ABSTRACT
Both the European Union (EU) and the common market arose and operated successfully before the introduction of the euro. And in the future, too, they can function without it. Of course, the existence of many currencies causes complications and costs, just like the fact that the EU is made up of nation-states, using various languages. As long as nation-states are the main centres of citizens’ identity, and sources of legitimacy for authorities, the liquidation of national currencies creates more problems and threats for European cooperation than benefits. A eurozone member state, which for some reason loses competitiveness, suffers because of the lack of its own currency and the resulting inability to devalue. For a eurozone country that has problems with economic competitiveness, the dissolution of the currency union is more complicated: The process of leaving the eurozone itself is dangerous, as it threatens a banking panic.
