Main Costs and Benefits of Monetary Union in the EU Research Paper

Main Costs and Benefits of Monetary Union in the EU - Research Paper Example Countries around the world do not have many choices when having to develop their relationships with other countries in the international community; the participation in unions and organizations of various forms is then proved necessary especially if the improvement of the political or financial position of a country is required. European Union has been the most important example of the specific practice. Despite the fact that the establishment of the Union was related to the interests of specific countries, soon its priorities were changed (Kotlowski, 2000). Through the years, the survival of the European Union has been related to its enlargement; countries from all the region’s areas had been called to participate in the Union – even if the relevant terms and conditions have not been appropriately evaluated in advance, an issue that has been revealed gradually especially within the context of current financial crisis. The current paper focuses on the examination of ben efits and costs of monetary union in the European Union zone. The case of two countries – Britain, a country that has been among the first members of the European Union and Bulgaria, a country that is expected to join the European Union zone – is used as an example for describing the context of the monetary union in Europe. The costs of the specific initiative are also evaluated – as possible – and are critically explained – in terms of their role in a country’s decision to enter the eurozone. The benefits of monetary unions have been traditionally regarded as the reason for the development of these unions worldwide. However, the effects of  these initiatives need to be taken into consideration before taking the relevant risk.