On Jan. 1, 2002, 300 million people living in the 12 countries that make up the European Union's so-called "Euro-zone" began turning in their national currencies, initiating the final phase of the three-year transition to the common euro currency which ends in March 2002, when national denominations will no longer be accepted in trade. The region should benefit from the many efficiencies offered by the common currency and that should boost growth relative to what it would otherwise have been. But, the major economic issue is when recovery will begin in Europe where all the major economies (except perhaps for the U.K.) have seen growth rates decline significantly in the past year. Indications from business sentiment in the region suggest that recovery will begin at about the same time in the major countries of Europe, but expectations are for a slow recovery given the structural rigidities that beset many of these nations. |
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