The euro must contribute to the construction of a single market by facilitating the movement of citizens and goods, ironing out exchange rate problems, creating price transparency, creating a single price market, stabilizing prices, keeping interest rates low and providing a currency that is used internationally and protected from shocks by the large volume of domestic trade within the euro area. It is also designed as a political symbol of integration. The euro and the monetary policy of those who have adopted it in agreement with the EU are subject to the control of the European Central Bank (ECB). The ECB is the central bank of the euro area and therefore controls monetary policy in this area with a programme of maintaining price stability. It is at the heart of the European Central Bank System, which includes all national central banks in the EU and is controlled by its General Council, composed of the ECB President, appointed by the European Council, the Vice-President of the ECB and the governors of the national central banks of the 27 EU Member States. Monetary union has been rocked by the European sovereign debt crisis since 2009. The comparative advantage theory helps explain why protectionism has traditionally been unsuccessful. If a country moves away from an international trade agreement or a government imposes tariffs, it can bring immediate local benefits in the form of new jobs. However, it is often not a long-term solution to a trade problem.
At some point, this country will be at a disadvantage compared to its neighbours: countries that have already been able to produce these items at a lower opportunity cost. For many countries, unilateral reforms are the only effective way to reduce barriers to internal trade. However, multilateral and bilateral approaches – removing trade barriers in coordination with other countries – have two advantages over unilateral approaches. First, the economic benefits of international trade will be strengthened and strengthened if many countries or regions agree to remove trade barriers. By expanding markets, concerted trade liberalization enhances competition and specialization between countries, increasing efficiency and consumer incomes. Neoliberal ideology asserts that international trade is an important factor in the development of poor countries and their integration into the global economy. The promotion of these ideals by rich governments has led them to develop a number of new trade agreements such as CETA and CAFTA. These bilateral, multilateral and regional agreements strongly affect people at all levels of the economy – from producers and workers to processors and consumers – by regulating prices, tariffs, export levels and production methods. While proponents claim that trade agreements bring about sustainable development and economic integration, this is not the case.