Currency as political instrument: the example of euro

Abstract

European Union’s international position is a topic widely described in political science sphere, but does the euro play part in the geopolitics and delivers any political power, is a topic that lacks attention. The master’s thesis “The Currency as Political Instrument: Example of Euro” ana-lyzes the role of euro currency in European Union’s political agenda, evaluating usage of euro and its role in European Union’s bilateral and international relations and internal political stabil-ity. The master’s thesis aim is to prove that what geopolitical goals Europe can achieve is greatly related to its economic power and euro, therefore the following hypothesis has been established: European Commission seeks to promote the Euro as international currency to expand its political influence in the world. Theoretical framework of the research is based on International Political Economy, that explains the interconnectivity of the economics and political science. Works of Susan Strange, supplemented by Benjamin Cohen and other authors has been chosen to gain insight into the im-portance an international currency brings to its issuer. Second part of work is designated to ex-plain the complex path of introduction of euro and the position it has achieved now. Research part is conducted using the following methods: qualitative content analysis and semi structured interviews. Three fields have been analyzed: the importance of euro in bilateral and international relations and internal political interconnection with the currency. The results of the master’s thesis research show that the European Union in the last years has done extensive work to promote euro’s usage globally. Policies related to currency have helped the European Union to strengthen its position in regions that use euro, or where national currency is pegged to euro. The presence of European Union in Western Balkans has grown, and the Union has achieved strategical outposts around the world in overseas territories of the mem-ber states. It has also strengthened European Union’s internal political relations. Previously stated aspects allow to propose that euro has granted more power globally to the European Union. Wide international acceptance and usage of euro by other states has brought the organization prestige and trust of investors, thereby establishing its position between other global power participants

European Union’s international position is a topic widely described in political science sphere, but does the euro play part in the geopolitics and delivers any political power, is a topic that lacks attention. The master’s thesis “The Currency as Political Instrument: Example of Euro” ana-lyzes the role of euro currency in European Union’s political agenda, evaluating usage of euro and its role in European Union’s bilateral and international relations and internal political stabil-ity. The master’s thesis aim is to prove that what geopolitical goals Europe can achieve is greatly related to its economic power and euro, therefore the following hypothesis has been established: European Commission seeks to promote the Euro as international currency to expand its political influence in the world. Theoretical framework of the research is based on International Political Economy, that explains the interconnectivity of the economics and political science. Works of Susan Strange, supplemented by Benjamin Cohen and other authors has been chosen to gain insight into the im-portance an international currency brings to its issuer. Second part of work is designated to ex-plain the complex path of introduction of euro and the position it has achieved now. Research part is conducted using the following methods: qualitative content analysis and semi structured interviews. Three fields have been analyzed: the importance of euro in bilateral and international relations and internal political interconnection with the currency. The results of the master’s thesis research show that the European Union in the last years has done extensive work to promote euro’s usage globally. Policies related to currency have helped the European Union to strengthen its position in regions that use euro, or where national currency is pegged to euro. The presence of European Union in Western Balkans has grown, and the Union has achieved strategical outposts around the world in overseas territories of the mem-ber states. It has also strengthened European Union’s internal political relations. Previously stated aspects allow to propose that euro has granted more power globally to the European Union. Wide international acceptance and usage of euro by other states has brought the organization prestige and trust of investors, thereby establishing its position between other global power participants