• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Discuss Whether The UK Should Join the Euro?

Extracts from this document...


Discuss Whether The UK Should Join the Euro? [25] The case for Britain to join the Euro has many advantages and disadvantages. If the decision is to join the euro, it will be because the advantages will outweigh the problems and so joining will benefit the UK economy. A large advantage to joining the Euro is that there will be easier trade and may even increase trade as there will be a single currency within the European Union. Time and money will be saved as currency will not have to be converted when trading. This is also in the public's interest as they will also not have to exchange money when going on holiday. This will encourage many more people to go on holiday not only out of the UK, but may also boost the tourism industry in Britain. By joining the Euro, there will be no need for the British government to use interest rate controlling policies as the EU will set a general rate that all members have to follow. ...read more.


There are not only advantages to joining however; there are also many disadvantages to this. Most of the disadvantages are concerned with the identity of Britain. By joining the Euro, Britain will not only lose sovereignty, but with that goes the cultural identity as well as political sovereignty. This could cause citizen unrest as the culture is the public and many people may revolt against the joining of the Euro. Other drawbacks to joining are more economic, such as the loss of interest rate power. The interest rates for all countries within the Euro will be a general rate set by European Central Bank (ECB), and the UK will lose its independent monetary policy as a result. Another result will be that the EU will dictate the levels of government spending that can take place. At the moment, the EU has set a rule that no country can run a budget deficit of more than 3% of GDP. ...read more.


* Is the UK economy flexible enough? * Would joining improve FDI? * Would joining damage the City? * Would joining be beneficial to the economy? As you can see there is no mention of exchange rates in these tests, so how would they know when to join. The government needs to decide the correct exchange rate for Britain to join the Euro, as if it was too low, the public will not be happy as they will want to get as many Euros for their sterling Pounds as possible. But if it was too high, the economy will object. As you can see there are many factors that the UK government needs to consider before joining the Euro, such as exchange rates and the 5 economic tests. I order to decide what is best for the country and the economy, the government needs to weigh out the advantages against the disadvantages. From the evidence given, I believe the disadvantages outweigh the advantages and so the government should decide not to join the Euro. Liam Stuart 13GPG The Euro Economics ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Do the Benefits of Joining the Euro Outweigh the Disadvantages?

    7. A loss of inward investment if we fail to join. This popular argument fails to distinguish between the loss of such investment due to the overvaluation of the pound, and the loss of it due to non-membership of the Euro.

  2. Economics of European Integration

    The regulation is also concerned to prevent the monopoly abuse by monitoring incumbent's price setting mechanism and discrimination of other access conditions. 5. AMENDMENT of initial DEREGULATION framework The unique nature of the network industries liberalisation requires permanent monitoring and verification of the functioning of the adopted legal framework.


    for a single market and obviously created the need for a monetary co operation between it then six member states. Events moved from EPU to EMA. On January 1, 2002, the Euro became a legal tender. Some of the elements of the EMU include single currency, a European central bank, European economic policy and political control.

  2. The effect of the Euro on 'The Carphone Warehouse' Plc

    An Introduction to the Euro: The 'Euro' was the name given to the single European currency which was first introduced on the 1st of January 1999. At the time of the introduction, 11 European countries embraced the single currency: Austria, Belgium, Luxembourg, Finland, France, Germany, Ireland, Italy, Holland, Portugal and Spain.

  1. The Quest for Optimal Asset Allocation Strategies in Integrating Europe.

    would have been no incentive to diversify over both markets in the first place. Thus, regardless of the underlying factors causing correlations among country indices, the implications for an investor in terms of diversification opportunities are still the same. What the theory of industry/country effects does tell us however, is

  2. Investigate if the UK would benefit by adopting the single currency, and if so ...

    The EMU has provoked a, "sitting on the fence," reaction. The chancellor made the decision to opt-out of the start of stage three on the basis of five economic tests, which UK economy had to meet before entry would be considered Advantages for UK adopting the Euro An initial benefit is that transaction costs would be substantially reduced.

  1. Evaluate whether or not the UK should join the Euro.

    Due to the change in exchange rates, a French business would have to pay more than they did the previous month to buy the goods from the business in the UK. Due to the instability of the exchange rates, firms are put off from trading and making long term contracts.

  2. Outline the arguments for not joining the Euro.

    rebuild its economic growth rate, while Britain would slowly be in decline. By keeping control of our economy we are able to run it according to the needs of the British economy. Our interest rates are set by the Bank of England, with decisions taken in relation to our own economic position.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work