should the uk adopt the euro
Should the UK adopt the Euro?
The movement from the sterling to the euro has been debate for a number of years. The transition has been overlooked in many factors including the economy, politics and sovereignty. There have been various views by many political bodies for and against the change over to the euro.
‘Joining the euro would almost certainly mean better conditions for businesses considering long-term investment in Britain.’ (http://news.bbc.co.uk/1/hi/uk_politics/3008201.stm). From the benefits for the businesses in the country and overall benefit for Britain; changing from the sterling to euro would change the economy by making more money within the country to work towards stabilising the countries money situations.
Changing from pounds to Euros would mean that Britain would not have exchange between the two which would save resources. There was a study undertook by the EU commission which found that ‘on average across the EMU mem¬bers there would be savings in dealers’ margins of 0.4 per cent of GDP.’ (European Commission, 1990). These findings show that there is clear indication of a positive reaction to the change of currencies.
Britain still using the pound means that the exchange risk for foreign companies is high. Companies have warned that if they do not change to the euro that they will have to move across the channel for their supplies. ‘Numbers in a recently published study show that Britain’s position has actually weakened dramatically relative to other EU countries. 1997-98, Britain attracted 52 percent of the foreign direct investment entering the EU. (Making the case for the euro by Peter B. Kenen). This shows that because many countries are going to the euro, for example France; Britain has decreased position compared to other EU countries which is bad for the Britain’s economy.
One of the main arguments against changing to the Euro is that Britain’s Sovereignty. Britain has a right to control its own affairs and changing to the euro
The movement from the sterling to the euro has been debate for a number of years. The transition has been overlooked in many factors including the economy, politics and sovereignty. There have been various views by many political bodies for and against the change over to the euro.
‘Joining the euro would almost certainly mean better conditions for businesses considering long-term investment in Britain.’ (http://news.bbc.co.uk/1/hi/uk_politics/3008201.stm). From the benefits for the businesses in the country and overall benefit for Britain; changing from the sterling to euro would change the economy by making more money within the country to work towards stabilising the countries money situations.
Changing from pounds to Euros would mean that Britain would not have exchange between the two which would save resources. There was a study undertook by the EU commission which found that ‘on average across the EMU mem¬bers there would be savings in dealers’ margins of 0.4 per cent of GDP.’ (European Commission, 1990). These findings show that there is clear indication of a positive reaction to the change of currencies.
Britain still using the pound means that the exchange risk for foreign companies is high. Companies have warned that if they do not change to the euro that they will have to move across the channel for their supplies. ‘Numbers in a recently published study show that Britain’s position has actually weakened dramatically relative to other EU countries. 1997-98, Britain attracted 52 percent of the foreign direct investment entering the EU. (Making the case for the euro by Peter B. Kenen). This shows that because many countries are going to the euro, for example France; Britain has decreased position compared to other EU countries which is bad for the Britain’s economy.
One of the main arguments against changing to the Euro is that Britain’s Sovereignty. Britain has a right to control its own affairs and changing to the euro