Should Britain Join The Single Currency?

Should Britain Join The Single Currency?

Length: 622 words (1.8 double-spaced pages)

Rating: Excellent

Open Document

Essay Preview

More ↓
The debate has waged for several years now, ever since news of a single European Economic Union came first surfaced nearly fifteen years ago. The idea was simple, and focused on allowing multi-national European countries greater ease, and cost effective benefits when trading between countries. In a sense, the EEC was trying to implement an economic model similar to that of the United States, where amongst all fifty of the states there existed a single currency under a central federal bank that controlled the national interest rate level and other currency issues. Thus trade between the states was eased, promoting companies both with nation-wide interests, and those wishing to build from regional to nation wide platforms. However, since the official launch of the “Euro” in January of 1999, Britain, along with Sweden and the Dutch population, have chosen to remain isolated from this conglomerate, creating what many term a “two-speed” European economy. But why does the Britain business sector choose to remain isolated from this currency? This essay will attempt to examine both the positive and negative aspects of joining the single currency, while analyzing the forces behind Britain’s involvement.
     So what exactly are the benefits of a single currency for Britain’s business sector? First of all, firms that export a lot to other countries within the euro zone don't have to bear the costs of exchanging profits into their home currency anymore. Multinationals also save a lot of money if all their subsidiaries trade in the same currency. Smaller firms suddenly are finding customers in regions they thought they could never be bothered to export to. The disappearance of these transaction costs is bound to boost economic growth, and will make goods cheaper for consumers. And even the weak euro has been a boon for the euro zone, as its exports to the United States and the UK have become more competitive. The Financial Times noted, while the value of the euro has been decreasing, exports have risen from 50 billion euros, to now 75 billion euros annually.
     Furthermore, one currency across Europe increases the urge for companies to do business across the continent. For a start, it is easier to raise the cash to do a deal. Secondly, the fact of the single currency makes it easier to do business in other European countries, encouraging companies already lured by the prospect of boosting their revenues by entering new markets.

How to Cite this Page

MLA Citation:
"Should Britain Join The Single Currency?." 31 Mar 2020

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Should the United KingdomJoin the Single Currency? Essay example

- Should the United KingdomJoin the Single Currency. Introduction This project will concentrate on analysing the arguments put forth in favour of adopting the Euro as our currency, as well as those against it. A conclusion will then be drawn that weighs both the pros and cons and decides whether it would be beneficial to the UK economy if we adopted the Euro or continued to opt-out. Theory The major economic theories that will be used are the following: * Macroeconomic objectives. * Governmental macroeconomic policies....   [tags: Economics]

Free Essays
1716 words (4.9 pages)

Essay on Going Into a Single Currency

- Going Into a Single Currency The euro is a unified currency that is planned to take the place of national currencies following a referendum in the future. The use of the Euro will unite the member states creating a European super nation although this will in effect have implications; some good some bad on individuals, business, economies and governments. Before Britain joins the Euro the following criteria has to be satisfied: · The budget deficit has to be less than 3% of GDP, · The governments total debt has to be less than 6% of GDP, · Inflation has to be less than 1.5% higher than the average of the lowest inflation countries, · Exchange rates should...   [tags: Papers]

Research Papers
854 words (2.4 pages)

Essay about 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....   [tags: Papers]

Research Papers
1162 words (3.3 pages)

United Kingdom and Its Dilemma to Join the Single Currency Essay

- 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 [accessed 5th august 2004] The single currency is controlled through the European Central Bank, which was established in 1998 in Frankfurt, Germany....   [tags: Papers]

Research Papers
1533 words (4.4 pages)

Britain Should Withdraw From The European Union ( Eu ) Essay

- It is acknowledged that the United Kingdom (UK) vote calls for a nationwide referendum on whether Britain should withdraw from the European Union (EU). In the final June 2016 referendum, 51.9% voting British citizen turned out voted to leave the EU, and this process is commonly defined as Brexit. As a result, the British Prime Minister, Theresa May, formally issued a statement of triggering Article 50 of the Lisbon Treaty on 2 October 2016, which means that the UK will completely leave EU by the end of March 2019 (BBC NEWS, 2016)....   [tags: European Union, United Kingdom]

