Default and an exit from the euro would occur well before that.

Euro area countries share a single currency, with

Euroarea government debt

If it hikes the interest rate, the southern euro zone countries will complain.

The country s creditors, for their part, have an incentive to protect the euro and limit the geopolitical risk of a Greek exit from the eurozone.

Define the future governance of the euro area.

Today, over 80 of our business goes for export, mostly to the euro area.

9Looking forward to euro area enlargement ............................................................

Euroarea residents holdings of equity issued in another euroarea country almost doubled in 1997 2005, to 29 of total euroarea portfolios.

The difference between the highest and the lowest price for the Financial Times in nine euro area countries was EUR 0.76 in 2000, EUR 0.47 in 2001 and is EUR 0.00 in 2002.

His aim is to overturn the country s political establishment and upset the European Union by taking Italy out of the euro.

These countries form the euro area and, as well as the single currency, have a single monetary policy conducted by the European Central Bank.

They would be under the control of euro zone finance ministers.

Even assuming that agreement can be found within the eurozone on how to allocate the desired gains and losses in competitiveness across countries, member countries are not centrally planned economies.

Without it, some members of the euro zone might have found themselves in the same difficulties as Eastern European countries.

Several European countries now seem content to force Greece into an outright default and provoke its exit from the euro.

one monetary authority (European Central Bank) one monetary policy

The interest rates on the euro denominated sovereign debt of the twelve euro zone governments are all very similar.

The technical conditions required for the Single Euro Payments Area (SEPA) have been met.

Aeuro area member must have a sufficient degree of real convergence to be able to withstand economic shocks.Progress towards euro area membership is not a race.

Direct debits from anywhere in the euro area

The Euro s PIG Headed Masters

Only EU members can be part of the euro area.

Many people outside the euro area use the euro as a parallel currency, for example for their savings.

And this latter cost would have to be paid by all euro zone countries.

Target zones among the dollar, euro, and yen won't help at all.

Eventually, it heightened tensions within the euro zone.

Within the ESCB, the ECB and the central banks of the euro area Member States form the Eurosystem.

But having lost control of their national monetary policies, euro member countries retain only one macroeconomic instrument, fiscal policy.

ro are variety of c countries in the eu

And the euro is readily exchanged in many countries outside the euro area as well up to 20 of euro banknotes are estimated to circulate outside the euro area.

The first concerns the sustainability of public finances in a number of euro zone member states.

The starting point should be the weaknesses of the euro area s rules and regulations.

The differences between member states were already large a decade ago.

The difference with the largest debtor in the euro area, Italy, was 68.2 percentage points.

This would produce a unified and well supported financial system within the euro zone.

This scenario is buttressed by the likelihood that the US, the eurozone, and China will constitute the three major growth poles at that time.

Backed by the commitment of the euro area Member States, the strong and visible management of monetary policy by the ECB, and the size and power of the euro area as a bloc, the euro has become an attractive world currency like the US dollar or the Japanese yen.

For the past year, China, the euro zone, Japan, Saudi Arabia, and the United States have been discussing these plans among themselves and with the IMF.

Per capita GDP, too, has fallen below the euro zone average.

The euro denominated interbank market Is now fully Integrated, with interest rates throughout the euro area convergent on Euribor but maintain separate budgetary authorities (euro area countries' governments) separate economic policies.

On the other hand, the second phase of the crisis mercilessly exposed the euro s Achilles heel the absence of economic or financial unification within the eurozone.

If the eurozone is to endure, a majority of its citizens, especially in Germany and France, must embrace the euro as their currency.

But consumer price data shows that, on average, euro adoption caused far fewer price increases than is commonly believed, and the overall effect on prices was very small (a one off impact of between 0.1 and 0.3 in 2002).

Population 5 475 791EU member since 1973Currency Danish krone (DKK)in ERM II since 1 January 1999