International Programs

This thesis is the analysis of the effects the introduction of the Euro as a common currency had on Spain from 1994 to 2001. Spain was one of the first nations to join the European Union and as a result is an exceptional country to base research off of. Not only was Spain one of the first countries to join the EU, but also prior to the introduction of the Euro, Spain was a very dynamic developing nation with a weak economy, a factor that drastically changed after the introduction. In general, economic benefits are expected to be seen as a result of the introduction of the Euro. Although this is the case, there are many factors, which will be looked into that could be negatively affected by a common currency such as the independence of individual countries, which are trading partners with Spain and their economic strengths, cultural differences adversely affecting trade as well as issues of nonconformity. The research for this thesis is based on both the microeconomic and macroeconomic factors of Spain as well as the entire European Union. Surveys of the financial situation of Spain for similar periods before and after the introduction will be conducted and compared in order to assess whether Spain was able to capture the potential benefits of a common currency. Additionally, factors such as the role of the European Central Bank and inquiries into the performance of various stock market exchanges will be used to justify the findings.