EMU has eliminated nominal exchange rate volatility and exchange rate risks within the euro area. This benefits not only trade between, and economic growth in, the euro area countries but also the economic development of other European and non-European countries. In addition, foreign direct investments into the euro area economies should be promoted, as these investments are negatively affected by exchange rate volatility.
The advantages of economic integration afforded by the Single Market process are enhanced by the elimination of the transaction costs of exchanging different currencies, the direct result of the introduction of the euro. Furthermore, the single currency will make prices across the euro area directly comparable, which should increase competition and hence efficiency and economic growth in the euro area.