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What would be the pros and cons for this from both European and Canadian perspectives?
Came here to ask the same thing but I’ll add the two obvious bits since nobody’s answering yet:
Pro: the Euro is more widely accepted and adding Canada to the list would increase its viability as the only currently realistic alternative to the US dollar (besides maybe JPY but there are many other asterisks here I’m skipping for brevity)
Con: Canada would effectively lose control over its own monetary policy which may lead the 100+ countries who export their own money printing operations to Canadian mints to consider moving operations to the US or EU
Both: it would be easier to invest into and remove money from Canada in large quantities without affecting exchange rates
My understanding it will strengthen euro making exports less competitive
Massive massive trade alleviations - the fact that Canada could export to a economic zone of 340 Million people (realistically more as a lot of smaller economies are linked to the Euro, arouns 500 -700 Million depending on how strict your criteria are).
The direct GdP of that zone is roughly 16.4 Trillion USD, the third largest economic zone after the UD and China but with a much less centralized wealth distribution. (And 17.5 Trillion if you add the closely related economies.
Why is this important/good? Because then Canadian companies could do trade with long term commitments without having to factor in the risk of currency fluctuations. Additioally the economy would be much less prone to foreign pressure on it’s currency.
For Canada this would be especially interesting: They import large amounts of natural ressources, import industry goods but are also far enough away that some drawvacks like outsourcing to lower income areas are not as likely.
And from the EU perspective the additional “stable customer” and “stable supplier” would be golden.
How to make it easier for european tourists and investors.
Not even all of EU current countries have Euro, But that is some goal, afaik Canada shares lots of culture or economy with Europe. Step by step, that’s a plan.
Only if we join the EU.
You are more than welcome to join, if you ask me(and basically everyone I know).
After all you are the country with the closest sea border to France* and also have a close maritime border to Denmark*.
(*: Well, these parts are not part of the EU,yes,but that’s hardly youe fault).
We would be very happy to have you.
And beside the whole “free trade” stuff it also has another often overlooked one: The EU is also a defence alliance (the terms are actually stronger than NATO’s but the later takes precedence) especially in times when NATO is,well, unreliable, that might be a big plus as well.
There’s multiple countries that have unilaterally adopted the euro as their main or secondary currency.
