News Article

South America Wants Its Own Euro

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SÃO PAULO, Brazil (22 May 2000)–Mercosur, the large and successful common market of the South America, wants to establish its own monetary union similar to the European Union’s euro. The announcement was made by the Brazilian president during the opening of the annual trade conference. A euro of its own could however prove to be […]

SÃO PAULO, Brazil (22 May 2000)–Mercosur, the large and successful common market of the South America, wants to establish its own monetary union similar to the European Union’s euro. The announcement was made by the Brazilian president during the opening of the annual trade conference. A euro of its own could however prove to be difficult for Mercosur. For starters, the common market has no regional leadership like that played by Germany in the EU; leadership characterized by a strong economy and monetary stability. Secondly, while the EU enjoys a relatively healthy economic situation, Mercosur countries currently find themselves in a slump.
On 1 January 1995 Brazil, Argentina, Uruguay and Paraguay formed the Mercado Comun del Sur, better known today as Mercosur. Both Chile and Bolivia are expected to join the common market by 2004 and 2006, respectively. Today, Mercosur is the fourth largest geo-economic region in the world with a Gross Domestic Product (GDP) of US$1.146 billion, following NAFTA (US$9.556bn), the European Union (US$8.361bn) and Japan (US$4.127bn). Combined, Mercosur’s members represent 70% of South America’s area, 64% of its population and 59% of Latin America’s GDP. (JW)

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