There are also some questions, say economists, about the euro
zone's rigid membership requirements. Countries must meet certain
targets for inflation, budget deficits, and long-term interest
rates, but no one is quite sure what will happen if a member
violates the targets. Would
Germany really be expelled for
exceeding the budget deficit limit? And, if it did, could the euro
survive without the strongest economy in Europe?
And that still doesn't take into account what could happen in the
next decade when former communist countries like
Poland, Hungary,
and the
Czech Republic - with their much less developed economies -
are scheduled to join the euro.
"One of the things that has made the euro work is that the members
have accepted the ideas of free movement of capital and goods and
services across borders," says Achuthan. "Can that mindset be
extended? It's a question that no one has an answer to yet. I'm not
sure it's a question that a lot of people have started asking."
Until then, officials like Achuthan at companies across the U.S.
and
Europe will appreciate what has worked. It's a whole lot better
than preparing 12 sets of financials.
KEEP THE CHANGE?
Talk to any traveler who spends substantial time in Europe, and
each, no matter how experienced and savvy, has the same story. They
have local currency left over from the switch to the euro, and not
only will businesses not accept it, they can't find anyone to
change it to euros.
"I was pretty surprised the first time I walked into a shop in
Belgium, and the owner wouldn't take my Belgian francs," says Joel
Mokyr, an economic historian at
Northwestern University in
Evanston,
Illinois. "I've got all these Belgian francs at home.
What was I going to do with them?"