As presented in Global Perspective 3-3 earlier, many countries in the European Union are complaining that the euro has weakened the financial advantages that firms previously had in stable economies. The euro area’s three largest economies, France, Germany, and Italy are now struggling with how to stimulate economic growth. Germany, for example, is battling with unfriendly growth rates and double-digit unemployment; Italy entered its second recession in two years in the first quarter of 2005; France expressed its complaints through its rejection of the European constitution. According to a government minister in Italy, the euro should be blamed for Italy’s poor economic performance and he even advocated reintroducing the lira. So the question is, can the united currency be unified across the EU? Ideally, currency zones should be solid and homogenous enough to exhibit little regional variation in business cycles. However, the current one-size-fits-all monetary policy would possibly leave some countries in the region lingering in recession, while others experience rapid growth. Should EU make any changes to its currency system? Or what needs to be done to adjust the EU problem?