Discussions
Should Britain Adopt the Euro as its Currency?
Posted by filosofia • 12/13/08 • Subscribe to this Discussion [RSS] • Report This Topic
Topics: britain, convergence, Currency, dollar, eu, euro, europe, pound, single currency
When the EU countries changed to a single currency at the beginning of the century, Britain opted out, keeping the pound. It was understood at the time that this would probably only temporary, and that the situation would be under frequent review. Events have prevented the government from having much time to look at the question again.
When any country now applies to join the EU, they have to commit to changing to the single currency as soon as they meet the convergence criteria.
Given the fact that the euro is now the world's strongest currency, looking likely to replace the dollar as the first choice reserve currency, and given the continued poor performance of sterling against the euro, is it now perhaps time for Britain to make the change?
User Comments
-
no. Im a bit stubborn though, more for patriatic reasons than anything else.
God bless her magisty's doggies -
no no no no no no no no never-
why not??? -
I dont like the globalisation thing
nor do I like Ruddy Ruddy Ruddy's idea of making Oz part of Asia Pacific and opening up the borders in 2020 -
opening up the borders... that does not sound good
whats going on?? -
It was on the radio about 2 months ago. Most people missed it, I'll see what I can find for you.
The implications are terrible, Oz does not have the infrastructure to support millions of people from Asia. -
The idea is the same as the EU but is Asia Pacific instead
-
no we don't at all, in fact we struggle to keep up with the people who come in now
-
there would have to be restrictions, anyway thats just ridiculous, i am very disappointed
there would need to be development in the rest of the pacific before that would be remotely possible
************************ EDIT***************
all though that would make it easier for development in those areas.
i don't know.... i have mixed feelings :S -
this is just a bunch of political hot air,
very disappointed, i don't like this at all -
It's much more. Read it carefully
-
-
Bring back the shillings!!!!!!!!
And the pints :-) -
i think yes, and i also think every one should adopt metric
mind you, this is only my opinion -
No, Britain is an island. It is separate in many ways from Europe.-
That's true, but so is Cyprus. Also the Irish Republic has joined the single currency, and since then, the country has seen a great increase in living standards.
-
-
Well, from an economic standpoint, depends pretty much entirely on the financial status. If its unavoidable, they should.
Otherwise, there isn't any point to give up a currency that has so much history associated with it, notwithstanding the fact that the English people would let it be changed easily anyways :-)-
I think that ultimately it is unavoidable that Britain joins the single currency. The only real question is when? For better or worse, the destiny of the UK is inextricably bound up with that of the EU. Those people who think they can in some way pull out of the union and go back to some cosy little England of former days (which probably never really existed except in nostalgia), I'm sorry but I think they're living in a bit of a dream world. No offence meant to anyone, it's just my opinion.
-
-
No, although it would make going on holiday a bit easier I like the fact that we're different, it's like we still retain some of what makes us British- our money and our dislike for change. And actually, we had this discussion in my Politics class and if we were to switch to the Euro our economy would be all over the place for a long time before it began to get better, so maybe not the best thing in the current economic climate.-
Hi Maddie I'm so glad you joined this discussion. Is that true the economy would be all over the place? I know virtually nothing about economics, so I really can't imagine it, what would happen?
-
Hi
Apparently so, my Politics tutor said that even if we did join the Euro it wouldn't be as simple as it sounds, companies would have to change their finances and I'd imagine the Government would be affected, they'd have to fork out large sums of money to change fines and monetary issues, as well as spend money on educating the country about these changes. In the long term it's more likely to be stable, but depending on when the changeover were to take place the country would go through a shaky transitional phase. At least that's what I think he said, I tend to glaze over in class.
-
If you ask me, it looks like your Politics tutor is not being entirely objective, but is taking a political stance on this issue. Teachers often do that, using their superior experience and arguing power to forcibly indoctrinate students. (Look at history, there are countless examples of it.) And of course, there's the fact that the students are usually half asleep anyway.
People made the same dire warnings when the rest of the Union changed to the euro - it would be chaos, the monetary system would collapse, businesses would go bust, it would cause galloping inflation etc etc. But the changeover took place virtually without a hitch at midnight on 1st January. And everything just went on as normal from there.
-
-
Well, first of all, this is a VERY sensitive subject to discuss. Secondly, being British I do not think that we should change our currency because I simply like the pound and it's something about the history and the good old England, something really precious and special. And yes, before you say that, I am an arrogant snob and I am aware of it. -
I enjoy discussing subjects that are sensitive, and that have some meaning to the people involved in the discussion. Your views are very welcome and very well worth listening to.
