Britain and the Euro

[Anarcho-Socialist]

Poll question: Britain and the Euro

What do you think of the European Single Currency (€)? Should Britain join EMU? Why, or why not?

[BrklynLiberal]

1. I know this may be somewhat self-defeating as an American, but I am

for anything that will help bring about the downfall of Bush, and I think this will contribute to it.

[McKenzie]

2. a referendum on joining is madness

it might seem "right" to let people have their say but the issues are far too complex to allow voting against, or for I suppose. "I want to keep the Pound coz it's green an' it's got the queen's head on it donit?" No thanks. I don't fully understand the issues and I'm not exactly dim.

Multiple currencies in a single trading block are a recipe for chaos and currency speculation. And certain people have a vested interest in doing anything to stop the ascendancy of the euro...

[tjwmason]

3. I agree on the referendum

I did a fair dash of European Integration Studies whilst at university, and the effects are potentially enormous (either positive or negative); applying criteria like "we're used to the pound" is a nonsense, yet that is what will end up occuring.

F.W.I.W. I oppose membership. The British economy is too far out of synch, especially as concerns the structure of our debts. We tend to have variable interest rates, whereas the continental economies tend towards fixed interest rates - this means that changes in interest rates made for the balance of European economies will constitute an asymmetric shock to the British economy.

[non sociopath skin]

4. Thanks TJM for that excellent insight.

I'm not totally economically/ mathematically illiterate but I do need things spelt out for me in layman's terms as, I suspect, do most of us. And this is exactly what doesn't happen.

The Tories, of course, don't want us to know enough to be dangerous - no change there - but I feel that the Bliarite ChristDems and the LibDems are being somewhat less forthcoming than they could be too. This allows such as the Baggy Trousered Misanthropists to play the "Save-The-Queen's-Picture" scam.

Oh for an open government which treats us like living, breathing, thinking adult beings ...

The Skin

[tjwmason]

6. Not wishing to quote Thatcher too much

but "economics is too important to be left to economists"; but on the other side it is also complex, and especially when dealing with a new development one can never be sure what the outcome will be.

The Euro presents large potential benefits, and large potential costs; and pretty much nothing about it is certain.

[T_i_B]

5. I'm a moderate Euro-sceptic

Whilst I'm hardly in agreement with the UKIP about the EU I do think that it would not be in Britain's economic interest to join the Euro.

I'm not really in favour of pegging currencies anyway, the ERM is a good example of why I think that.

I'm glad this is a decision that will need a referendum, it's too important not to have one and besides, the British public would vote no at the present time and that would suit Euro-sceptic little me just fine!

[RogueTrooper]

7. Sterling is linked to the Euro

I have recently moved to the Eurozone but I still have to send money back to the UK; consequently the exchange rate has become something that I started to watch closely. When I first moved I was worried about volatility of the exchange rate.

Not so...

Compared to the movement of other currencies the rate between the Euro and Sterling has hardly changed in the last three months. And this has been during a time of extreeme volatility in the currency markets.

Have you ever noticed that, in the EU, anti-euro sentiment is most felt in the countries that have large oil reserves. funny that.

[Anarcho-Socialist]

8. I'd like your opinion on the Republic of Ireland's experience

in the Eurozone. Has the single currency benefited the Irish economy? Or hindered the economy? Or is it that things have been the same regardless of the change from the Punt to the Euro? Thanks.

[RogueTrooper]

10. Yes, it has

Although when the change over happened there was a lot of small scale profiteering: Shops and other commercial services putting their prices up with the change over. Now, this happened all over Europe ( you may remember the legions of British holidymakes made angry when they found their favourite continental holiday spots were not as cheap as they once were ) but it is less a product of "shifty continentals" than human nature as the same sort of profiteering happened when the Britain went decimal.

The Irish economy is booming. I have never seen so much building work in my life as I have seen in Dublin. The skyline is dotted with numerous large cranes. There is more work than there are people in Ireland which has created a huge need for foreign labour. This foreign labour has mostly come from central and eastern European countries ( and there is friction between "old Ireland" and "new Ireland" because of it ).

Now, whether things would be diferent if the Irish pound ( you should only use punt when you are speaking Gaelic ) has been kept: I don't know to be honest. From what I can see the UK and the Irish economy seem to be very close in that they have similar banking and credit laws ( granted Ireland's credit law's are less "American" than Britains ) and our economic cycle seems to be in synch. There is a great deal of enthusiasm for Britain joining the Euro in the Republic: A product of how interdependant the Irish economy is with the UK economy ).

Until I moved to Ireland I used to think that Brtain would find it dificult to cope with the Euro. After 4 months in the Ireland I am not so sure about that.

A-S, if you need anymore information just let me know and I will see what I can do.

[Anarcho-Socialist]

11. Thanks, RogueTrooper

:toast:

[D-Notice]

9. Other:

I've always said I don't care what my money's called, as long as I don't live in poverty

So, I probably won't be voting in the referendum at all... Unless I spoil my ballot my ticking both boxes!

[sweetheart]

12. Britian should join the euro

London will lose it status as europe's preeminent financial center if
it does not join the euro soon. The cost to britain will be huge of
missing out, as joining later will not be the same.

In my own experience of multinational business within the EU, the euro
would have saved one past business a lot of headaches and eventual
bankruptcy. We had 5000 customers in europe when the currency of the
customers started to appreciate against the pound. As the sterling
revenues fell, we had to sack people, until it finally so affected the
bottom line, the company was shut down.

The instability of floating currencies kills cross-border trade, and
this opportunity cost is not factored in to the keep the pound campaign.
It seems the small-island keeping pound thinking does not have the
bravery to engage and deal with europe as an equal partner, as a
primary partner in the euro.

There is no alternative. The economy is fluffed up with the public
sector spending sucking the oxygen out of the private sector. In terms
of long term competetiveness, the pound is no option.

[Anarcho-Socialist]

13. You've made some interesting points, I'd like to ask your opinion

Do you think the Eurozone will be able to combat inflation and set competitive rates at the same time? Or do you think it will be more of a trade-off?

[sweetheart]

15. It will have the same problem the US has

Were each US state to have a different currency, then states with poor
economies could depreciate their currencies to woo investment... yet
this is not the case, and poor states need other types of economic
stimulus to correct where monetary policy cannot intervene. In this
regard, surely it will be more of a tradeoff.

That said, this is the case already for areas like scotland that get
the bottom of the stick when it comes to economic stimulus... single
currency or no.

By britain joining the Euro, there will be a powerful gesture of unity
that itself will give a momentum to economies in a region... that
all of europe would speak with one currency is so incredibly powerful
and not observable as a test case for what the euro "could" become.

[Anarcho-Socialist]

16. Thanks, I appreciate your analysis

:)

[fedsron2us]

14. Have to agree with your analysis

Lets face it for most of my life sterling has been a loser currency that has lurched from one crisis to another. The only people who are going to benefit from its retention are the currency speculators. The idea that retaining the pound somehow bolsters Britain's sovereignty should make everyone fall about with laughter. The sad fact is that the UK lost most of its independence when it became tied into the US military and intelligence system after World War II.