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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]

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[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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