Research Papers
2060 words (5.9 pages)

The Extent to Which British Businesses are Likely to Benefit from the UK Membership of the European Single Currency

- The Extent to Which British Businesses are Likely to Benefit from the UK Membership of the European Single Currency The Euro is a single currency arrangement that came into theoretical operation between 11 members of the European Union in January 1999. On January 1st 2002, 12 of the 15 EU members got rid of their own currencies and introduced the Euro as their sole currency, with Sweden, Denmark and the UK being the exceptions. Some British ministers have clouded the issue as to whether Britain's entry (or not) will be a political or an economic decision....   [tags: Papers]

Research Papers
1326 words (3.8 pages)

Labour Party in Britain in the Years 1924-31 Essay

- Labour Party in Britain in the Years 1924-31 Historians have debated just how competent the two Labour administrations were between 1924 and 1931. Governments are normally only considered “competent” if they have managed the economy efficiently, prevented widespread corruption and maintained law and order. Labour came to power at the end of 1923, a time when the Conservatives and other right-wing groups were spreading vicious rumours about Socialism. MacDonald was determined to disprove these fears, particularly Churchill’s jibe that a Labour Party would “not be fit to govern”....   [tags: Papers]

Research Papers
2060 words (5.9 pages)

The Nature and Functions of Political Parties and Voting Behaviour in Britain

- The Nature and Functions of Political Parties and Voting Behaviour in Britain The two major parties in the British political system, the Labour party and the Conservative party, often mention the same issues of importance but have different policies on how these issues should be handled. Both parties state in their manifestoes that Education is an important issue - Labour sighting it a major priority, aiming to cut class sizes for 5-7 year olds to under 30 and to modernise comprehensive schools and provide funding for the implication of new technologies....   [tags: Papers]

Research Papers
940 words (2.7 pages)

Pros and Cons of the Euro Essay

- Pros and Cons of the Euro The United Kingdom will not join the single European currency with the first wave of countries on 1 January 1999. The Chancellor of the Exchequer, Gordon Brown, said in October that, although the government supported the principle of the single currency, Britain would not be ready to join at least until the second wave of countries join in 2002. He added that the UK should, however, begin to prepare for monetary union. There are many possible advantages and disadvantages that the government had to consider: Advantages: 1....   [tags: Finances Money European Currency Essays]

Free Essays
821 words (2.3 pages)

Should Scotland Be an Independent Country? Essay

- Prior to 1707 the island of great Britain housed two separate kingdoms , the kingdom of England and that of Scotland, although both had been under the rule of the same monarch since 1603, they were separate entities with individual parliaments. However with the acts of union- which proposed the joining of the two kingdoms – passed and both were amalgamated forming the United Kingdom of Great Britain, the act also brought them together under the parliament of Great Britain. While a surrender of independence was unpopular in Scotland, more than 300 years later, Scotland has not fully given up her national identity and thoughts for independence....   [tags: separate kindoms, monarch, finances]

Research Papers
1117 words (3.2 pages)

Related Searches

As George Jacobs stated, business strategies have been revolutionized, “Everybody is now forced to think in Continental or Global terms because there is no such thing as a national market.” This has helped national business sectors expand, and begin to compete on a global level against larger western companies. It is unarguable, that these outcomes would be most beneficial to British companies, but the question remains, at least in the eyes of the British business sector, as to whether these outcomes are a possibility or just a myth dreamed up by EU officials in Belgium.
     However it is important to note, regardless of whether these outcomes are myths or not, the actual importance of joining a single currency to Britain’s business sector is startling. The majority of Britain’s business sector has a consumer base which is not contained within the U.K., but rather pan-European. The U.K. market is quite small, and while there remains a few business that only cater to this market, the majority focus on targeting the entire European market base. In fact, it was reported in The Wall Street Journal’s European Edition that, “Over 75% of Britain’s business sector has a consumer market base, corporate or otherwise, which spans outside of the U.K. primarily into the European sector.” Thus joining the single currency cannot merely be viewed as
Return to