WRITTEN QUESTION E-1883/03 by Christopher Huhne (ELDR) to the Commission. Trade impact of euro.
Date: 2003-06-06
Institutions: European Parliament, Provisional data
Subjects: Economic and Monetary Union, euro, euro area, impact study, trading operation

C 58 E/106

Official Journal of the European Union

EN

6.3.2004

The Honourable Member will understand that for reasons of non-discrimination, entities from both the
private and the public sector have to submit audit certificates. However, public entities can have their audit
certificates delivered either by an external auditor or by a public competent officer (see also Article 14 of
the above mentioned Regulation). The latter will certainly reduce the costs related to the audit certificates
for public bodies.

It should also be noted that the costs of audit certificates are fully covered by the Community funding
contribution under the management activity foreseen in each project and represent only a minor portion
of the total costs of the projects, the great bulk of which is devoted to carrying out the research work.

(1) OJ L 355, 30.12.2002.

(2004/C 58 E/121)

WRITTEN QUESTION E-1883/03

by Christopher Huhne (ELDR) to the Commission

(6 June 2003)

Subject: Trade impact of euro

Will the Commission summarise the conclusions of any major studies, including its own, on the impact of
the euro on trade within the euro-area? Will it estimate the size of any increase in trade as a result of the
introduction of the euro?

Answer given by Mr Solbes Mira on behalf of the Commission

(14 July 2003)

Several studies have been made on the impact of the euro on trade within the euro-area, although the
period since the introduction of the single currency is still short and the total effect has probably not yet
occurred. These studies find a significant increase of trade as a result of the euro-introduction.

Looking at the euro-area Barr, Breedon and Miles (1) come to the conclusion that the Economic and
Monetary Union (EMU) has already led to a 29 % increase in the level of trade between euro members.
Also using data from European countries Micco, Stein and Ordonez (2) find a sizeable effect for the bilateral
trade between the members of the Eurozone: the EMU effect is estimated to have increased trade between
12 and 19 %. Finally, Bun and Klaassen (3) conclude in their study on the effect on trade an increase of 4 %
in the first year and a projected long run effect of about 40 %.

Recently the United Kingdom Treasury has published several background EMU-studies to inform the
assessment of the five economic tests on UK-membership of the single currency. In one of these studies,
EMU and trade, an overview of studies on the effects of currency-unions on trade and specifically of EMU
on trade can be found.

(1) Barr D., F. Breedon and D. Miles, Life on the outside: economic conditions and prospects outside Euroland in

Economic Policy, 2003, forthcoming.

(2) Micco A., E. Stein and G. Ordonez, The currency union effect on trade: early evidence from the European Union,

Inter American Development Bank 2002.

(3) Bun M. and F. Klaassen, Has the euro increased trade?, Tinbergen Institute Discussion Paper No 02-108/2,

University of Amsterdam 2002.