The purpose for the introduction of a single currency, is the economic and political binding of the EU countries. A single currency is providing stability in all levels and promotes an extensive integration of the countries involved in it. It also promotes fast economic growth, which is the main aim of most governments. It opens the way to higher living standards and better public services. A major policy innovation such as opting "in' to the single currency could not be justified, if there was not a good chance that it could raise the rate of economic growth. The single currency should also help to keep the rate of price inflation down, another main objective of government policy. Low inflation is one of the means to higher economic growth.
    The other ways in which full EMU and the single currency can be expected to raise the growth rate, is through the lower cross? border transactions costs, the increase in trade within the single currency market, the lower interest rates, more business investment, and greater competition on prices and products.