Final answer:
Eurocommercial paper is a short-term debt instrument that is negotiable, denominated in euros, and issued at a discount, making it an efficient financing tool in the eurozone.
Step-by-step explanation:
Eurocommercial paper is a type of short-term debt instrument that is typically denominated in euros and issued on a discount basis. It is a popular money market instrument used by corporations to obtain financing for short-term needs. This paper is indeed negotiable, meaning it can be transferred from one party to another before it matures.
Since economies have become increasingly international, the move towards the use of fiat money like the U.S dollar and the euro has intensified. In the case of the European Central Bank, which determines the monetary policy for euro nations, individual countries do not have sole control over their monetary policies, which can be an issue for countries like Portugal when ECB decisions do not align with their preferred policies.
That said, it's essential to recognize that eurocommercial papers' characteristics are its negotiability, euro denomination, and issuance at a discount - making it an attractive option for short-term financing in European markets.