The Debate of Britain Joining the Euro Currency

The Debate of Britain Joining the Euro Currency

On the first of January 2002, several European countries joined the

Euro, a single

form of currency, which replaced these countries' own national

currency, meaning

that all countries that are a member of 'Euroland' accept the Euro as

their currency.

Among these countries were Ireland, France, Germany, and Italy. As

yet, Britain has

opted not to join the Euro.

Many argue that Britain should join the Euro, for both political and

economic reasons.

Economically, Britain is separated from the rest of the European

countries who have

adopted this currency, along with Sweden and Denmark who also opted to

stay out

of the Euro. This means that British businesses cannot share the

benefits of being

part of the Euro with the rest of Europe, as they are separated from

the main part of

the market by the variable exchange rate. British companies who export

to, import

from and invest in the rest of Europe will be less likely to do so in

future because of

uncertainty about profits because of changes in the currency and the

value of the

pound. The result will be British businesses retaining a more domestic

approach to

future investments, staying at home rather than investing abroad for

fear of loss in

profit. Equally, European companies will be reluctant to do business

in Britain. The

government's decision to opt out of the Euro means that British

companies risk

missing out on the benefits offered by membership of the Euro, such as

the

opportunity to be one of the leading exporters in 'Euroland'. In the

long term, it wi...

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...as a individual country,

as Romano Prodi,

President of the European Commission says: "The Euro can only lead to

closer and

closer integration of countries' economic policies… This demands that

member

states give up more sovereignty".

In conclusion, the issue of Britain joining the Euro is still a

much-debated one.

Whether the Government chooses to join the Euro or not, the decision

will affect the

country's economy. Romano Prodi, President of the European Commission

says of

joining the Euro: "By definition it's a permanent decision. You cannot

enter into

monetary union thinking you can do so for five years or so."

Britain's Government will have to think long and hard before coming to

any decisions

on the Euro, as it will affect our economy for now and for years to

come.