Challenges of the single currency Indeed, the economic benefits of European cooperation are still convincing. Take the European single market. A wide body of research shows it has clear benefits for each and every member state, with small, open economies the Dutch one benefiting most. Also, there are still strong economic arguments in favor of our common currency.
Stable prices eliminate or reduce economic costs such as those arising from inflation as a result of uncertainty about the outcome of investment decisions, the distortionary effects on the tax system, rising risk premia in long-term interest rates and reduced allocative efficiency of the relative price mechanism and market systems.