Of course, Europe's stocks and bonds are not added together just yet but remain denominated in pounds, marks, francs, lire and other currencies. Britain and Denmark have declined so far to participate in the euro. Most Americans remain skeptical or ignorant of the implications of a single currency for Europe, but they will be affected by it. In the long term, the euro is one step in a historic process that may produce political union in Europe. Even in the next decade, if the euro helps improve Europe's economies, the world will benefit.
Improvement is what the euro promises.
A larger capital market will give Europe's people and businesses the kind of financial capabilities that U.S. companies and individuals take for granted. Mortgage-backed securities will finally come to Europe, which in most countries has lower home ownership than the United States. On a grander scale, European companies will get the financing they need to operate globally. So important are financial markets with abundant capital, many traders and frequent transactions that more than 1,000 foreign companies have come to the United States to list their stocks, accepting the regulations of the Securities and Exchange Commission. A large market offers big capital.