Essay PreviewMore ↓
There are many reasons why Britain may want to join the Euro but there
are just as many reasons against this proposition. It is up to the
government and the people to decide on whether or not to accept this.
One of the reasons why Britain should join the Euro is that it will
provide more competition between organisations. This will push up the
quality of the products and services and will also increase the
efficiency of the organisations. Competition always boosts the economy
and since the Euro will unite the European countries further, a bigger
market will be opened up to the different businesses.
Another reason is that it will help poorer countries develop. If their
currency is united with the rest of Europe, they can be supported by
it. The interest rates set by Brussels will help small, weak economies
develop and in times of economic crisis the Euro will support it as
all the 'big' countries are with it. This gives an incentive for the
larger countries to help the smaller ones.
This will probably increase the sense of brotherhood between European
countries. This has many benefits such as greater tolerance and even
more free trade. A sense of unity is always important as it makes it
easier for the countries to communicate and work together.
There will also be greater specialisation and businesses will enjoy
greater economies of scale. The theory of comparative advantage says
that as different countries realise their strengths and weaknesses,
specialisation in an area such as Europe will occur. The Euro makes
this easier, providing a measure in which the countries can measure
their comparative advantage without the exchange rates.
Once the induction of the Euro goes through, nobody will need to keep
reserves to support the currency against different currencies in
Europe because they will all be one.
Once all there is one currency, the pricing by the companies will be
easier to see through and will help the consumer. Many times, the
companies manage to trick consumers with changing exchange rates but
How to Cite this Page
"Reasons for Adopting the Euro." 123HelpMe.com. 27 Feb 2020
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- 1. What are the advantages to being in the EU and adopting the Euro (two separate issues). What are the chief drawbacks (EU and Euro, economic and political). Why hasn’t England, Norway, Sweden, or Switzerland adopted the Euro. As part of the European Union, inhabitants are able to live, study and work in any country that belong to the EU without any restriction or barrier. Also, The European Union make emphasis in the workers rights, they obtain benefits of this union as a permit is not requirement to work in any EU country.... [tags: European Union, United States, United Kingdom]
1051 words (3 pages)
- Analysis of the Euro Analyzing the process leading up to the euro and the looking at the possible advantages and disadvantages that will result from the new currency are the key issues of this essay. The first section looks at some of the requirements leading up to the euro, including some of the specific fiscal goals required by the EMU regarding prospective members in 1999. The second section looks at some of the economic reasons for European Union countries to adopt the euro, focusing on the elimination of exchange rate fluctuations, increase trade overseas and across borders, and expanding markets for business as some of the advantages of euro currency countries.... [tags: Economics Eurpe Currency Euro Essays]
3729 words (10.7 pages)
- "Europe must prevent Greece from becoming an out-and-out catastrophe and make sure that the same fiscal 'remedy' is not applied to other weak economies" -- Franziska Brantner The brutality of the World War II and the anguish of the Cold War enforced nations in Europe to establish the European Union for peace and unity in the region. With ratification of the Maastricht Treaty by members of the European Community in 1993, an economic and political union; the European Union is formed. In December 2012, the European Union awarded the Nobel Peace Prize for its “historical accomplishments”.... [tags: European Union, Greek Crisis]
1497 words (4.3 pages)
- 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.... [tags: Papers]
1162 words (3.3 pages)
- Introduction The European Union is an economic and political grouping of 28 member-states in Europe that forms a common market. The market has a population of around 509 million people with a DGP of $16.69 trillion (2012) accounting for 23% of global GDP and 20% of the world's imports and exports (EU, 2013). The union has its origins in 1958 through its predecessor European Economic Community which had six members (EU 2014). The current name was adapted in 1993 and ever since membership has increased to include countries that were previously viewed as non-European such as Turkey.... [tags: common currency, common market]
1091 words (3.1 pages)
- The Euro-zone is an economic and monetary union (EMU), comprised 17 European Union (EU) member states, which have all adopted the Euro as their common currency and sole legal tender. Within the zone, monetary policies are the responsibility of the European Central Bank (ECB), governed by a president with a board, comprised national central banks leaders. Fiscal policy is less centralized, but restricted by the previously agreed upon rules within the Broad Economic Policy Guidelines. These guidelines set individual national limits on deficits and national debt - Fiscal Commitments (European Council 2011). In the early 2000s the euro grew in appeal for many reasons: euro-zone was similar to t... [tags: EU, EMU, Euro, currency, economy]
