History has proven to us that the economy of Great Britain is one of the strongest independent economies that the world has ever seen. One main reason for this continuing success is the presence of one single national currency for all of Britain throughout her distinguished history. This accomplishment is one that cannot be matched by any other European state. After all, whereas France had a single national currency for a brief period during the reigns of Pepin and Charlemagne, England has enjoyed a relatively stable single national currency with an unbroken history of over nine hundred years (Davies, 2). Now, as we approach the twenty-first century a new concept and notion of great potential opportunity has been presented to our country and our fellow European states. The call has been made for economic and monetary union for all European states having market economies. This union would create a single currency for all of Europe and link our economies into one common European currency market. The decision to join or not to join this union is one of great importance to our country, our people, and the future and stability of the European economic theater. As a key player in the new global economy it would be irresponsible of us to enter into such union without first examining its history, goals, principles of functioning, and the impact the union will have on our own national economy.
The history of the economic and monetary union dates back to the end of the Second World War. Countries with market economies adopted the Bretton-Woods economic system which paved way for international monetary stability and established the supremacy of the dollar as the world's principle method of exchange rate stability. Between the years of 1968 and 1969 the breakdown of the Bretton Woods system let to turbulence in the markets and the devaluation of the French franc and the revaluation of the German mark which then threatened the stability of other currencies and price systems.
