European Union
Transition left the economy of the European Union in a cautiously optimistic state during the early 2000s. The most difficult years were 2000-2001, precipitating the worst years of the American recession. The European Union introduced a new currency on January 1, 1999. The euro, which was met with much anticipation, had its value immediately plummet, and it continued to be a weak currency throughout 2000 and 2001. Inflation struck the Eurozone for a few months in summer 2001 but the economy deflated within months. In 2002, the value of the euro began to rapidly rise (reaching parity with the US Dollar on July 15, 2002). This hurt business for companies based in Europe, as the profits made abroad (especially in the Americas) had an unfavorable exchange rate.
France and Germany both entered recession towards the end of 2001, but in May 2002 both countries declared that their recessions had ended after a mere six months each.However, some European Union countries - including the United Kingdom - managed to avoid sliding into recession during this period.
Read more about this topic: Early 2000s Recession
Famous quotes containing the words european and/or union:
“Unsophisticated and confiding, they are easily led into every vice, and humanity weeps over the ruin thus remorselessly inflicted upon them by their European civilizers.”
—Herman Melville (1819–1891)
“The rage for road building is beneficent for America, where vast distance is so main a consideration in our domestic politics and trade, inasmuch as the great political promise of the invention is to hold the Union staunch, whose days already seem numbered by the mere inconvenience of transporting representatives, judges and officers across such tedious distances of land and water.”
—Ralph Waldo Emerson (1803–1882)