1264 words (3.6 pages)
- Abstract On January 1, 1999, when eleven nations of the European Union joined together and all shared the same currency this established the world's first common currency, it is known as the Euro. Is this Euro going to be the down fall of the American dollar as a world dominant currency. What are the effects on the United States economy from this overpowering currency. What impact will this have on travelers from the United States to Europe. The Euro, Effects on America On January 1, 1999 the world watched as 11 nations of the European Union joined their currencies to each other and established the world's first common currency, the Euro.... [tags: Currency Euro European Union]
1165 words (3.3 pages)
- Der Euro, Unser Geld On January 1, 2002, it was the talk of the town, the talk of the world, actually. The Euro – the largest financial creation known to our modern world. Living in Germany during this momentous transition has provided for interesting insight into the Euro’s true impression on the people. Of course, the change from using the deutsch Mark to using the Euro was not the only real impact. It is the deeper financial integration with 11 other countries that permeates and concerns the minds of the Germans.... [tags: Euro Money Finances Essays]
1167 words (3.3 pages)
- The Euro In 1991 it was decided that the Euro would be introduced. It officially became the currency of eleven European nations: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, and Spain, shortly thereafter. Although the actually hard currency will not be introduced until January 1, 2002, it is possible to trade and complete transactions using this currency. This introduction allowed for a single money supply throughout most of Europe, caused increased transparency of prices and stocks throughout the nations adopting it and encouraged long-term investments between firms in different countries by eliminating exchange rate risk.... [tags: essays papers]
1049 words (3 pages)
- The Euro The Euro is the single currency of the European Union. It was first introduced in cashless form on Jauary 1st1999, following years of negotiation and preparation. Euro notes and coins will officially come into circulation on 1st January 2002 in the twelve participating countries. These countries are Germany, Belgium, the Netherlands, Luxembourg, Italy, France, Ireland, Spain, Portugal, Austria and Finland; Greece became the twelfth member when it joined the Euro on January 1st 2001.... [tags: Papers]
1496 words (4.3 pages)
- Arguments For and Against the Reintroduction of the Death Penalty for Murder
- Great Expectations by Charles Dickens
- The Charge of the Light Brigade by Tennyson
- The Dramatic Effectiveness of Three Soliloquies in Romeo and Juliet
- William Shakespeare's Romeo and Juliet
- Status and Position of European Jews at the End of 19th Century
transparent and consumers will get a better deal.
Everyone wants the Euro except Britain so they are a bit out of place.
Having a single currency without one of the major countries not a
participant will be a downside as the Euro will have to compete with
the pound and will not be as efficient.
The pound is so strong outside the Euro that it has probably caused
unemployment. Joining the Euro will probably bring unemployment down.
Businesses have lost a lot because of the fluctuations and the high
prices of the sterling. Their profit margin has sometimes been cut to
0 because of the fluctuations. Having a single currency will eliminate
There are also some reasons why Britain should not join the Euro.
These will help us see whether it is really worth joining.
Joining the Euro will push up the price of food as the Common
Agricultural Policy will have an easier job with a single currency.
They will be able to set the food prices much, much easier without the
hassle of exchange rates.
There is also the sense of lost sovereignty. If the Euro is adopted,
the British people will dearly miss their pounds because they had a
strong, patriotic bond to the image of the Queen on the notes. The
pound has been there for so long, it is almost part of the British
culture and many Britons will be driven by pure emotion when they
choose not take up the Euro. Inducing the Euro will basically take
away a part of Britain's individuality and identity. Adopting the Euro
will hand control of the taxes to the EU and therefore England's
people will be financially governed by Brussels.
Denmark didn't join the Euro and therefore many of the people must
have been fundamentally against it. There must have been pretty strong
reasons to persuade the people of a whole country to vote against the
Euro. This argument could be countered by saying that many countries
did choose to join and therefore there must be some good reasons to
join the Euro. The vote in Denmark was close and there are many
differences between its economy and Britain's.
Joining the ERM from 1990 to 1992 was a disaster for Britain and it
took Britain a lot of money to restore the pound again. The pound was
left at an all time low and a fortune was pumped in to restore it to
its original value. There is no need to repeat that nightmare, should
the Euro be a big failure.
Once the Euro is introduced prices are going to increase. The giant
cost of the changeover will push up the prices to generate the funds
lost in the changeover.
Europe has never really done anything for Britain except impose
regulations and increase costs. Why should Britain suffer a loss and
In conclusion, I think that there are valid reasons on both sides of
the debate but it is just a matter of opinion as to which argument
affects you the most. It will be up to the people of Britain.