Should the UK join the Euro?

Question

Do you believe that the UK adapting the Euro is beneficial or not? Elaborate on your answer from an economic point of view.

Answer 1

I'm not bothered either way really. It's about even.

The main argument for not joining is that the UK loses control of its own interest rates, about the only 'lever' that the government has to control the economy.

An interest rate set to suit the whole EU might not suit the UK. At the moment, unemployment rates are low. The government needs to consider how they would pull out of another early-80s style unemployment crisis. Dropping interest rates might be the only way to stimulate business. If the EU doesn't let you do that, you can get 'stag-flation', a combination of stagnation (lack of economic growth) and inflation, which France and Germany haven't fully got out of.

You can't stimulate business any more using government subsidies, because they aren't allowed by the EU or the WTO (World Trade Organisation).

Interest rates obviously have a strong effect on house prices and also affect business profitability and whether international companies see more or less profit from setting up in the UK or somewhere else.

Its all a question of the supply and demand for money, as far as borrowers are concerned. When it comes to mortgages and things, higher interest rates means less demand for loans, but a higher cost if you do actually take one out.

Arguments in favour of joining the euro are that there would be no more foreign exchange transaction fees, both for businesses and when you jet off to Spain, accountancy would be simpler for multi-national firms and for firms that import/export goods or services to/from the present EU zone.

Answer 2

If we don't bypass with the Euro, then faster or later we will ought to bypass with the U. S. greenback. Britain has no organic factors left different than coal, so if we are to outlive as a blended united states of america, we could desire to connect with different international locations. while Scotland & Wales bypass self sufficient, they're going to connect the Euro promptly away, and sign in to all the ecu Union treaties. As the two could be classed as damaging economically, they could additionally attain the advantages of the entire ecu grants & investment that's available. England by utilising itself, will only wither and die as that's swamped by utilising the immigrants and the undesirable criminal trash that different international locations will offload. The irony at the back of the entire Scots/Welsh independence ingredient, is that it exchange right into a Scottish King (James VI) who created the united kingdom in the 1st place.

Answer 3

I agree, the pound is one of the most stable currencies, it doesnt need to join the Euro. Plus I think the English would rather like to keep thier pride about being English, not European

Answer 4

UK has a strong economy and need not join the EU.

Answer 5

no way they should just buy out the euro and make the pound the money of europe.

Answer 6

Hope not.