that there is still work to be done.
On the occasion of the ten years since the establishment of the Economic and Monetary Union (EMU), European Commissioner for Economic and Monetary Affairs Joaquin Almunia has stressed the need to further improve the economic governance of the euro area, through strong and binding political commitments, and to strengthen coordination of budgetary and economic policies.
He also mentioned the need to step up international economic strategy, adding that “we owe it to the citizens of Europe to ensure that the euro area becomes a vibrant example of growth and dynamism.''
''I intend to drive this debate forward with the member states, the Council and the European Parliament during the French Presidency and to come back with proposals,” Almunia said.
The Commission, he pointed out, “adopted a Communication – EMU@10: successes and challenges after 10 years of Economic and Monetary Union – that looks at the benefits but also, and more importantly, at the improvements needed to ensure that EMU works even better in the next decade and beyond.”
The Communication is accompanied by a staff Report, which provides a systematic review backing the policy analysis.
“The euro has delivered sustained price stability on a scale that many, if not all, of its members had never previously enjoyed, notwithstanding the recent spurt in inflation caused by soaring global food and energy prices,” he said.
The European Commissioner noted that “the Interest rates have come down to an average of 5% from around 9% in the 1990s and the abolition of exchange rate costs and risks has spurred internal trade, which now accounts for one third of the euro area's GDP, up from one quarter 10 years ago”.
Similarly, he continued, “intra-area foreign direct investment now stands at one third of GDP compared with one fifth before, showing that the area's attractiveness has increased markedly”, noting that “lower costs of capital have also boosted total private and public investment levels to 22% of GDP in 2007 – a level unseen since the early 1990s.”
He added that “Public deficits have fallen to a record low 0.6% of GDP in 2007, compared with an average of 4% in the 1980s and 1990s” and concluded by saying “together with the Lisbon Strategy for Growth and Jobs, the overall macroeconomic stability and sound budgetary policies have enabled the euro area to create nearly 16 million jobs since 1999, more than in any recent decade, bringing the unemployment rate down to around 7%.”