Capacitatea Monedei Unice Europene de a Pregati Statele Membre pentru Fenomenul Globalizarii
The Ability of the European Single Currency to prepare Member States for Globalization Phenomenon

Summary/Abstract: One of the main characteristics of globalization has been the entry of new actors on global markets. The rapid integration of some emerging economies in Asia and Central and Eastern Europe after the collapse of the Soviet Union led to increased global competition, leading also to significant changes in world trade patterns. Globalisation faces the world’s countries with new challenges, and they are forced to adapt to the new conditions imposed by global markets. The aim of this paper is to analyse the extent to which the euro supports the member states’ efforts to adapt to the challenges of globalization. Literature emphasizes two points of view. According to the first acception, a country is more prepared for globalization the more flexible it is, both regarding the functioning of markets and in terms of policies adopted. Thus, exchange rate flexibility is regarded as the ultimate solution, which means the country should not be part of a monetary union. According to the other acception, a country will be more prepared to face globalization if it is part of a large monetary union, like the Euro area. This paper analyses the way in which globalization affects the Eurozone member states and how they can maximize the benefits from participating in this monetary arrangement. We will firstly present the main features that a country should have for it to be fit for globalization, and then we will analyse whether the euro meets these features.

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