Does the Euro make investing in Europe easier?
All the Euro zone stock exchanges decided that shares were to be traded and deals to be settled in Euros from January 1 1999. This means UK investors looking to invest money across Europe face a much smaller currency risk than previously having to deal with only one foreign currency while being able to invest in a wide variety of national stock markets. It will also make it easier to compare corporate performance across sectors and across national boundaries. The removal of currency risk for companies operating in and across different countries in the Euro zone eliminates a large chunk of companies transaction costs. In theory this should translate directly to improved profits and higher dividends for shareholders. There have also been substantial moves towards the creation of a pan-European stock market. By the end of the first decade of the 21st century it is not impossible that there may be only one stock market in Europe. In future it may also be easier to buy a supplementary pensi
