Save euro, save globalization

By Xiao Gang
China Daily, February 11, 2011

In the wake of Europe's woes, more and more voices from European countries and beyond have been calling for the euro to be abandoned. Surveys in France show that more than 35 percent of the respondents desire the reintroduction of the French franc, and in Germany there are strong voices calling for the return of the Deutschmark.

From historic, economic, political and global perspectives, the destiny of the euro is not only closely associated with Europe's monetary union and the eurozone itself, it is also tied to the future of globalization.

To some extent, saving the euro is akin to saving globalization. The creation of the euro can be seen as one of globalization's greatest achievements over the past decades.

The process of European integration began with the establishment of the European Coal and Steel Community in 1951, and the signing of two treaties in Rome on March 25, 1957 by Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. The treaties established the European Atomic Energy Community and the European Economic Community.

The Merger Treaty signed in Brussels, Belgium, on April 8, 1965 combined the executive bodies of the European Coal and Steel Community, European Atomic Energy Community and the European Economic Community into a single institutional structure.

With its members growing and its geographical scope broadening, the European Union had 15 member countries by 1997.

Seven years later, the EU reached a new milestone when it formally admitted 10 new members. This move added 75 million people, created the world's largest free-trade bloc and ended the continent's division.

The initiative to build Europe's monetary union emerged in 1970, but it wasn't until 1992, when the Maastricht Treaty was signed, that the roadmap and timetable for creating a single currency were determined.

The euro has been largely successful in many areas over the past 12 years since its debut. The EU is a great example of an integrated security community with a single economy. It has drawn on historic lessons and ended the wars among European countries. Moreover, the single currency is dedicated to liberal democratic governance and a cross-border free market.

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