• 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...

Introduction

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.

Middle

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.

Conclusion

* 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. Economics of European Integration

    to incorporate proposals based on its observations and experiences in the renewed legislation. 6. Same BARRIERS against EFFECTIVE DEREGUATION Network industries share the same barriers against effective deregulation such as access, interconnection and legacy of monopoly. Also the liberalised market is not a perfect competitive market.

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

    as firms will be encouraged to lower prices and work towards productive efficiency in order to increase profits. 6. The UK is likely to benefit from lower inflation often associated with Euro-zone countries as a result of the implementation of tight monetary and fiscal policy.

  1. THE UK AND THE EURO

    Chapter 3: Advantages and disadvantages of the Euro to the UK 1. External economic instability The death of a sole trader might likely bring the business to a sudden end. Losses are bore by him alone. But in partnership, losses are shared by the partners.

  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.

    Data from the Morgan Stanley Capital International (MSCI) indices are based on high-capitalisation companies of the markets, while DataStream indices are defined as value-weighted broad indices of national stock markets, covering also medium- and small-capitalisation companies. The drawback of using the MSCI datasource for measuring stock market integration and segmentation

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

    As a single currency would be circulating in the community having replaced the various national currencies, companies and individuals would no longer have to transfer between currencies as they make purchases or invest in countries around the EU. Interest rates could be lower.

  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