Carrying Its Weight

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BUSINESS ACTIVITY For Germany's TWD Group, a midsize textile manufacturer, the euro has been "all positive," says CEO Yorck von Schmeling. Many European business executives agree. Executive vice chairman Benjamin Cohen of the French hotel company Accor says the absence of exchange-rate risk makes investing in places like Italy and Spain easier: "The element of chance has disappeared." Trade activity has also increased: two studies by the Inter-American Development Bank show that countries joining the euro saw a boost of 8% to 16%.

INTERNATIONAL ACCEPTANCE The euro isn't about to take on the dollar as the world's favorite currency. Euro-denominated bonds have grown from about 20% of the global total in 1999 to 30% today, but dollar-denominated bonds have remained at about 45%. The euro has also failed to catch on in foreign-exchange transactions. Globally, it accounts for 20% to 25% of the market, about the same as the national currencies that made up the euro.