Should Britain join the European Single Currency (EURO)

[MrPresident]

Recently I have been reading information relating to Britain joining the Euro and I began to wonder. Should Britain join the Euro? Do the British know enough about the Euro? What do Europeans think about the Euro? Do Europeans think Britain should join (or do Europeans want Britain to join)? What do non-Europeans think about the Euro? Will it rival the Dollar as an international currency? Would joining necessarly involve a loss of soveignty? Is a country defined by what it uses as a currency? Is the Euro a stepping stone to a United States of Europe? Should Eastern European countries be allowed/want to join the Euro? Should the public be consulted about whether or not a country should join (as in Denmark)?

 

[knowltok2]

I dub thee question boy.

As to what I think about it: go ahead, why not. At least it isn't called the "Amero."

The Euro will rival the dollar when the collective economy of Europe is deemed as reliable as that of the US. We could get into passionate debates about this, but it will be decided by international finance gurus and market forces, not by any rational debate or discussion, so there isn't much point.

Adding eastern European nations is a major question. Adding them could be a very important long term move for stability and increased prosperity. In the short term it will lower confidence in the Euro since the eastern European nations represent less stable economies than the Western ones. Personally I don't think this should matter to Europeans as it is the long term that matters, not some pride point of when and if the Euro surpasses the dollar.

As far as loss of sovreingty goes, the answer is yes, but does it really matter? Individual nations will lose direct control over their monatary system (Though for some it has been argued that they didn't have it in the first place). I'd say that as long as proper Western financial system controls are put into place regarding the setting of financial policy for the Euro, it doesn't matter. As far as the national pride aspect of currency goes, loose it, that is something for those uncultured Americans to have.

Basically, I see it like this: If the Euro succeeds, good to be part of the system. If it fails, the UK will be financial hurt regardless. Might as well jump in and if things go bad you can blame the French!

 

[polymath]

I'm against it at the moment, based purely upon economic criteria. The pound is strong, whereas since they joined the Euro, Ireland's (Eire's, rather) inflation has soared, and the Germans are in trouble because their rates are governed by the EU, not Germany.
Joining wouldn't involve a loss of sovereignty - in the UK, EU law is supreme anyway ( NB: but only because our parliament says so!!). It has been this way for 25 years and more, that is not the issue.

"Do the British know enough about the Euro?"
Probably not, except it makes touring Europe easier.

"Will it rival the dollar?"
I would say it would be a contender, certainly. Maybe Frank Bruno to U.S.'s Holyfield.

"Is the Euro a stepping stone to a U.S.E.?"
It is an integral piece of the puzzle. IMO, and to digress, if you look at Star Trek and the Federation of Planets, the E.U. is a stepping stone to something like that. Without holding it up as model of international co-operation, it does demonstrate how nations can work together, legislate together, make economic decisions together, with the emphasis on "together".

I have serious reservations about the Euro and the EU, based purely on the here-and-now. In a couple of years I might change my mind. In the long run, it should definitely be done. Followed by the world.

 

[Greadius]

Yes, join the Euro. The fact that a pound is worth more than a dollar does serious psychological to Americans, so we need you to switch a currency that has lower value

Because of previous EU policy, the economies of Europe are tied tightly enough together that it could actually be debilitating if the British economy wasn't a part of that. It might hurt Britian more if the EU is incapable of addressing monetary crisis across its bounds.

 

[Mr Spice]

Yes, you should join. As should Sweden and Denmark.

I can´t understand the argument "the Euro will destroy our nation" that is so common in both England and Sweden. If you tie your entire self esteem to your country´s currency, then you are in big trouble.

The Euro makes it much easier for people to travel and work within the Union. This is IMHO a good thing and enough reason to support it.

 

[amadeus]

This Yankee thinks that Britian should just "keep off the grass" for now...I think that the pound has proven strong in past years, and there's no specific purpose for switching over to the Euro right now.

I'd wait for mainland Europe to get their act together before joining the Euro.

 

[Simon Darkshade]

Wait and see for the moment. There is no urgent need to rush in, and the pound is still strong and reliable.
And before such a move is made, it should be put to the public to decide.

 

[Jimcat]

I'm abstaining from casting a vote, because a) I'm not British or European and b) I've seen many arguments both for and against.

For those who are wondering what the big deal with the Euro may be, you might want to do some reading at www.economist.com -- it's a London-based economic and political magazine, and they usually have at least one article about the Euro and EC affairs every week.

