United Kingdom and Its Dilemma to Join the Single Currency

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United Kingdom and Its Dilemma to Join the Single Currency The euro is the single currency of twelve European Union countries: Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland. "Around 7.8 billion euro notes and 40.4 billion euro coins, together worth €144 billion" were put into general circulation by the central banks on 1st January 2001. Yes to Europe to the euro (2003) Killer facts [online] available from http://www.yes-campaign.com/site/home [accessed 5th august 2004] The single currency is controlled through the European Central Bank, which was established in 1998 in Frankfurt, Germany. Three European union nations have so far opted not to join the single currency, these are Denmark, Sweden and the United Kingdom. The aim of this essay is to assess weather or not the United Kingdom should join the single currency. I will do this by outlining the pros and cons of the euro and what it would mean for the UK to join. I will begin by discussing the argument for the United Kingdom joining the Euro. Statistically "36.4%" of Britain's population favour the idea of transitioning to the euro. This figure is mainly comprised of large business owners and traders. For them it would mean reduced transaction costs, with "savings estimated at around £2 billion annually" Yes to Europe to the euro (2003) Killer facts [online] available from http://www.yes-campaign.com/site/home [accessed 5th august 2004]. These savings come from not having to pay exchange rate commission or maintain auxiliary funds to compensate against currency instability. The elimination of exch... ... middle of paper ... ...Europe. Lecture notes, (2003) semester A, Glasgow Caledonian University. The association of European operational research societies (2003) the euro [online] available from http://www.euro-online.org [accessed 2nd august 2004]. No campaign welcomes decision not to join the euro (2004) [online] available from http://www.no-euro.com [accessed 12th august 2004] Yes to Europe to the euro (2003) Killer facts [online] available from http://www.yes-campaign.com/site/home [accessed 5th august 2004] --------------------------------------------------------------------- [1] Transaction costs would still exist, shipping *** etc but costs associated with exchange rates would be eliminated. [2] the ability for a company to easily compare prices over many companies in many countries [3] price transparency

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