Will Britain ever join the Euro? wouldn't it be better?

Answer 1

Joining the euro would be, in a sense, like going back on the gold standard: Britain would lose its independence of monetary policy. It could not raise or lower interest rates (bank rate) on its own -- that would be a matter for the European Central Bank.

There would be two advantages: lower interest rates and elimination of the foreign exchange cost in transactions with other countries in the euro zone.

Most of the objection to joining the euro is nationalist in nature. If the EU had arranged for each note to bear on its face the traditional national style -- the way their coins are minted differently for each euro country (and that includes Andorra, the Vatican and San Marino, by special treaty) -- most Brits probably wouldn't have minded the switch.

Sterling is no longer a reserve currency. The dollar and euro are. Being a reserve currency means that other countries use your currency (instead of or in addition to gold) to back up theirs. You get an interest-free loan from that. On the other hand, Sterling is -- for the next several years anyway -- a petroleum currency, which means it's overvalued. No wonder London is the most expensive city in the world. It also competes with the dollar. George Bush having depleted his country's Treasury and paid out the Clinton surplus to his rich pals as tax cuts and borrowed heavily from China, the US is having to raise interest rates. (Already US house prices are falling.) Britain won't be far behind.

Being in the euro zone would insulate Britain more from America. For better or worse.

Answer 2

There appears to be a general reluctance to join by all political parties in the UK. Perhaps this is because some monetary control (manipulation) would be lost, and would be very difficult to regain.

This loss of monetary manipulation would require some very hard credit control measures, and perhaps the property bubble might burst.

It would be a very difficult decision for a chancellor to admit that in fact the so called independence of the Bank of England monetary policy is not as independent of political influence as you might be led to believe.

If it were truly independent, then offloading those responsibilities to a separate independent body would be of no concern to any Government.

There is a nationalistic argument that a lot of people put regarding retaining Sterling versus the Euro. People ought to realise that market protectionism, and nationalistic barriers to entry or exit of a market are in the long term likely to damage jobs, prosperity, and in the end the very nationalistic traits you wanted to keep. It is a self defeating policy to protect yourself from change, which would benefit everyone in the long term after some short term pain.

I think Britain will join the Euro, and it will be seen to be better after everyone gets used to it. In the short term, the change may cause some pain.

Answer 3

When Iran opens thier petrol trading center using the Euro instead of the dollar ( which the've been planning for a few years now), all the major players in the region will start to buy their oil in Euros.

Already, Russia and China are interested in the plan.

At that time, Britain could gain significant economic advantage by moving to the Euro, and I imagine they will.

The only problem being that the Brits have this idea that as they are an island, they are independant, and want to stay that way.

In the long run, not adopting the Euro could be the downfall of the country.

Answer 4

particular particular particular-it might nicely be referred to as the Europound. the sole reason we are actually not interior the Euro is via the fact the government needs to help the banks fleece the British people. each and every ingredient imported from Europe has to pass for the period of the substitute fee equipment-banks make a killing. travelers vacationing the united kingdom from Europe ought to pass for the period of the substitute equipment-banks make a killing. We pass on trip in Europe ought to substitute funds-banks make a killing. undertake the Euro and a few of those "surprising earners " for the banks disappear. value comparisons with Europe could be like for like, so no rip off Britain by making use of merchants.

Answer 5

I don't agree that you lose sovereignty when you lose /change your currency. I am English but live in northern Spain. My neighbours are all different nationalities yet are all immensely proud of being German/ French/ Dutch etc. We all use the Euro naturally and it works great. We can travel anywhere in the EU (which is huge now ) and use the same currency. Can you imagine how that feels? No one over here feels they have lost out. It's only the English that continue to debate it. For more than 25 years the UK has dithered over the EU. It's time to either commit entirely or get out.

Answer 6

From an economic point of view it is better as it would reduce costs (due to companies not needing to exchange currancies amongst other things) potentially it could also increase competition (again reducing costs) as it would be easier for foreign companies to set up here and so increase jobs.

However our currency is a huge part of our heritage and national identity and personally I believe that it very important. Whilst I understand a lot of the arguements for Europe and the EU and in principle agree with them I believe that there would come a point where we would lose our identity as "British" and so I hope we retain our money.

Answer 7

doubt it
as for supporting it - I dont.although i do like the fact its one currency when i travel.
I worry that more and more 'new' states and under-developed countries are joing the EU thereby weakening the Euro.

Imagine if the moeny you earnt, spent and saved was influenced by the behaviour, size, earning power of everyone else who lived on your street. If you had to support them, spend only what they could afford, save to help them, buy your products and service where they tell you etc. then the EU could end up being a little like that.
We are currently still a top 5 economic power in the world, these newer countries will only dilute that standing in my eyes.
But what do I know
c

Answer 8

the people that want the uk to join the euro are big bussiness,i for one cant understand why they dont run side by side..most in the uk still want the £ so keep it and get paid in it..and leave euro to big bizz..and if its so good why do the french and italians want to revert back??(but cant)

Answer 9

I hope not

No

we're rapidly losing all quality british things, lets not lose our decent currency aswell. lets have an independent britain and not one that just mimics all the other euro trash

Answer 10

The british look at the numerous mistakes in europe, and obviously do not want to be a part of that.