An article in the Economist magazine in late 2012 observed:

The euro was meant to buttress the single market, reducing transaction costs and removing the risk of competitive devaluation.

Could it now destroy the single market instead?

a. How did the euro reduce transactions costs?

b. What is a “competitive devaluation”? Is not being able to devalue their currencies always a benefit to euro-zone countries? Briefly explain.

c. If countries abandon the euro and return to using their own currencies, how might this action “destroy” the single European market?