GCC States Learn Lessons From the Eurozone Crisis

For more than half a century, the European Union’s course of action has been the most successful global role model for regional integration. Therefore, the Gulf Cooperation Council (GCC) was expected to benefit from the European experience and study the requirements of each of its stages. Ever since the council took the decision to issue a single Gulf currency, while making great use of the European experience with the euro, it resorted to some of the clauses of the Maastricht Treaty, which had paved the way for the single European currency. 

After the emergence of the sovereign debt crisis in the EU and the subsequent doubts surrounding the position of the Euro as single currency, it was likely that this would affect the single Gulf currency plan.

Gulf leaders have, however, indicated in their statements that while the Euro’s situation might delay the single Gulf currency, it will not cancel it. They added that they are trying to benefit positively from the Euro crisis, in favor of their single currency. The difference between the conditions of the EU, on the one hand, and those of the GCC, on the other, are obvious. The sole similarity between them is the idea of integration. Therefore, after the issuance of their single currency, the Gulf countries are expected to face challenges that are very different from those associated with the Euro crisis today.

Read more: http://www.al-monitor.com/pulse/business/2013/01/gcc-states-learn-lessons-from-eurozone-crisis.html#ixzz2JRSZpeaX