 

[sysyphus]

Not yet, but I think it's inevitable.

I think Canada should also adopt the Euro.

 

[amadeus]

From a really technical standpoint...uh...Canada...the last time I checked, was in North America

But I don't see the Canadian dollar to be strong enough to handle the transition...

 

[knowltok2]

I would disagree with Canada adopting the Euro. Differing currancies do serve a purpose. They can act as a safety valve for different economies. As long as Canada's needs are the same as Europe's there wouldn't be a problem, but when there are differences the economic policy that is right for Europe will not be right for Canada.

Europe is similar enough in economy, society, and demographics that it might be able to get away with a unified currency. Canada still has too many difference and potential differences. If some day Canada experienced a large population growth (Lot of empty land up there) while Europe remained static, or declined, the economic policy needed for the one would not be the same as the other.

Then again, if you want to, go for it!

 

[Greadius]

Originally posted by knowltok2
Europe is similar enough in economy, society, and demographics that it might be able to get away with a unified currency. Canada still has too many difference and potential differences.

Canada has more in common with the core of the EU than some of the current potential members.

But sheesh, why adopt the Euro? Just give it up and join the American dollar. We might even let you put a canuck on one someday

 

[sysyphus]

Originally posted by Greadius
But sheesh, why adopt the Euro? Just give it up and join the American dollar. We might even let you put a canuck on one someday

Okay, but someone other than Nelly Furtado.


Seriously though, it would seem that one world currency is ultimately inevitable.

The way I see it, Europe and North America will harmonise currency sooner than later anyway. Canada being located between America and Europe is the "bridge". We join first, America follows.

 

[knowltok2]

I'm not sure it is inevitable. There's a lot of water that has to pass under the bridge before we get to a point where the rest of the world can join as equal partners in a global currency. They can always peg themselves to the dollar or the Euro, but that can have negative results if things don't go your way.

As far as Canada and its similarity to Europe, you are right to an extent, but there are inherent differences resulting from geography and trading partners that can have serious consequences on one area or the other, depending on how the different areas develop and interact.

It could work fine, but it is not an automatic no-brainer.

 

[amadeus]

Originally posted by sysyphus


Okay, but someone other than Nelly Furtado.

At least she's ATTRACTIVE...

How about Alanis Morisette?

I'd say put the guys from Bachman Turner Overdrive on the $2 bill or a 75 cent piece.

 

[CurtSibling]

Nellie ******o?
Attractive?

Faugh!

The words 'massive overhype' spring to mind.

There's no accounting for taste...

 

[Hamlet]

Originally posted by polymath
the Germans are in trouble because their rates are governed by the EU, not Germany.

It's actually the European Central Bank.

I believe we should go in as soon as is realistically possible. I will be voting 'Yes' in the referendum, whenever it comes. Or at least when Mr Blair decides the time is right to hold it, I.E, he can win it.

 

[MrPresident]

A problem with Canada joining the Euro would be that they are members of the NAFTA (North American Free Trade Area). They would have to pull out of this treaty since EU members have a common external tariff on all non-members. The problem I have with the Euro are the barrers to the free movement of labour. The main barrier of this type is language. What is needed is an offical EU language that should be taught to all school children in the hope that it would eventfully become every Europeans first language. Sure national language should be preserved but it should be done in the manner of that of the Welsh language. My choice would be the English language, many Europeans already speak it as a second language. If this problem could be overcome them economic problems such as Germany being in a recession while Ireland is in a boom could easily be solved. Since the unemployed in Germany would move to solve the labour-shortage in Ireland.

 

[Mr Spice]

I agree with MrPresident to some degree, but IMHO it will never happen. At least not in a few hundred years. I just cannot imagíne the French accepting English as first language. Or the English accepting French. And so on.

 

[sysyphus]

Originally posted by MrPresident
The main barrier of this type is language. What is needed is an offical EU language that should be taught to all school children in the hope that it would eventfully become every Europeans first language. Sure national language should be preserved but it should be done in the manner of that of the Welsh language. My choice would be the English language, many Europeans already speak it as a second language. If this problem could be overcome them economic problems such as Germany being in a recession while Ireland is in a boom could easily be solved. Since the unemployed in Germany would move to solve the labour-shortage in Ireland.

English is a good choice, it is now the "international" language, and many countrties all over the world require all university students to learn it as a part of their degree.

French would also seem to be a logical choice as it's the language spoken in the greatest number of European nations.

Anyway, don't want to throw the thread of topic, so I'll stop it here.