-
-
Its agreeable that the economics of the UK is undeniably tied to that of the EU. But, haven't they always had a higher say than the other European nations when it comes to a matter of authority?
Changes made to value of the Pound to combat inflation in the UK has always had an impact on the other curriencies of the world.
Also let me discuss this from an economic standpoint.
1)The pound is currently the world's third largest reserve currency, after the Dollar and the Euro.
2)The Pound has been weakening only since the past year, and that coincides with the worst economic crisis in the past ten years.
My point is, even though it might be a viable option for England to jump into the Euro bandwagon in the future, the Pound Sterling is still going strong to write it off.-
Thank you for your answer, it offers a considered and objective view. It certainly looks like you are correct in your conclusions. In any case, given the situation inside Britain at the moment, from the point of view both of the economic situation and of public opinion, the right time to join the single currency could be some way off. At least two years probably.
However, from experience we can predict that if the business lobby in Britain begins to see entry to the eurozone as an attractive option, then it will almost certainly happen soon afterwards. Business interests are not usually put off by adverse public opinion, since they have many techniques at their disposal to sway that opinion.
-
-
I don't think Britain has much to gain by switching over to the Euro. The pound is strong. The only advantage is to tourists, because tourists can travel between countries and buy with the same currency without having to worry about conversions. In Africa, most of the smaller economies tend to favour the US Dollar, because its value is more stable and it works across border (borders in Africa are largely artificial).
Aren't Euros already used in Britian? As far as I know, the Euro is an alternative currency but does not replace the local currency. Could be wrong.-
The euro is not an alternative currency but is the sole currency of most of the countries in the EU, just as the dollar is in the US. This is in line with the aim of the EU to achieve economic and monetary union between the states. The ultimate goal is to have the eurozone comprising the entire EU. Britain was allowed to opt out of monetary union, among other reasons, because, being one of the "Big Three" largest states, it can quite easily get its own way, and because of certain peculiar factors such as the fact that it trades more with the outside world than any other state and the efficiency of its central bank. New applicants to the EU are now required to commit themselves to monetary union.
The euro is not used at all in Britain. There are countries of the world, for example Morocco, where the euro is accepted in payment for goods and services in lieu of the local currency, but this is generally only in places where the local currency is weak or unstable.
-
-
Given the fact that the euro is now the world's strongest currency
I do not believe that statement to be true. What makes you think that, and what are your sources?-
I read it somewhere, but I'm happy to stand corrected. It's certainly strong anyway.
-
"As of November 2008, with more than €751 billion in circulation (equivalent to about USD 953 billion, the euro is the currency with the highest combined value of cash in circulation in the world, having surpassed the U.S. dollar (USD)."
en.wikipedia.org/wiki/Euro
Of course the Pound is stronger in terms of exchange rate.
"The final date was 28 February 2002, by which all national currencies ceased to be legal tender in their respective member states. However, even after the official date, they continued to be accepted by national central banks for periods ranging from several years to forever in Austria, Germany, Ireland, and Spain."
So the local currencies are still around, even though they aren't legal tender in their respective member states.
"Although not legal tender in Denmark, Norway and the United Kingdom, the euro is accepted in some stores throughout these countries, particularly international stores in large cities, and shops in Northern Ireland near the border with the Republic of Ireland, where the euro is the official currency. Similarly, the euro is widely accepted in Switzerland, even by official boards, such as the Swiss Railways."
Even though the UK is not part of the Eurozone, it does accept the Euro in some stores. That's what confused me.
-
-
Slovakia has just joined the eurozone, and is doing very well for such a small country. By all accounts, the transition went very smoothly.
-
Who cares....whatever the currency we end up giving it to someone else anyway!-
Well, after all, that is what currency is for...
-
-
Yup... I say go with the Euro..the Empire is dead anyway, the Lion no longer roars proudly..and we suck at all sports.
-
Well yes, the Empire was finished a long time ago. The UK is now a full and active member of the EU and has been so for over 35 years! It is in fact one of the three largest and most influential members, along with France and Germany.
So the question is not whether Britain should be in the EU, but whether it should adopt the euro as a currency. -
The people who are adamant we stick with the pound are usually of that opinion for the wrong reasons...ie. 'patriotism' or just not wanting to learn a new system. Invariably, everytime Europe has done something as a whole and Britain has stood apart we have ended up joining anyway, just later and to our detriment. We are part of Europe and we need to move with Europe.-
Yes I agree. Most of the people who want to hang back from fully integrating with Europe are those who are old enough to have lived through a time when there was still a memory of the "glorious" days of the old British Empire.
Unfortunately, those people are still in control of key areas of government in the UK, and perhaps more importantly, of the British media.
-
Add Your Comment
Login to leave a message.
