Enter the Euro Debate Series Guest analyst, Peter S. Rashish of The European Institute, steps up to the podium to argue that the euro will bring multiple benefits to the European economy allowing the 11 euroland countries to better compete in the global market. Next week in this space, look for a counter argument from Lars Jonung of the Stockholm School of Economics. Share your views on the euro or respond to the opinions of our guest analysts on our Enter the Euro message board or vote in our euro poll. Euro offers boost to continent's economy The January 1 launch of the euro is the boldest move to integrate Europe's fractious nations since the Common Market began in 1957. It is also the biggest shift in the international monetary landscape since the dollar sprang loose from gold in 1971. But perhaps the most significant aspect of Europe's move to a new currency is what it has in store for the continent's economy: lower prices, falling interest rates, vibrant financial markets and job creation. This mini-boom across the Atlantic is welcome news in today's battered global economy. Europe's giant New Year's resolution to forge a new currency will change some bad habits. Think of the United States circa 1980, before the wrenching rounds of deregulation and industry consolidation spawned today's ultra-competitive companies. Add in the European tradition of government intervention in the economy. You then have a pretty good picture of what's ailing Europe today. Companies aren't free enough to hire and fire workers based on consumer demand for products. An abundance of rules stifle new product development and marketing. Despite recent privatizations, bloated public sectors still shut out private investment. Financial markets are organized along the arbitrary lines created by the 15 European Union countries. By taking away both currency devaluation and deficit spending (via the so-called "Stability and Growth Pact") as means to adjust to adversity, the euro will eventually oblige governments to pursue wide-ranging reforms. The act of eliminating 10 currencies also brings about a number of immediate advantages. Consumers will see lower prices as comparative shopping is made easier by pricing in a single currency across Europe. No longer can manufacturers and merchants hide behind French francs or Spanish pesetas to charge different prices in each country. The move to greater use of Internet shopping in Europe will accelerate this trend. When consumers go abroad to shop, currency conversion costs and currency risks will be eliminated. Increased global demand for the euro is likely to bring about lower interest rates, providing a boon to home buyers, for example. Investors will benefit as the euro leads to a shakeout in the European economy. With broader and deeper financial markets, lower interest rates on bonds, and a new round of mergers and acquisitions, there will be attractive opportunities in European stocks. Venture capital should begin to take off, too, injecting vitality into the EASDAQ, Europe's version of NASDAQ. Also, as the euro turns what used to be international trade among European countries into domestic economic activity similar to what happens among the 50 U.S. states, the continent's exposure to external shocks will be reduced, making it a more stable -- and attractive -- investment destination. Europe's citizens also benefit. Collectively, the 11 euroland countries will wield much more power on the international financial stage than they have as individual national voices. In forums like the International Monetary Fund or the G7 summit of leading industrialized nations, the EU will be better able to defend its citizens' economic interests backed by the weight of a single currency rivaling the U.S. dollar for global pre-eminence. The regimen of structural reforms spurred by the euro that will give Europe new domestic economic muscle will also strengthen its claim to a leading role in international financial diplomacy. Finally, workers will benefit. While there may initially be layoffs as companies consolidate, ultimately new jobs will be created by leaner and meaner existing companies, new companies spawned by a more flexible, entrepreneurial economy, and financial markets that channel capital more efficiently to productive uses. Workers worried about their retirement benefits as the baby boom generation matures will also have reason to cheer. The euro should facilitate the development of individual retirement plans along American lines, providing the next generation of retirees with a less uncertain future. While all this lies in the not-too-distant future, in many ways the euro has already proved its merit for Europe's economy. In anticipation of the arrival of the new currency, inflation and interest rates have come down to record levels in countries like Italy and Spain, and budget deficits have shrunk in all 11 euroland countries. That's an auspicious start to Europe's new year.