Impact of the Introduction of the euro on the Financial Market

master's thesis

• Author: Isabella Rakonić
• Mentor: Boris Vujčić (mentor)
• Committee member: Boris Vujčić (predsjednik povjerenstva)
• Committee member: Ana-Maria Boromisa (član povjerenstva)
• Committee member: Josip Lučev (član povjerenstva)
• Granter: University of Zagreb; The Faculty of Political Science; Zagreb
• Defense date and country: 2022-09-20, Croatia
• Scientific / art field, discipline and subdiscipline: SOCIAL SCIENCES; Political Science

Abstract

Isabella Rakonić wrote a master thesis under the title “Impact of the introduction of the euro on financial market”. The structure of the paper starts with an introduction, where the concept of the Economic and Monetary Union (EMU) is elaborated. It is explained that the euro is the common single currency of the members of the European Union. Not all members of the European Union do not use the euro, like Croatia. The euro is the most tangible evidence of European integration: it is used by around 341 million people every day, which means that it is the second most used currency worldwide. Since Croatia is in the proess of introducing the euro, the author of this paper believes that the topic of the impact of the introduction of the euro on financial market is of great importance and topical in 2022.
This thesis consists of five chapters. After the introduction, the second chapter defines the European Union and the obligations of the member states. Certain criteria must be met by every country that wishes to join the EU. They have get close to the standard and monetary policy of the already existing member states. The conditions that the state must achieve are regulated within the European Union in order for the European Union to remain stable. In the third chapter, the paper focuses on the introduction of the euro and the eurozone. It is explained that with the help of the project on European and monetary union, the European monetary system was created along with the creation of the European currency unit. It is actually a unit of account because member countries have agreed to keep their own currencies within a set range of price volatility. Chapter four puts focus on the introduction of the aforementioned in Croatia and an analysis of the current situation. After joining the European Union, the process of entering the eurozone and taking over and using the euro begins. In order to take the mentioned path, each country must fulfill additional conditions in order to enter the eurozone, which is manifested through the convergence criteria established by the Maastricht Treaty. The aforementioned talks about the economic conditions by which the readiness of each acceding member of the Union to participate in the monetary and economic union is assessed. The countries entering the European Union and the Eurozone have to face many complex processes that they have to satisfy, and then all the advantages and disadvantages. The author devoted an important chapter to researching advantages and disadvantages of introducing the euro, with a deep analysis of the impact of introduction of euro to other countries who previously introduced it.
The last part of the paper contains concluding considerations. In the conclusion it is emphasized that the countries entering the European Union and the Eurozone have to face many complex processes that they have to satisfy, and then all the advantages and disadvantages.

• Keywords: Euro; European Union; Croatia; Financial Market; Eurozone; Advantages; Disadvantages
• Language: english
• URN:NBN: urn:nbn:hr:114:353692
• Study programme: Title: Master of European Studies; Study programme type: university; Study level: graduate; Academic / professional title: MAGISTAR EUROPSKIH STUDIJA (MAGISTAR EUROPSKIH STUDIJA)
• Type of resource: Text
• File origin: Born digital
• Access conditions: Access restricted to students and staff of home institution
• Created on: 2023-01-23 09:35:54