Euro Generation Mechanism Theory

The thesis aims to study how the interaction of the states interests demands leads the birth of Euro through the methodology of international political economics. It tries to illustrate the mechanism of the birth of Euro from the three aspects as historic logic, intrinsic mechanism and framework conditions. The First Part analyses the historic logic of the birth of Euro. Chapter 2 states the historically logic relations between European Integration and Euro. Chapter 3 indicates that Euro is an inevitable result of the development of international monetary system, and at the mean time is the best strategy for Europe to react to its regional monetary relations. Chapter 4 tempts to reveal the implications by the success and failure of monetary unions in history on Euro, and it is believed that the final success of Euro could be only guaranteed by the coordination of national interests based on the long term cooperation, which is the very reason for the birth of Euro. The Second Part of the thesis analyses the intrinsic mechanism of the birth of Euro. Chapter 5 states that facing the strengthening and deepening economic globalization, the regional monetary cooperation and the construction of single currency in Europe is helpful for European countries to better pursue their national interests. Chapter 6 analyses that the economic benefits of Euro, as the major reason for its birth, have developed Europe into a real integrated economic entity. Chapter 7 states that the political benefit of Euro is that it has consolidated the European security and laid a foundation for Europe to seek for further development. The Third Part of the thesis analyses the framework conditions for the birth of Euro. Chapter 8 states that the European identity, the convergence of institutional structures in Europe and the convergence criteria for Euro form the basic framework conditions for the birth of Euro. Chapter 9 indicates that the European legal and organizational construction have served as the legal and organizational guarantee for the birth of Euro. Chapter 10 states that the European common monetary policy has led the Euro to become one single European Currency with national characteristics. In a word, the thesis tries through its analysis and studies, to demonstrate that Euro, as the result of the European Integration based on the common security interest, is at the same time one strategic decision commonly made by the European countries in consolidating the common security, and in the pursuit of common development interests and even hegemony interests.